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ERCOT Emergency Load Response

ERCOT Emergency Load Response. A Consumer’s Perspective Alice Jackson Occidental Energy Ventures Corp. Questions Asked and Answered. Does ERCOT need more capacity to ensure reliability? Did the April 17th, 2006 incident bring to light the “black swan” of shoulder months?

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ERCOT Emergency Load Response

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  1. ERCOT Emergency Load Response A Consumer’s Perspective Alice Jackson Occidental Energy Ventures Corp

  2. Questions Asked and Answered • Does ERCOT need more capacity to ensure reliability? • Did the April 17th, 2006 incident bring to light the “black swan” of shoulder months? • Do we need to evaluate and take action to prevent a reoccurrence?

  3. Proposal • Sharpen the tools in the toolbox prior to adding another item to the mix. • RRS – NSRS Linked Bids • LaaR entry into RPRS • If another tool is necessary, promptly utilize excess LaaR. • Market based solution • Loads are already qualified and tested • Minimal changes to systems should be necessary

  4. Proposal Part II in Detail • ERCOT issues a monthly notice of EILP quantity necessary for reliability. • Bidding for EILP provision commences similar to the other daily Ancillary Services. • Participants would be any provider that has the necessary equipment to interrupt in 10 minutes (including unarmed LaaR) that are willing to commit to the EILP program for the month. • EILP pricing is determined by its own clearing price.

  5. Continued… • A LaaR that participates as an EILP provider would disarm their UFR so that they would remain online for the manual call requirement. • Clawback for non-performance. • Deployment of the EILP participants would take place as a last resort prior to rolling black outs.

  6. Benefits • EILP will only be procured monthly when it is necessary, thus overall cost to the market should be reduced. • Can be started quickly because qualification, testing, and evaluation processes are already in place and active in the market. • The excess of 650 MW of LaaR can be fully utilized, in addition to other load resources that can respond in 10 minutes but do not have UFR. • The market is not locked into a long-term agreement with any specific provider.

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