Regulatory Developments and Impacts Involving Electricity Storage in Texas
Elizabeth Drews, Brown McCarroll, LLP, 512-479-1144,
Overview
Each technology that meets consumer demands for electricity has capabilities, limitations and needs that differ somewhat from those of other technologies. Electric regulatory requirements typically are written to fit the technologies relevant at that time. As new technologies develop, issues may arise as to whether existing requirements create unintended barriers to entry.
Electricity storage is now operational on a grid scale in parts of the United States and other countries. Like other newer technologies, storage has not been a perfect fit for pre-existing electric regulatory requirements. Lawmakers and regulatory bodies have been evaluating how to adjust requirements and practices to allow development and utilization of storage.
Texas provides robust examples of work being done on these issues. Since 2010 the Texas Legislature, the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) have been addressing a variety of issues relating to storage. This presentation will focus on current and proposed electric regulatory treatment of electricity storage in ERCOT.
Methods
Research of current and proposed electric regulatory requirements in ERCOT and of impacts of such requirements on electricity storage development and utilization.
Results
The Texas Legislature, the PUCT, and ERCOT have made substantial progress toward addressing electric regulatory barriers to storage development and utilization, allowing some development of compressed air energy storage and battery projects in Texas to go forward. Significant issues remain, including statutory barriers to full utilization of storage technology functionality, obstacles involving market design and product definition in the market rules, and regulatory uncertainty that inhibits investment. These issues must be considered in the broader context of competitive and reliability needs of the electricity market as a whole.
Conclusions
Texas has made major strides toward addressing electric regulatory obstacles to storage development and use, but significant issues remain to be addressed.
References
Elizabeth Drews, Electric Regulatory Storage Issues Involving Electricity Storage in Texas, presented at the University of Texas School of Law, 2012 Wind, Solar and Storage Conference, February 14-16, 2012, Austin, Texas.
www.puc.state.tx.us
www.ercot.com
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