No Industry Interest in Alternatives to CPS Energy Plant Shutdown

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ENERGY Noticias

ERCOT,CPS Energy,Power Plants

The Electric Reliability Council of Texas (ERCOT) received no bids for alternative power sources to keep the Texas grid stable after two aging CPS Energy plants are shut down. This is due to a lack of interest in relocating portable generators from Houston.

The state grid operator is seeing no industry interest in providing alternatives to relocating a fleet of portable generators to San Antonio so it can allow two of CPS Energy’s aging gas-powered plants to shut down this year as planned. The Electric Reliability Council of Texas set a Dec. 30 deadline for market participants to submit questions ahead of making pitches for alternative power sources. None were filed.

Typically, companies planning to submit a bid send questions for response before the final deadline, which is in mid-January. ERCOT opened the bid process after back-and-forth with CenterPoint Energy and CPS over the use of the Houston utility’s portable generators. The grid operator’s aim was to ensure there weren't other more cost effective options. An earlier bid process also failed to draw interest, but the industry then was being asked up to come up with a plan that could rival the costs of keeping the city-owned utility’s Braunig Power Station units running for up to two more years. Whatever plan ERCOT’s board approves will be paid for by utility customers across the state because they’re needed to ensure the statewide grid’s stability. Chad Seely, ERCOT’s general counsel, told commissioners last month the grid operator was still assessing how much it would cost to use the generators in San Antonio. Already, ERCOT’s board has approved keeping the largest of the three Braunig units open past its planned March retirement — and customers across the state are paying the tab for that, too. Centerpoint’s generators — while technically mobile — are not easy to set up, a fact that’s made them the target of criticism since Hurricane Beryl tore through Houston in July, causing widespread power outages. Because the units can’t be quickly assembled, they sat idle while Houstonians sat for days without powe

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