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Texas PUC Poised To "Shelve" PCM, Leans Towards Designing DRRS As Allowing For Potential Future Use Of DRRS As Resource Adequacy Tool
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While the Texas PUC did not at today's open meeting, adopt decisions regarding the performance credit mechanism (PCM) or ancillary service design or quantities, a majority of Commissioners did express a view that the PCM should be set aside pending other market reforms which are being undertaken
Summarizing the discussion of the PCM at today's meeting, while emphasizing that she was not showing her own hand, Commissioner Courtney Hjaltman during the meeting said that it sounds like, from the discussion among commissioners, that PCM will be shelved
With PCM on the shelf available to the PUC as a reference, Hjaltman said that costs under PCM could be used as a comparison against other proposals
Likewise, Commissioner Lori Cobos cited Dispatchable Reliability Reserve Service, which is still be developed, and the implementation of Real-Time Co-optimization plus Batteries (RTC+B), under which the A/S Demand Curves are still being developed. Once data from implementation of these initiatives is available, the PUC can come back to PCM, Cobos said
Chair Thomas Gleeson agreed that PCM is on the books if needed
In light of the apparently growing consensus on shelving PCM, several Commissioners appeared ready to design Dispatchable Reliability Reserve Service (DRRS) in a flexible manner, such that DRRS could, in the future, be used as a resource adequacy tool, rather than being designed to solely be an ancillary service. Commissioners were addressing a choice in designing DRRS that would allow flexibility for use as a resource adequacy tool in the future, and were not addressing using DRRS in the immediate term as a resource adequacy tool
Gleeson said that it would be "somewhat foolish" to tie the PUC's hands in designing DRRS such that the design would not allow future use as a resource adequacy tool
Gleeson also said, regarding eligibility for DRRS, that given the amount of batteries in the ERCOT queue, there does not appear to be an incentive problem in getting batteries on the ERCOT system, while there is a problem getting thermal dispatchable generation on the system, and thus an exclusion of batteries from DRRS may be appropriate
Project 55845 – Review of Ancillary Services
Project 55000 – Performance Credit Mechanism (PCM)
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December 12, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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