Energy Efficiency Implementation Project under 16 TAC § 25.181
Staff Assigned:
Therese Harris, Infrastructure Division
512-936-7378
therese.harris@puc.texas.gov
Energy Efficiency Stakeholder Working Group 2023
Program Goals Working Group
1st Session Slides | 2nd Session Slides | 3rd Session Slides
Low-Income & Underserved Segments Working Group
1st Session Slides | 2nd Session Slides | 3rd Session Slides
Demand Response Working Group
1st Session Slides | 2nd Session Slides | 3rd Session Slides
Program Planning Working Group
1st Session Slides | 2nd Session Slides | 3rd Session Slides
EEIP Meeting - October 2022
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 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 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 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 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 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 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 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