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AUSTIN, TX – In a joint press conference, PUC Chairman Peter Lake and ERCOT Interim President and CEO Brad Jones briefed Texans on the concrete steps their companies are taking to improve network reliability as the hottest summer days approached.
“As the summer is getting hot and we are working to make the most of the available resources, we have directed ERCOT to take aggressive action to increase the available reserve power,” said Chairman Lake. “While our policy efforts are heavily aligned with the long-term goals set by Governor Abbott and the Texas legislature, these operational changes will increase the network’s safety margin in the short term.”
The PUC has instructed ERCOT to significantly increase the standby power for the afternoon hours, when demand is highest in summer. ERCOT does this by drawing more reserve power from generators, whose systems can react relatively quickly if required. These reserves, known as ancillary services, are essential for a network operator like ERCOT to maintain the critically sensitive balance between electricity supply and demand.
In addition, ERCOT acts more quickly in order to secure additional performance if the cushion between generation supply and customer demand is too small. In the past few years, ERCOT may have exercised its authority to the last moment to commission a power plant at cost (known as Reliability Unit Commitment or “RUC”) in the hope that the price of electricity would convince the generators to fire theirs Plants.
“In line with the direction of the PUC, our new standard process is to pull the trigger much earlier to avoid potentially tight grid conditions,” said Jones. “For Texans and Texan companies, this simply means that the power is there when they need it.”
So far, ERCOT has procured more than 800 additional hours of generation service in July by overriding functions customary in the market in order to bring power plants into operation. That’s more than any single month in recent history. The purchase of reserve power in July 2021 increased by 38% year-on-year, with the increase forecast to 56% in August. Most Texas customers will not see an increase in their bill as a result of this promotion.
“We assume that enough electricity will be generated to meet the electricity demand in summer 2021. However, there are times when, like other carriers across the country and around the world, we ask our customers to save – this is just another tool in the toolkit, ”said Jones. “In response to a conservation notice, Texans may need to take some simple measures for a limited amount of time – such as doing laundry in the morning or running the pool pump at night instead of in the afternoon – to maintain network reliability.”
The PUC website, www.powertosavetexas.org, offers a variety of simple conservation tips for Texas electricity customers.
In the long term, the PUC is working to implement the laws passed by the Texas legislature that focus on reforming ERCOT, weathering the state’s electrical system, strengthening network integrity, and strengthening the authority’s penal powers to enforce compliance.
“As we address the challenge of reshaping the electricity market, everything is on the table from incentives to build new power plants to capital from improving battery technology,” concluded Lake. “In the meantime, we’ll keep Texans informed as our state gets through another hot summer, and we’re tracking the network reliability Texans demand and deserve.”
About the municipal commission
Our mission is to serve Texans by regulating the state’s electricity, telecommunications, water and sanitation, enforcing relevant laws, and helping customers resolve consumer complaints. Since its inception in 1975, the Commission has a long and proud history of serving Texas by protecting customers, promoting competition and promoting quality infrastructure. To learn more, please visit www.puc.texas.gov.
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