“Texas PUC should mull cutting reliability capacity from ORDC formula: staff”
In a memo filed Thursday, Public Utility Commission of Texas staff recommended considering the removal of generation committed for reliability from the Electric Reliability Council of Texas’ calculations used with its Operating Reserve Demand Curve, a scarcity price adder, which drew mixed reactions from industry observers Friday.
…For example, Katie Coleman, an attorney representing Texas Industrial Energy Consumers, Friday cited the organization’s previous filings calling for no action before this summer. “This will be the first time the market has been tested since the Commission overhauled ERCOT’s scarcity pricing regime, including: (1) tripling the price caps, (2) implementing the Operating Reserve Demand Curve (ORDC), and (3) creating a mechanism to offset the impact of price-taking energy during emergency conditions through the Reliability Deployment Price Adder (RDPA),” TIEC’s filing states. “The Commission will have the first opportunity to stress-test the market it has built in 2018, and should see how it performs before changing it yet again.”