Public Utility Commission of Texas Chair DeAnn Walker last week directed staff to open a rulemaking that widens the pool of applicants for ERCOT’s reliability monitor.
The PUC’s rules limit the number of entities that can be contracted by the commission and ERCOT as the grid operator’s reliability monitor (25.503). They direct the commission to consider independence and objectivity, experience, familiarity with the ERCOT region, cost effectiveness and managing confidential information.
The Texas Reliability Entity has served as ERCOT’s reliability monitor since July 2010, assuming the responsibilities once held by the grid operator. Texas RE recently had its contract renewed through 2023.
“I’m not saying we need to walk away from the Texas RE. I’m saying we need to have a rule that gives us a larger pool,” Walker said during Friday’s open meeting.
Commissioner Arthur D’Andrea agreed. “Competition’s a good thing,” he said.
“We take pride in the vital role we play in assuring electric reliability in Texas and look forward to continued collaboration with the PUCT,” a Texas RE spokesperson said.
Final Tx Line for LP&L Transition OK’d
The PUC cleared the way for the final transmission line necessary to integrate 470 MW of Lubbock Power & Light’s load into ERCOT by approving a proposal for decision from the State Office of Administrative Hearings (49151).
The commissioners rejected arguments by a lone intervenor that the line, planned as a single-circuit, 345-kV line that links with LP&L’s 115-kV system, be built at 115-kV with an additional substation. The intervenor’s legal counsel noted that 345-kV lines require 175 feet of right of way and 115-kV lines only 60 feet.
Oncor legal counsel Jaren Taylor said the substation would incur additional costs. The project could cost as much as $88.6 million. Oncor is responsible for building the line, which will be between 22 and 33 miles long, but LP&L will own and operate the line.
A final order will likely be issued during the PUC’s next open meeting on March 12. The PUC’s decision keeps LP&L on a path to meet its June 2021 deadline to join the ERCOT grid. (See “LP&L Welcomed into ERCOT,” Texas PUC OKs Sempra-Oncor Deal, LP&L Transfer.)
Settlement Reduces AEP Texas Revenue Requirement by $40M
The commissioners approved a settlement between AEP Texas and PUC staff, the Office of Public Utility Counsel and other entities that will result in a $40 million “black box” reduction in the utility’s total base rate revenue requirement (49494).
A final order has yet to be drafted, but the settlement will result in a 9.4% return of equity for AEP Texas and numerous ring-fencing measures.
AEP Texas had asked for annual distribution revenues of $59.1 million in its annual distribution revenues.
— Tom Kleckner
