Generators and Retail Providers Object to AEP Proposal for Utility-Scale Battery Facilities

Generators and Retail Providers Object to AEP Proposal for Utility-Scale Battery Facilities

Apr 3, 2017

by Margarita Fournier; Copyright 2016 by Competitive Assets, LLC.  All rights reserved

AEP Texas North Company (TNC) filed a request for regulatory approvals related to the installation of utility-scale battery facilities on September 16, 2016. The proposal is to install a lithium-ion battery in two locations on its distribution system.  TNC argues that it complies with Texas law and that the facilities will be considered distribution assets whose cost will be eligible for inclusion in TNC’s distribution cost of service.  Furthermore, TNC argues that this solution is less costly than other system upgrades.  On March 31, 2017, a group of generators and retail electric providers filed a motion for summary decision in which they argue that the ownership and operation of the facilities proposed by TNC the Public Utility Regulatory Act (PURA) and the PUC’s rules barring transmission and distribution utilities from participating in the market for electricity. Further, they state that the proposed assets are generation assets.  The objecting entities in this docket, Docket No. 46368, include Luminant Energy Company LLC, TXU Energy Retail Company LLC, Alliance for Retail Markets, NRG Companies, Texas Energy Association for Marketers, Calpine Corporation, Texas Competitive Power Advocates, Texas Industrial Energy Consumers, and the Office of Public Utility Counsel.

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