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NRG Seeks Confirmation That Third Party Ownership, Use As Peak Shaving, Is Permitted Under Texas Backup Power Package Program
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In comments to the Texas PUC, NRG Energy has sought confirmation that a third-party ownership model will be allowed under the Texas Backup Power Package (TBPP) program, and that generation installed under the TBPP will be permitted to engage in load management
TBPP will provide grants for applicants to install back-up generation at facilities that support community health, safety, and well-being (called critical facilities by ECM in this story)
NRG said that the owners of such facilities, including government entities, may not have a desire to own the generation (including under lease-to-own), as generation ownership and maintenance is outside of these customers' expertise. Tax and liability issues related to generation ownership may also give pause to critical facility owners concerning the installation of back-up power
As such, NRG asked that the PUC, in a forthcoming rule on TBPP, permit (or at least not prohibit) "alternative ownership models" for TBPP generation, as long as such ownership, "comport[s] with PURA[.]"
NRG specifically asked that the PUC permit models under which a third party owns the TBPP generation and provides resilience as a service
NRG said that because, under statute, a TBPP generator may not sell wholesale power to the grid or provide ancillary services, a TBPP owner should not be considered a power generation company, and since TBPP generation is only to be used when grid power is not available, no delivery of power for retail sale occurs, and thus a TBPP owner should not be considered a retail electric provider.
NRG also said that the PUC should affirm that TBPP generation may be used for load management and peak load shaving
NRG said that various statutory prohibitions concerning TBPP power (i.e. no wholesale sales to the grid) do not prohibit the owner of the TBPP generation from using the generation to manage the critical facility's consumption, provided that the TBPP remains able to perform as required under statute during grid emergencies
NRG said that such load management should occur, "through an appropriate arrangement with its [the critical facility's] retail electric provider[.]"
NRG said that allowing the TBPP generation to be used for load management would make a TBPP project more economic for critical facilities, noting that a grant under the TBPP program is limited to $500 per kW, with the costs for back-up power assets and installation expected to exceed such grant
Project 57236
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December 16, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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