Advanced Technologies in the Texas Electric Market Julie Parsley, Commissioner Public Utility...
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![Page 1: Advanced Technologies in the Texas Electric Market Julie Parsley, Commissioner Public Utility Commission of Texas National Energy Marketers Association.](https://reader035.fdocuments.in/reader035/viewer/2022062421/56649da95503460f94a96d21/html5/thumbnails/1.jpg)
Advanced Technologies in the Texas Electric
Market
Julie Parsley, CommissionerPublic Utility Commission of TexasNational Energy Marketers Association March 31, 2004
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Advanced Technologies in the Texas Electric Market
• ERCOT Market and Basic Framework • Opportunities for Advanced Technologies
– Competitive Energy Services– Competitive Metering– Distributed Generation– Energy Storage– High Temperature Conductors– Power Electronics
• FACTS Devices• HVDC Ties
– Broadband Over Power Lines
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Texas Electric Market
• The electric industry in ERCOT is approximately:• $17 billion a year at the wholesale level• $24 billion a year at the retail level
• ERCOT represents approximately 85% of Texas• About 300 million MWh of power flow through the
ERCOT system on an annual basis• Prices have increased due to rising natural gas
prices:• The wholesale price has been
approximately $55/MWh• The retail price has been approximately
$80/MWh
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ERCOT - Electric Reliability Council of Texas
SPP - Southwest Power Pool
SERC - Southeastern Electric Reliability Council
WSCC - Western Systems Coordinating Council
ERCOT Boundaries Within ERCOT Only Texas PUC has Jurisdiction; in Other Areas, Texas and the FERC Have Jurisdiction
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Restructured Electric MarketPower
Generation Companies
(PGCs)
Transmission and Distribution
Utilities (TDUs)
UnregulatedRegulated
Open Access
End User
RetailProvider
RetailProvider
RetailProvider
Unregulated
Retail Electric
Providers ( REPs)
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Basic Framework of the ERCOT Market
• PGCs register with the PUC and must comply with the ERCOT Protocols and the PUC’s wholesale code of conduct.
• TDUs must provide nondiscriminatory access to wholesale transmission service. Pricing is based on a postage stamp method. TDUs must offer standard terms of service.
• REPs contract with PGCs for power to serve retail customers. Customers may contract with competitive energy services providers for additional products and services.
• REPs must meet certain financial and technical qualifications to be certified by the PUC. REPs must comply with the PUC’s customer protection standards.
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PUC and ERCOT Oversee the Market
• Role of the PUC– Continue to regulate service quality and rates for
TDUs – Ensure a fair competitive playing field for all
unregulated services– Establish and enforce customer protections– Oversee ERCOT
• Role of ERCOT, the Independent System Operator (ISO)– Central control center for grid operations– Maintain system reliability– Customer registration agent for customer
switching– Conduct transmission planning
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Competitive Energy Markets Require Services that the Power System Was
Not Developed to Provide
• The transmission system was not developed for commercial sales.
• Electricity consumption is increasing and power quality is important to sensitive microprocessor-based equipment.
• The conventional grid must be transformed to a smart electricity network.
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Competitive Energy Services (CES)
• Utilities are prohibited from providing CES as of September 1, 2000.
• Opportunities for CES providers: – Specialize in particular competitive services (e.g.,
load-management, lighting, facilities operations, transformation equipment, hedging and risk management) without providing electricity.
– Partner with REPs to provide CES with electricity.
• CES are generally available on a competitive basis. – Utility can petition to provide a CES if it is not widely
available. – Affected person or PUC staff can petition to
designate other services as CES or end a utility’s provisioning of a CES.
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Competitive Metering• Competitive metering for commercial and industrial
(C&I) customers began January 1, 2004. Metering for residential customers is provided by the TDU until the later of September 1, 2005, or the date on which at least 40% of the residential customers are served by unaffiliated REPs.
• C&I customers may choose who owns the meter (the retail customer, REP, TDU, or other person authorized by the customer) and the customer owns the meter data.
• ERCOT has a stakeholder process to establish and periodically revise a list of meters qualifying as competitive meters.
• To date, customer participation is lacking. The PUC is examining whether there are potential barriers.
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Distributed Generation (DG)• Customers are entitled to access to on-site DG.
• DG is an electrical generating unit(s) located at a customer’s point of delivery up to ten MWs which is connected at a voltage less than 60 kV.
• DG adds more competitive options, provides cost savings, and benefits the electric system during periods of capacity constraints.
• Texas has approximately 220,305 kWs of DG capacity.
• Wholesale market redesign efforts to move from a zonal model to a nodal system should accommodate future expansion and innovation.
• For more information, go to: http://www.puc.state.tx.us/electric/business/dg/dg.cfm.
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Energy Storage
• Compressed Air Energy Storage (CAES) basically uses technology to store energy in the form of compressed air in an underground salt cavern.
• CAES could be used to optimize non-firm generation and manage transmission congestion constraints.– Study performed in 2003 in connection with
curtailments of wind generation in West Texas.
• There are regulatory implications surrounding cost recovery for assets (storage) that are neither purely transmission, nor purely generation.
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High Temperature Conductors• High temperature conductors (HTCs) may be an
attractive alternative to new wires to address thermal limitations and loading issues:– HTCs can increase transfer capability using existing
towers and ROW. – HTCs do not require regulatory approval through the
CCN process.
• Aluminum Conductor Composite Reinforced (ACCR):– Can provide transmission capacities up to 3 times
greater than traditional Aluminum Conductor Steel Reinforced (ACSR).
– ACCR cost is 4 to 6 times the cost of ACSR.
• Aluminum Conductor Steel Supported (ACSS):– ACSS has been used in Texas since 2000.– One Texas utility has approximately 2,000 circuit miles
of ACSS and is participating in research on a national level testing five different types of conductors.
– ACSS cost premium is only 10% over ACSR.
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Power Electronics
• Power electronics improve system stability and enable higher power transfer levels over greater distances.
• Flexible AC Transmission Systems (FACTS) devices: – Can help with functions that are required for smooth
operation of the electrical network (frequency control, load-flow control, reactive power, and voltage stability).
– Can control the power flow and increase transfer capability.
– Do not require regulatory CCN approval or additional ROW.
• High-Voltage DC (HVDC) ties: – Increase the capacity of an existing power grid and
allow power transmission between unsynchronized AC systems.
– Require CCN approval.– Texas has three HVDC ties and one pending CCN
case for an additional HVDC tie with Mexico.
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Broadband Over Power Lines (BPL)
• Over 5,000 comments and replies received in response to the FCC’s April 2003 Notice of Inquiry addressing areas such as potential benefits, potential interference, and measurement procedures.
• NARUC task force formed in December 2003.• FCC NPRM issued Feb. 2004.• AT&T recently announced that it was exploring
opportunities in Texas.• Texas PUC has not formally addressed the many
surrounding issues.
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