ERCOT presented Project 55999, involving the establishment of four new Generic Transmission Constraints (GTCs) to manage flow on 345-kV lines in South Texas..
These GTCs are meant to limit flows to avoid hitting Interconnection Reliability Operating Limits (IROLs). IROLs are defined in NERC rules as limits, which if violated, could lead to “instability, uncontrolled separation, or cascading outages”..
These GTCs are driven by the transmission bottleneck between South Texas and the core of the ERCOT system.
ERCOT now has a plan in place to shed load if necessary to avoid violating these IROLs.
Challenges leading to these new GTCs include rapid load growth beyond forecasts, generation switching into ERCOT, and generation retirements.
More generally, generation and load development timelines are now much shorter than transmission development timelines, requiring reevaluation of the planning process.
ERCOT is proactively working to mitigate the issue by working to expedite transmission planning, and exploring options for demand response, storage solutions, and regulatory guidance for crypto miners.
Performance Credit Mechanism and Staff's Memo discussed.
Commissioners Glotfelty and Mitchell prioritized simplicity as a design goal.
Commissioner Cobos listed numerous specific concerns and suggestions on Staff’s memo addressing designed parameters identified by ERCOT; themes included impact of cost cap on design parameters and how future decisions on other matters such as the reliability standard, RTC+B, and new Ancillary Services will interact with PCM decisions.
Commissioner Jackson emphasized getting the most value available under the constrained timeline was key and that the perfect should not be the enemy of the good.
Staff discussed the 37 design parameters and their recommendations listed in their filed memo.
Chairman confirmed acceptance of the five bullet points in the staff's memo, including the request for default mitigation measures from the IMM.
David Smeltzer stated that Staff believes the Grant program allows for an interpretation to include switchables based on performance standards
There was a discussion on including switchables in the Texas Energy Fund Completion Bonus Grant Program, the commissioners agreed and staff is working on a recommendation
Discussion on the differences between grant program and loan program in terms of performance standards and payment structure
Rule has been published publicly for 10 days, with staff recommendation to exclude switchables for the Loan program.
Staff reported no contact from companies or individuals inquiring about a loan, but were approached by some parties asking about a grant for a switchable unit.
New PUC rule 25.510 was adopted implementing the Loan Program.
Alison Fink of Commission Staff laid out the proposed order that will establish the program.
Chairman Gleeson filed a memo recommending loosening restrictions on performance criteria. Performance availability factor to be reduced from 90% to 85% and the performance outage factor moving from 10% up to 15%.
All other Commissioners concurred on adjusting the PAF and POF.
Commission supported Staff’s position on not allowing other senior debt, how to treat existing plants with new interconnection points, and the exclusion of switchable units in the program.
Glotfelty encouraged industrials to discuss with legislature regarding generating facilities at industrial sites and the potential for smaller aggregated facilities to participate in the program.
