ERCOT Announces 6 Initiatives

What’s happening? This week ERCOT released the following 6 initiatives:

•  Taking a more aggressive operating approach. ERCOT is bringing more generation online sooner if it is needed to balance supply and demand. The grid operator is also purchasing more reserve power, especially on days when the weather forecast is uncertain.
• Requiring CEO certifications. After a rule change, all market participants who own or operate generation resources and/or transmission/distribution power lines will be required to submit a letter signed by their CEO twice a year certifying their companies have completed their weatherization preparations to protect the electric grid for the summer and winter seasons.
• Adding new requirements for generation owners. ERCOT is proposing a new market rule that requires generators to provide operational updates more frequently.
• Assessing on-site fuel supplies. ERCOT is reviewing the need for on-site fuel supplies for some generators.
• Performing unannounced testing of generation resources. This testing helps verify that generators have provided accurate information about their availability.
• Addressing transmission constraints in Rio Grande Valley. ERCOT and the PUC are initiating a process to address RGV transmission limitations and provide increased market access for resources in the Valley. This will improve reliability for customers during normal conditions and high-risk weather events.

Why is this important? After February 2021 Winter Storm Uri, ERCOT is under the microscope from policymakers, the public, business interests, and consumer advocates.

How will this be important? ERCOT wants to balance grid reliability with consumer protections and free market incentives.

ERCOT | ERCOT unveils Roadmap to Improving Grid Reliability