ERCOT VOLL Study Shows VOLL As $667,000/MWh for Small C&Is; ERCOT Makes Recommendation On Market-wide VOLL

Paul Ring | Source: Energy Choice Matters | Posted 08/23/2024

ERCOT in a filing with the Texas PUC recommends that the value of lost load, for purposes of planning activities including the reliability standard, be set at ~$35,000 per MWh, which reflects an average across the ERCOT market for a 1-hour outage duration

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ERCOT has recommended to the Texas PUC that the value of lost load (VOLL), used for planning activities and the reliability standard, be set at approximately $35,000 per MWh, representing an average for a 1-hour outage across the ERCOT market. This suggestion was made based on a VOLL study and report from Brattle, which was submitted along with ERCOT's filing.

The VOLL study, which involved surveys of customers, reveals varying values by customer class, with the 1-hour VOLL estimated at around $4,000 per MWh for residential customers, $667,000 per MWh for small commercial and industrial (C&I) customers, and $23,000 per MWh for medium to large C&I customers. Previously, an interim VOLL of $25,000 was set by the PUC while awaiting the completion of the study, which was filed under PUC Project 55837.

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ERCOT VOLL Study Shows VOLL As $667,000/MWh for Small C&Is; ERCOT Makes Recommendation On Market-wide VOLL

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