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Texas PUC Staff File Proposed New Rules For TDUs' Mobile Generation, Impact On REPs
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Staff of the Texas PUC have filed a draft proposal for publication to create new §25.56, relating to Temporary Emergency Electric Energy Facilities (TEEEF, aka mobile generation), and §25.59, relating to Long Lead-Time Facilities.
Under the draft, a TDU may deploy TEEEF to aid in restoring power to its distribution customers during an event that a TDU "reasonably determines" is a "significant power outage" in which: (A) the independent organization certified under PURA §39.151 for the ERCOT region has ordered the TDU to shed load; or (B) the TDU’s distribution facilities are not being fully served by the bulk power system under normal operations.
The draft TEEEF rule includes a proposed definition for "significant power outage", with various described conditions meeting the term (e.g. ERCOT load shed, a declared emergency from a relevant state agency, etc.). Notably, apart from more objective conditions, the draft would also include as a definition for the phrase "significant power outage" an event that results in a loss of electric power that, "affects a significant number of a TDU’s distribution customers, and has lasted, or is expected to last, for at least six hours[.]"
The draft would require a TDU to receive PUC approval for the amount of TEEEF generating capacity the TDU seeks to lease.
The draft provides that a TDU may enter into a lease for TEEEF without prior PUC approval if the TDU lacks the TEEEF generating capacity necessary to aid in restoration, but such capacity must not "significantly exceed" the amount of megawatts necessary to restore electric service
The draft provides that a TDU must, when reasonably practicable, use a competitive bidding process to lease TEEEF.
The draft provides that a TDU that leases a TEEEF must not sell energy or ancillary services from the facility.
The draft provides that a TEEEF must: (A) be operated in isolation from the bulk power system; and
(B) not be included in locational marginal pricing calculations, pricing, or reliability models developed by the independent organization certified under PURA §39.151 for the ERCOT region.
The draft provides that, "A TDU will ensure, to the extent reasonably practicable, that: (A) a retail distribution customer’s usage during the TDU’s operation of a TEEEF is excluded from the electric usage reported to the independent organization certified under PURA §39.151 for the ERCOT region for settlement and to retail electric providers (REPs) for customer billing[.]"
The draft provides that a TDU may request recovery of eligible costs, including any deferred expenses, through a standalone TEEEF rider proceeding, a DCRF proceeding, or in another ratemaking proceeding where it is appropriate to recover distribution-invested capital and associated costs.
"A TDU must provide notice to REPs 45 days prior to the effective date of a new rate," the draft provides
The draft also addresses TDUs' ability to procure long lead-time facilities, which are transmission and distribution facilities that would aid in restoring power to the TDU’s distribution customers following a significant power outage and require at least six months to obtain.
"These [long lead-time] facilities may not include energy storage equipment or facilities as described under Public Utility Regulatory Act (PURA), Chapter 35, Subchapter E," the draft states
Project 53404
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June 10, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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