The Gist
ERCOT demand response has typically been characterized as either in response to transmission cost allocation (4CP) or wholesale price allocation.
4CP. Transmission charges are paid by distribution service providers and transmission level wholesale service customers based on their withdrawal from the transmission system during the Four Coincident Peak (4CP) fifteen-minute intervals, one each in June, July, August, and September. They are significant, on the order of tens of thousands of dollars for each MWh during those fifteen minute intervals. Historically most demand response in ERCOT is in response to predicted 4CP intervals.
High Prices. Prices in ERCOT can get to the level of $5000/MWh. At those levels some demand will voluntarily curtail.
Important Actions
Reference
ERCOT’s 2022 presentation on Demand Response
Meeting Notes
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