FERC & NERC released their winter reliability assessment & it's not good for Texas. In a Uri-like event we would be short "by about 19.7GW," almost as much as Feb. 2021. To the suprise of few, the ERCOT grid still has major problems. #txlege#txenergy 1/ ferc.gov/media/report-2…
"For extreme winter conditions, such as occurred during Winter Storm Uri, ERCOT indicates the need to allow for a resource derate of 11.5GW. This would reduce available resources to 64.3 GW for an extreme winter condition, which is below the extreme winter peak load of 84 GW...
"...by about 19.7 GW. During extreme winter conditions, while ERCOT can gain 1.6 GW of benefit from operational mitigations, this still leaves a shortfall of up to 18.1 GW. These above-normal winter peak load and outage conditions could result in the need to employ EEAs...
"... and operational tools (i.e., demand response, transfers, and load shed), which may be needed under extreme peak demand and outage scenarios."
You'll likely recall that "load shed" means, in common usage, blackouts. This is not the assessment anyone should want to see. 4/
On the positive side, FERC and NERC expect a mild winter. They also note progress note on adoption of weatherization standards and inspections. Still, the risk of outages in extreme winter weather remains high according to this report. #txlege 5/
During the FERC meeting today, Chairman Glick noted that the problem in Feb 2021 was not lack of generation capacity, it was lack of fuel availability (gas and coal) and *operational* capacity. We are still vulnerable for the same reasons. #txlege#energytwitter 6/
Many of the FERC/NERC recommendations made in the wake of the February disaster (e.g., #energyefficiency and #demandresponse, more stringent weatherization and regulation of gas supply, to name but a few) have not yet (or only barely) been acted on. #txlege 7/ End🧵
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On the @PUCTX mtg agenda for 9:30 are distributed energy resources, transmission, market design, restoration of service after an outage, & the calendar for rulemakings for the remainder of the year.
Agenda & livestream below. #txenergy 2/ adminmonitor.com/tx/puct/open_m…
ERCOT and the PUCT Chair continue to put out misleading information even while they talk about rebuilding trust with the public. They're drastically misrepresenting the costs of their changes to the market. #txlege#txenergy 1/ spectrumlocalnews.com/tx/austin/news…
For months, the Chairman of the PUC and ex interim CEO of ERCOT insisted that the market changes they have made, which they often refer to as “conservative operations," only cost $1.26. They arrived at this number by looking at only a tiny part of the changes they've made. 2/
As an example, the single biggest cost of their changes isn't included in the numbers they provided to the press. The IMM told the Board in Aug that the cost from the ORDC changes (scarcity pricing) was $2b through July. $2b over 7 months doesn't equal $1.26/household. #txlege 3/
Meeting focused on #energyefficiency just started. Cmsr Jackson will speak in a minute. When she was introduced, Chair Lake said she would focus on EE. The agenda for the mtg is below. Discussion @ 1pm of potential rule changes to the programs. #txlege interchange.puc.texas.gov/Documents/3857…
In 2021, Texas' energy efficiency programs saved 775GWh at a cost of 1.5c per kWh. Average cost of energy in Texas is ~10x that amount. Unfortunately, our programs are tiny relative to other states.
The report is here: interchange.puc.texas.gov/search/documen… #txlege#txenergy#energytwitter
#Energyefficiency programs in Texas are highly cost effective, saving customers $3.80 for every $1 spent in 2021.
Crazy idea, just spitballing here, but maybe we should, I don't know, do more of it? Maybe we could, dare to dream, reach the average state's savings level? #txlege
Last night, Gov Abbott said “electricity costs in TX remain one of the lowest in the entire US & far lower than the nat'l avg.” Acc'g to @EIAgov, this is false.
In 2019, *before* Uri, Texas' residential electric bills were 7th highest in the US. Now things are worse. 1/ #txlege
Once 2021 & 2022 data is entered, we'll likely be even worse off relative to other states.
The Independent Market Monitor shows ~$4-5 billion in added costs from "conservative operations" (ORDC, RUCs, + increased reserves for full year 2022). #energytwitter#TXGovDebate 2/
Transmission congestion, a problem festering for nearly a decade, has caused another $2.1b in consumer costs thru July (likely $3-3.5b in 2022)
Per household, all this adds $100s in costs at a time >50% of Texans are cutting back on spending bc of high home energy bills. 3/
On the @PUCTX's agenda today, dicussions of electric companies' "emergency operations plans" & "electric weather preparedness standards," which are based on 95th percentile historical weather & still do not account for extreme "tail events" (like Uri) or climate change. #txlege
Also on the agenda, ERCOT filed it's first "true-up" for the $2.9 billion in securitization charges: "This True-Up Filing reflects a need to increase Uplift Charges. Up-front costs in excessof those estimated were incurred in connection w/ the initial issuance of the... bonds."
For the $2.1 billion (Subchapter N) in "Uplift Charges" (such a delightful Orwellian use of language, the charges are "uplifted" to you! how uplifting), filing is here: interchange.puc.texas.gov/Documents/5271…
Demand stayed just below 80GW today. Large customer #demandresponse in the form of a rate structure called 4CP (more in this thread) helped to increase reliability and lower costs. Large customers are paid for their reductions. Small customers are not. 1/🧵 #txlege#txenergy
We won't have a reliable and affordable grid without demand flexibility. It’s possible—maybe—to white knuckle it through a summer with aging power plants at an extra cost of billions of dollars each year. But there’s a better and cheaper way... #energytwitter 2/
To have a grid that is reliable and a market that is affordable, regulators need to figure out how to incorporate demand flexibility into market design.
*Pay people* to automatically (no action required) shift use to times when power is cheap and plentiful to reduce peaks. 3/