The power delivery system in Texas is in “excellent” shape compared with other states, but that said, reducing transmission constraints remains key to continued reliability, according to the latest study by the state’s grid operator, the Electricity Reliability Council of Texas (ERCOT). As ERCOT noted, most of the additional transmission facilities it expects to need in the next few years would be required whether or not the state had chosen to deregulate its electricity market because of growth in major regions, as well as strong demand.

In the detailed report published Oct. 1, ERCOT noted that transmission constraints alone cost the state’s consumers more than $250 million between July 31, 2001 and May 31, 2002. However, costs could have been even higher because of factors not considered, including an increased risk of service interruptions resulting from constraints, as well as the use of plants that are less efficient and higher polluting to relieve the congestion.

“Retail competition is strong in Texas,” ERCOT said. “Over 25% of customer electric demand has switched in the ERCOT region where customer choice is in effective. Over the past 10 years, competition has been introduced into electricity markets to lower costs to consumers by spurring needed investments in generation and increasing the efficiency of operation.”

However, the daily transmission constraints have to be solved, said the council. “The transmission system must be flexible enough, every second of the day, to accommodate the growing demand for reliable and affordable electricity.” ERCOT, whose area covers about 200,000 square miles, is diverse in many regards, topographically, climatologically and demographically. The counties range in population from 67 people living in Loving County in West Texas to more than 3.5 million in Harris County, where Houston is located.

ERCOT and the state’s transmission service providers are moving forward on planning additions that will be necessary to maintain reliable service and to address transmission bottlenecks. In 2003, ERCOT found three Commercially Significant Constraints in the system: West Texas to North Texas, whose primary corridor is Morgan Creek to Abilene to Graham to Parker; South Texas to North Texas, whose primary corridor is Marion to Zorn to Austrop to Sandow to Temple to Waco to Venus; and South Texas to Houston, whose primary corridor is Corpus Christi to South Texas Project to Houston.

ERCOT also has identified five Local Constraints in Dallas/Fort Worth, Corpus Christi, Laredo, the Rio Grande Valley and parts of West Texas (McCamey, San Angelo, Morgan East and Wind Farms).

To address the congestion, ERCOT and the service providers have completed 10 major projects across the state, and there are nine other projects that are currently under development to help mitigate constraints. There also are three regional planning groups that will determine future actions to serve load and resolve constraints in 10 areas that currently have major projects under development.

“Recent announcements on construction of new generation capacity and retirement of older, less efficient units demonstrate the ERCOT market is working effectively,” according to the report. “However, competition is also changing the landscape,” it noted, which has led to the following:

“Electric use is continuing to grow, reflecting the transformation of our economy to a high-technology information base that relies on electricity,” said ERCOT. “Electricity, though, is not a commodity that can be easily stored, and our transmission infrastructure is at the heart of our economic well-being. An open, coordinated transmission planning process that incorporates transmission upgrades to relieve constraints, unwavering reliability requirements, and the interconnection of new supply (including environmentally-friendly units) will be of paramount importance to the future of Texas.”

To read the full report, “2002 Report on Existing and Potential Electric System Constraints and Needs Within the ERCOT Region,” visit the web site at www.ercot.com. The report is found in the “News Room” section under “Reports/Important Documents.”

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