Texas Register, Volume 32, Number 39, Pages 6689-6904, September 28, 2007 Page: 6,712
6689-6904 p. ; 28 cm.View a full description of this periodical.
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Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: October 28, 2007
For further information, please call: (512) 936-7223
SUBCHAPTER S. WHOLESALE MARKETS
16 TAC 25.507
The Public Utility Commission of Texas (commission) proposes
an amendment to 25.507, relating to Electric Reliability Council
of Texas (ERCOT) Emergency Interruptible Load Service (EILS).
ERCOT has the discretion to instruct utilities to interrupt firm
service to a limited number of customers, in order to prevent a
broader service interruption. The emergency interruptible load
service is intended to provide a means of reducing demand by
interrupting service to customers who have offered to be inter-
rupted, for a price, rather than interrupting service to customers
who expect to have continuous, reliable service. The proposed
amendment will make modifications to the service to allow ER-
COT to maintain electric service for customers if an emergency
arises in which electric generation resources are not adequate
to supply customers' demand. This proposed rule is a compe-
tition rule subject to judicial review as specified in Public Utility
Regulatory Act (PURA) 39.001(e). Project Number 34706 is
assigned to this proceeding.
Shawnee Claiborn-Pinto, Sr. Retail Market Analyst, Electric In-
dustry Oversight, has determined that for each year of the first
five-year period the proposed section is in effect there will be no
fiscal implications for state or local government as a result of en-
forcing or administering the section.
Ms. Claiborn-Pinto has determined that for each year of the first
five years the proposed section is in effect the public benefit an-
ticipated as a result of enforcing the proposed section will be
fewer involuntary interruptions of electric retail customers. There
will be no adverse economic effect on small businesses or mi-
cro-businesses as a result of enforcing this section. There may
be economic costs to persons who are required to comply with
the proposed section. These costs are ERCOT's costs associ-
ated with procuring emergency interruptible load from customers
who are willing to provide this service. However, it is believed
that the benefits accruing from implementation of the proposed
section will outweigh these costs. Customers will incur costs in
participating in the program, but their participation will be volun-
tary, and it is expected that they will participate only if they expect
to receive payments from ERCOT that will result in a net benefit
to them.
Ms. Claiborn-Pinto has also determined that for each year of the
first five years the proposed section is in effect there should be
no effect on a local economy, and therefore no local employment
impact statement is required under Administrative Procedure Act
(APA), Texas Government Code 2001.022.
The commission staff will conduct a public hearing on this rule-
making, if requested pursuant to the Administrative Procedure
Act, Texas Government Code 2001.029, at the commission's
offices located in the William B. Travis Building, 1701 North Con-
gress Avenue, Austin, Texas 78701 on Monday, October 15,
2007, at 9:30 a.m. The request for a public hearing must be re-
ceived within 10 days after publication of the proposed section.Comments on the proposal may be submitted to the Filing Clerk,
Public Utility Commission of Texas, 1701 North Congress Av-
enue, P.O. Box 13326, Austin, Texas 78711-3326, within 14 days
after publication. Reply comments may be submitted within 18
days after publication. Sixteen copies of comments on the pro-
posed section are required to be filed pursuant to 22.71 (c) of
this title. Comments should be organized in a manner consistent
with the organization of the proposed rule. The commission in-
vites specific comments regarding the costs associated with, and
benefits that will be gained by, implementation of the proposed
section. The commission will consider the costs and benefits in
deciding whether to adopt the section. All comments should re-
fer to Project Number 34706.
The commission will also take comments on the following ques-
tion:
Giving ERCOT some flexibility in setting the duration of the con-
tract periods or in seeking resources in addition to the resources
acquired for the periods established in the rule might help ER-
COT deal with unexpected events, such as an extended outage
of a large generating unit. Should the rule give ERCOT this flex-
ibility?
This amendment is proposed under the Public Utility Regula-
tory Act, Texas Utilities Code Annotated 11.002 (Vernon 2007)
(PURA), which states that it is the purpose of this title to grant
to the Public Utility Commission of Texas authority to make and
enforce rules necessary to protect customers of electric services
consistent with the public interest; 14.002 which provides the
Public Utility Commission with the authority to make and enforce
rules reasonably required in the exercise of its powers and juris-
diction; and specifically, 39.151 which provides that the com-
mission shall adopt and enforce rules relating to the reliability of
the regional electrical network and accounting for the production
and delivery of electricity among generators and all other market
participants. This amendment also gives the commission com-
plete authority to oversee an independent organization's (such
as ERCOT) budget and operations to ensure that it adequately
performs its functions.
Cross Reference to Statutes: Public Utility Regulatory Act
11.002, 14.002 and 39.151.
25.507. Electric Reliability Council of Texas (ERCOT) Emergency
Interruptible Load Service (EILS).
(a) EILS procurement. ERCOT shall procure EILS, a special
emergency service that is intended to be deployed by ERCOT in an
Emergency Electric Curtailment Plan (EECP) event prior to or in con-
junction with ERCOT instructing transmission and distribution service
providers to interrupt firm load.
(1) (No change.)
Sf(2- Notwithstanding the freeing the firs S entret
p .d. b ehal he from the effective date of this cton through May of
(2) [(3)] ERCOT may determine cost limits for each EILS
contract period in order to ensure that the EILS cost cap is not exceeded.
In order to minimize the cost of EILS, ERCOT may reject any bid that
ERCOT determines to be unreasonable or outside of the parameters of
an acceptable bid.
B4) T emaimumameantefEILSfer whiehERGOTmay
contract inct an ,ILS contract period is ,00 megawatts (MW) -I
(3) [-5}] [The minimum amount of EILS for which] ER-
COT may contract for any number of MW in an EILS contract pe-32 TexReg 6712 September 28, 2007 Texas Register
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Texas. Secretary of State. Texas Register, Volume 32, Number 39, Pages 6689-6904, September 28, 2007, periodical, September 28, 2007; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97416/m1/22/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.