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Project #38578

Energy Efficiency Implementation Project under 16 TAC §25.181

Staff Assigned:
Therese Harris, Infrastructure Division
512-936-7378
therese.harris@puc.texas.gov

Staff Assigned:
Chase Lipscomb, Infrastructure Division
512-936-7376
chase.lipscomb@puc.texas.gov

Energy Efficiency Stakeholder Working Group 2023

Program Goals Working Group
1st Session Slides | 2nd Session Slides | 3rd Session Slides

Low-Income & Underserved Segments Working Group
1st Session Slides | 2nd Session Slides | 3rd Session Slides

Demand Response Working Group
1st Session Slides | 2nd Session Slides | 3rd Session Slides

Program Planning Working Group
1st Session Slides | 2nd Session Slides | 3rd Session Slides

 

 

Avoided Cost of Capacity

Based on the Energy Information Administration's (EIA) Table 2, Cost and Performance Characteristics of New Central Station Electricity Generating Technologies, the base overnight cost of a combustion turbine-industrial frame is $626 per kilowatt (kW) in the Texas Reliability Entity or Electric Reliability Council of Texas (ERCOT) region. Because this amount is less than the $700 per kW threshold set by 16 Texas Administrative Code (TAC) §25.181(d)(2)(A)(ii), the avoided cost of capacity is $80 per kW-year for 2022. This information was filed in Project No. 38578, Item No. 46

Based on the Energy Information Administration's (EIA) Table 2, Cost and Performance Characteristics of New Central Station Electricity Generating Technologies, the base overnight cost of a combustion turbine-industrial frame is $626 per kilowatt (kW) in the Texas Reliability Entity or Electric Reliability Council of Texas (ERCOT) region. Because this amount is less than the $700 per kW threshold set by 16 Texas Administrative Code (TAC) §25.181(d)(2)(A)(ii), the avoided cost of capacity is $80 per kW-year for 2021. This information was filed in Project No. 38578, Item No. 28

Based on the Energy Information Administration's (EIA) Table 8.2, Cost and Performance Characteristics of New Central Station Electricity Generating Technologies, the base overnight cost of an advanced combustion turbine is $658 per kW. Since this amount is less than the $700 per kW threshold set forth in §25.181(d)(2)(A)(ii), the avoided cost of capacity will remain at $80 per kW for 2020.

Based on the Energy Information Administration's (EIA) Table 8.2, Cost and Performance Characteristics of New Central Station Electricity Generating Technologies, the base overnight cost of an advanced combustion turbine is $648 per kW. Since this amount is less than the $700 per kW threshold set forth in §25.181(d)(2)(A), the avoided cost of capacity will remain at $80 per kW for 2019.

Based on the Energy Information Administration's (EIA) Table 8.2, Cost and Performance Characteristics of New Central Station Electricity Generating Technologies, the base overnight cost of an advanced combustion turbine is $640 per kW. Since this amount is less than the $700 per kW threshold set forth in §25.181(d)(2)(A), the avoided cost of capacity will remain at $80 per kW for 2018.

Based on the Energy Information Administration's (EIA) Table 8.2, Cost and Performance Characteristics of New Central Station Electricity Generating Technologies, the base overnight cost of an advanced combustion turbine is $632 per kW. Since this amount is less than the $700 per kW threshold set forth in §25.181(d)(2)(A), the avoided cost of capacity will remain at $80 per kW for 2017.

Based on the Energy Information Administration's (EIA) Table 8.2, Cost and Performance Characteristics of New Central Station Electricity Generating Technologies, the base overnight cost of an advanced combustion turbine is $639 per kW. Since this amount is less than the $700 per kW threshold set forth in §25.181(d)(2)(A), the avoided cost of capacity will remain at $80 per kW for 2016.

Based on the Energy Information Administration's (EIA) Table 8.2, Cost and Performance Characteristics of New Central Station Electricity Generating Technologies, the base overnight cost of an advanced combustion turbine is $641 per kW. Since this amount is less than the $700 per kW threshold set forth in §25.181(d)(2)(A), the avoided cost of capacity will remain at $80 per kW for 2015.

Based on the Energy Information Administration's (EIA) Assumptions to the Annual Energy Outlook 2013, the base overnight cost of an advanced combustion turbine is $632 per kW. Since this amount is less than the $700 per kW threshold set forth in §25.181(d)(2)(A), the avoided cost of capacity will remain at $80 per kW for 2014.

Avoided Cost of Energy

Due to the unique circumstances caused by the February 2021 winter-weather event, the Commission found good cause to grant an exception to the requirements of 16 TAC §25.181(d)(3)(A) and set the avoided cost of energy at $85 per MWh which is equivalent to $.085/kWh for the 2022 program year (Commission Staff­s Petition for a Good Cause Exception to 16 Texas Administrative Code §25.181(D)(3)(A) and to Set the Avoided Cost of Energy Under § 25.1 81 (D)(3)(A) For 2022 Electric Utility Energy Efficiency Programs, Docket No. 52871, Order (May 12, 2022)). This information was filed in Project No. 38578, Item No. 54.

Using the methodology required in 16 TAC §25.181(d)(3)(A), ERCOT's calculation of the avoided cost of energy for 2021 is $101.61/MWh, which is equivalent to $0.10161/kWh. This information was filed in Project No. 38578, Item No. 27.

Load-Weighted Average $/MWh - 2021
Load Zone Load-Weighted Average $/MWh - 2021
Summer Winter Both
LZ_HOUSTON 142.98 26.82 99.54
LZ_NORTH 147.13 28.05 100.14
LZ_SOUTH 162.07 29.19 111.02
LZ_WEST 135.89 55.52 99.99
Weighted Avg 146.87 31.74 101.61

Using the methodology required in 16 TAC §25.181(d)(3)(A), ERCOT's calculation of the avoided cost of energy for 2020 will be $0.11366/kWh.

Load-Weighted Average $/MWh - 2020
Load Zone Load-Weighted Average $/MWh - 2020
Summer Winter Both
LZ_HOUSTON 158.46 37.91 113.11
LZ_NORTH 161.32 40.75 113.46
LZ_SOUTH 157.02 56.03 117.51
LZ_WEST 161.95 43.48 110.64
Weighted Avg 159.83 42.62 113.66

As ERCOT's calculation of the avoided cost of energy shown below indicates, the 2019 avoided cost will be $0.05084/kWh.

Load-Weighted Average $/MWh - 2019
Load Zone Load-Weighted Average $/MWh - 2019
Summer Winter Both
LZ_HOUSTON 59.40 35.75 50.43
LZ_NORTH 55.42 38.24 48.62
LZ_SOUTH 62.24 52.83 58.58
LZ_WEST 58.25 38.21 49.61
Weighted Avg 58.02 39.75 50.84

As ERCOT's calculation of the avoided cost of energy shown below indicates, the 2018 avoided cost will be $0.03757/kWh.

Load Zone Load-Weighted Average $/MWh - 2018
Summer Winter Both
LZ_HOUSTON 52.25 23.65 41.65
LZ_NORTH 42.45 23.71 35.25
LZ_SOUTH 47.76 24.35 39.06
LZ_WEST 39.97 23.10 32.73
Total 46.15 23.72 37.57

As ERCOT's calculation of the avoided cost of energy shown below indicates, the 2017 avoided cost will be $0.03989/kWh.

Load-Weighted Average $/MWh - 2017
Load Zone Load-Weighted Average $/MWh - 2017
Summer Winter Both
LZ_HOUSTON 51.74 25.56 41.57
LZ_NORTH 48.35 24.48 39.06
LZ_SOUTH 47.54 26.45 39.44
LZ_WEST 49.59 25.20 39.04
Total 49.41 24.87 39.89

As ERCOT's calculation of the avoided cost of energy shown below indicates, the 2016 avoided cost will be $0.05088/kWh.

Load-Weighted Average $/MWh - 2016
Load Zone Load-Weighted Average $/MWh - 2016
Summer Winter Both
LZ_HOUSTON 50.19 46.38 48.72
LZ_NORTH 50.37 51.47 50.83
LZ_SOUTH 51.46 52.90 52.03
LZ_WEST 61.69 49.57 56.37
Total 51.49 49.99 50.88

As ERCOT's calculation of the avoided cost of energy shown below indicates, the 2015 avoided cost will be $0.05321/kWh.

Load-Weighted Average $/MWh - 2015
Load Zone Load-Weighted Average $/MWh - 2015
Summer Winter Both
LZ_HOUSTON 55.09 47.81 52.34
LZ_NORTH 50.19 53.17 51.41
LZ_SOUTH 53.61 55.91 54.50
LZ_WEST 73.04 50.57 63.31
Total 54.22 51.69 53.21

As ERCOT's calculation of the avoided cost of energy shown below indicates, the 2014 avoided cost will be $0.04619/kWh.

Load-Weighted Average $/MWh - 2014
Load Zone Load-Weighted Average $/MWh - 2014
Summer Winter Both
LZ_HOUSTON 55.78 27.66 45.47
LZ_NORTH 52.92 28.37 43.46
LZ_SOUTH 56.58 29.14 46.32
LZ_WEST 90.21 26.09 63.07
Total 57.38 28.03 46.19

Documents Available

EEIP Meeting - October 2018

EEIP Meeting - October 2017

Reports

E M & V Reports

Other Documents