Update on Energy Supply Analysis Studies - April 2024
The report provides insights into the status of CONE, Reliability Standard, and VOLL studies conducted by Pete Warnken Resource Adequacy Supply Analysis Working Group. It covers discussions on After-Tax Weighted Cost of Capital (ATWACC), progress on the CONE study, updates on Reliability Standard Scenario Study, and ongoing VOLL survey activities. The projects are on track for timely completion, with key milestones outlined for each study.
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Status of CONE, Reliability Standard, and VOLL Studies Pete Warnken Resource Adequacy Supply Analysis Working Group April 19, 2024
CONE Study: After-Tax Weighted Cost of Capital (ATWACC) Discussion Brattle started a discussion on the ATWACC during the March 22 SAWG meeting; they also received feedback after the meeting Many of the comments were similar to comments Brattle addressed in its prior PJM studies, and some point to possible further inquiry; they will respond to the feedback in the report Brattle will provide a comment/response document on ATWACC, which will be distributed via Listserv email and posted to the April 19 SAWG meeting webpage Consistent with the agreed scope/approach for this study, the Brattle report will present a base ATWACC value derived by adjusting the most recent PJM value upward for changes in risk-free rate and state income taxes; they will also present the implications of an alternative ATWACC with an assumed ERCOT premium consistent with some stakeholder suggestions 2 ERCOT Public
CONE Study Status Project is still on track: delivery of the draft study report expected by the end of May Brattle developed a reference technology comment-response document, which is posted to the webpage for this SAWG meeting For the thermal dispatchable reference technology, Brattle reduced the LM6000PC turbine count from eight to six 3 ERCOT Public
Reliability Standard Scenario Study Filed Revised Phase 3 and Phase 4 portfolio simulations with the Commission on April 4: https://interchange.puc.texas.gov/Documents/54584_55_1380 808.PDF Open Public meeting held April 11: Commission signaled the desire to define reliability standard parameters during the May 16 Open Meeting and adopt a rule in August Public workshop on the reliability standard planned for the afternoon of May 2 4 ERCOT Public
Value of Lost Load (VOLL) Study VOLL Survey soft launch began March 26 with larger outreach to Competitive Retail areas starting April 9 Outreach to customers in NOIE partner areas began April 16 Current response metrics are positive: ~1,150 residential responses so far and ~600 commercial responses Survey will be open until May 17 Still anticipating VOLL survey project completion by end of Q3 5 ERCOT Public
