In a November 17th memo to Public Utility Commission (PUC), Commissioner Will McAdams has proposed that the PUC adopt a Dispatchable Portfolio Standard (DPS) to address reliability in ERCOT, as an alternative to the Load Serving Entity (LSE) capacity obligation. The proposal would create Dispatchable Energy Credits for certain qualifying generators under the DPS, similar to the current federal Renewable Energy Credit (REC) system.
The proposal lays out possible accreditation and qualification standards for DEC generation, including 5-minute ramp up to full nameplate capacity, 2-hour minimum battery discharge time, bidding at peak market hours, verification of performance qualifications, pay for performance, and interconnection voltage standards.
McAdams’ memo states that while the proposed DPS program would “exclude most of the existing dispatchable fleet,” the PUC consensus on a suite of new ancillary services and adjustments to the Operating Reserve Demand Curve (ORDC) would support existing dispatchable generators.
PUCT commissioners discussed this proposal and others at length and invited various speakers to share their views. One challenge identified with the DEC proposal is its incentive that is only available to certain generators participating in a competitive market, forcing non-participating units offline. More discussion will ensue on these proposals