Today, Life:Powered, a project of the Texas Public Policy Foundation (TPPF), has submitted a comment to the Public Utility Commission of Texas (PUC) regarding the PUC's proposed rule on interconnection allowances for generators. The aim of this proposed rule, in accordance with H.B. 1500 passed during the 88th Legislature, is to reduce the cost burden on Texas ratepayers while ensuring the continued development of reliable generation.
In its comment, Life:Powered recommends the implementation of a flat allowance per interconnection project. According to Life:Powered, if this approach had been adopted in the past, Texas ratepayers would have saved an impressive $205 million over the course of four years.
Brent Bennett, a representative from TPPF, highlighted the increasing burden on Texas ratepayers due to the rising transmission cost of service (TCOS). Over the past decade, this cost has more than doubled from $1.7 billion to $4.5 billion. Bennett attributes a portion of this increase to the growing interconnection costs associated with wind and solar generation integrated into the ERCOT grid in recent years. H.B. 1500 seeks to address this issue.
Bennett emphasized the need for the PUC's proposed rule to strike a balance between reducing costs for ratepayers and fostering the development of new dispatchable generation. He expressed concern that the current tiered allowance system, which favors generators connecting at higher voltages, may primarily benefit wind and solar projects located farther from load centers. According to Bennett, this approach undermines the intent of H.B. 1500. Instead, he believes that a single allowance at a level between the existing tiers would better achieve the desired balance.
Life:Powered's comment can be accessed here.
In summary, Life:Powered has submitted a comment to the PUC regarding the proposed rule on interconnection allowances for generators. The organization recommends a flat allowance per interconnection project, emphasizing the potential cost savings for Texas ratepayers. Brent Bennett of TPPF highlights the increasing transmission cost of service and its connection to interconnection costs for renewable generation. He suggests that the PUC's proposed rule should strike a balance between reducing costs for ratepayers and promoting the development of new dispatchable generation.
To learn more, click on this link: https://www.texaspolicy.com/press/tppfs-lifepowered-submits-comment-on-pucs-proposed-interconnection-allowances-rule
