NOTICE DATE: December 14, 2023
NOTICE TYPE: M-C121423-01 Operations
SHORT DESCRIPTION: ERCOT Value of Lost Load (VOLL) Study Update and Request for Non-Opt-In Entity (NOIE) Assistance
INTENDED AUDIENCE: Competitive Retailers (CRs), Transmission & Distribution Utilities (TDUs), and NOIEs
DAYS AFFECTED: Survey anticipated to begin no sooner than February 2024
LONG DESCRIPTION: At the direction of the Public Utility Commission of Texas (Commission), ERCOT is conducting a study to update the Value of Lost Load (VOLL) for the ERCOT Region in support of the market initiative to establish a reliability standard. VOLL represents a customer's willingness to pay for reliable electric service. VOLL is an input in certain Commission rules and ERCOT Protocols and is currently administratively established as $5,000 per megawatt hour (MWh) in the ERCOT Region. As reported in a status update filing to the Commission in PUC Project No. 55837, ERCOT has engaged The Brattle Group and its survey administration subcontractor, PlanBeyond, to perform a VOLL study.
As part of the VOLL study, a survey of retail electric customers will be performed and distribution of that survey to a sample of customers is anticipated to begin no sooner than February 2024. Additional information on the survey is included in the VOLL Survey Work Plan. As endorsed by the Commission at the December 14, 2023 Open Meeting, for competitive areas of the ERCOT Region, ERCOT will use available Customer Billing Contact Information (CBCI) for distributing the VOLL survey to customers. With respect to NOIE service areas, ERCOT will partner with interested NOIEs to distribute the VOLL survey to certain customers within their service area. At the Open Meeting, all commissioners encouraged NOIE participation in the VOLL survey and emphasized that they would like to see participation from both rural and urban NOIEs.
ACTION REQUIRED: The Commission and ERCOT encourage municipally-owned utilities and electric co-operatives in the ERCOT Region that may be interested in partnering with ERCOT to support distribution of the VOLL survey in their respective service areas to contact Ryan King ([log in to unmask])and Matt Arth ([log in to unmask]) at ERCOT as soon as possible to explore this option.
As endorsed by the Commission at the December 14, 2023 Open Meeting, CRs are requested to include customer email addresses in CBCI files submitted in January and February 2024, to the extent that CRs have such email addresses in their possession.
ADDITIONAL INFORMATION: Additional information on the VOLL study will continue to be filed with the Commission in Project No. 55837.
CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at [log in to unmask].
If you are receiving email from a public ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.
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