Project #38578

Energy Efficiency Implementation Project under 16 TAC §25.181

Energy Efficiency Stakeholder Working Group 2023

• Stakeholder Input Survey Analysis
• Stakeholder Working Groups Meeting Information
• Stakeholder Working Group Agendas, Presentations, and Recording Information

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

• Avoided Cost of Capacity and Energy for the 2021 Program Year
• EM&V Frequently Asked Questions
• HB 3693
• Proposed Updates to Deemed Savings
• 2010 Program Results and 2011 Program Plans
• Energy Efficiency Cost Recovery Filings

EEIP Meeting - October 2018

• Evaluation Measurement and Verification Contractor Results EEIP Oct. 2018
• EUMMOT Technical Reference Manual Update EEIP Oct. 2018
• EPRI 2018 National Energy Efficiency Potential Assessment Study
• SPEER IOU Energy Efficiency Programs Collaborative EEIP Oct. 2018

EEIP Meeting - October 2017

• Frontier Associates - EUMMOT
• Texas Energy Engineering Services, Inc. - Evaluation, Monitoring and Verification
• Texas Energy Engineering Services, Inc. - TRM Approach

Reports

• Energy Efficiency Plans and Reports - 2022
• PUC Report to the Texas Legislature Concerning Combined Heat and Power in Texas - Project Number 34934
• Study of the Potential for Energy Efficiency Measures under PURA 39.905 - Project No. 35266
• Estimation of Annual Reductions of NOx Emissions in ERCOT for the HB3693 Electricity Savings Goals - Project No. 35266
• Independent Audit of the Texas Energy Efficiency Programs in 2003 and 2004 - Final Report - Project No. 30170

E M & V Reports

• Annual Statewide Portfolio Report for Program Year 2017 (.Zip)
• Texas Technical Reference Manual (TRM) Version 5.0 Final Compressed Files (.Zip)
• Annual Statewide Portfolio Report for Program Year 2016 (.Zip)
• Texas Technical Reference Manual (TRM) Version 4.0 Final Compressed Files (.Zip)
• Annual Statewide Portfolio Report for Program Year 2015 (.Zip)
• Texas Technical Reference Manual (TRM) Version 2.1 Updates
• TRM Version 2.1 Compressed Files (.Zip)
• Texas PUC Statewide Annual Portfolio Report for 2013 Vol-1
• Texas PUC Statewide Annual Portfolio Report for 2013 Vol-2
• Texas Technical Reference Manual Version 1
• Texas PUC Statewide Impact Evaluation Annual Portfolio Report for 2012

Other Documents

• Guideline for Vendor Presentations at EEIP Meetings