in News Departments > New & Noteworthy
print the content item

The Electric Reliability Council of Texas (ERCOT), the grid operator for most of the state, is withdrawing its request for a fee increase filed last June with the Public Utility Commission in light of the recently announced delay in the nodal market implementation.

"The revised nodal schedule currently being developed suggests implementation will be delayed, so ERCOT management reviewed the revenue requirements for 2009," says Bob Kahn, president and CEO of ERCOT. "We concluded that the current fee of $0.4171 is sufficient to fund base operations until the new nodal budget and schedule are developed, after which updated 2009 operating costs can be more accurately predicted."
The board of directors approved the 2009 budget in May, with a $0.1527 increase in the system administration fee from $0.4171 to $0.5698 per MWh.

Management's conclusion that the system administration fee can remain unchanged for 2009 hinges on approximately $42 million of revenue requirement reductions that include the following:

- ERCOT labor and costs to support the nodal program will continue to be charged to the nodal program into 2009, rather than ceasing Dec. 1,

- projects scheduled to enhance the completed and operational nodal market will not be undertaken on the timeline contemplated in the 2009 budget, and

- additional incremental debt will either be avoided or repayment deferred until the nodal market is operational.

The system administration fee is assessed on wholesale energy transactions and becomes part of the overall cost of electricity.

SOURCE: Electric Reliability Council of Texas


Trachte Inc._id1770
Latest Top Stories

Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.


Could Initial Offshore Wind Projects Crash New England's REC Market?

Some are concerned that the first offshore wind projects could negatively impact pricing of renewable energy credits (RECs) in New England.


Catching Up With The DOE's Down-Select Offshore Winners

The three recipients of key U.S. Department of Energy (DOE) funding provide updates on their offshore wind demonstration projects.


Texas Comptroller Attacks Wind Power, And Industry Fights Back

Texas Comptroller Susan Combs recently released a report calling for an end to wind power subsidies. The Wind Coalition has responded, saying the report is riddled with misinformation.

Canwea_id1984
Renewable NRG_id1934