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June 14, 2019

Texas Commission tees up discussion of Real-Time Co-Optimization

by Kelso King, Grid Monitor
Source – Grid Monitor
Posted 06/13/2019

At the June 11 Open Meeting, Chairman DeAnn Walker was not ready to make a decision on Real-Time Co-optimization of Energy and Ancillary Services (RTC) for ERCOT, having come to realize something concerning setting the value for the Value of Lost Load (VOLL) and System Wide Offer Cap (SWOC) and felt that she needed to spend more time on that. Chairman Walker is also waiting on additional input from ERCOT on another issue, concerning a Commission decision that wasn’t in their current cost, how much it would cost and how long it would take.

Commissioner D’Andrea agreed, adding that it seems that just going through the process of answering the PUCT’s questions has caused people to change their minds, which he thought was good. He believed that ERCOT could probably work most of the things out.

Commissioner D’Andrea believes there are still big questions that he would like to dig into, including how much this will cost, which he acknowledged will be a big part of determining whether it is worth doing, but also “setting the numbers correctly.” He noted there will be a bunch of mathematical approaches that could be used and would like ERCOT to propose several that might work and allow the PUCT to pick one.

Commissioner Botkin agreed that being considerate of different issues at the beginning is the right approach.

Chairman Walker suggested that parties may have even modified their positions once comments were filed. She noted that she wants to move this along, adding that ERCOT staff wanted something by the end of this year, and she believes they are still within that timeframe, even with spending more time.

The Commission is likely to discuss this further at next Open Meeting, on June 27.

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