Why some large loads insist on paying their way
Some of the largest electricity buyers in the world have a message for Texas: charge us. The Texas Energy Buyers Alliance was the first organization to propose that large loads pay transmission charges tied to their approved capacity. The idea is to protect other customers as the grid builds out.
The scale explains why. ERCOT estimates up to 110 gigawatts of new large loads could seek to connect over the next five years, more than double today’s system peak of about 86 gigawatts. Before any of that generation arrives, about $37 billion in transmission costs are already baked into the system, pushing rates up roughly 3.5 percent a year for every customer. The open question is how much of the new bill supports the new demand.
On this episode of the Energy Capital Podcast, Matt Boms talks with Bryn Baker, senior director of policy for organized markets for the Corporate Energy Buyers Association and leader of the Texas Energy Buyers Alliance, the state chapter representing large energy buyers. Baker walks through TEBA’s proposal: charge minimum demand charges on large loads at levels that studies suggest would leave other customers’ rates neutral or lower.
Chapters:
00:00 Introduction and who TEBA represents
02:47 The corporate buyer market and Texas' share
04:13 Why Texas beats PJM for large loads
06:45 What data centers offer the average ratepayer
10:02 The batch process and batch zero
12:25 Grading the compromise and the qualification problem
15:33 Transmission planning and the case for 765 kV
19:13 4CP vs 12CP and who pays for the wires
23:05 Energy attribute certificates: the sleeper story
26:54 EACs and unlocking demand flexibility
28:19 The EAC program: process, timeline, and what's novel
30:10 What makes Baker optimistic
32:13 The real mood in the market
35:16 Renewables, batteries, and keeping costs down
37:09 Rethinking economic transmission planning
This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.texasenergyandpower.com/subscribe
The scale explains why. ERCOT estimates up to 110 gigawatts of new large loads could seek to connect over the next five years, more than double today’s system peak of about 86 gigawatts. Before any of that generation arrives, about $37 billion in transmission costs are already baked into the system, pushing rates up roughly 3.5 percent a year for every customer. The open question is how much of the new bill supports the new demand.
On this episode of the Energy Capital Podcast, Matt Boms talks with Bryn Baker, senior director of policy for organized markets for the Corporate Energy Buyers Association and leader of the Texas Energy Buyers Alliance, the state chapter representing large energy buyers. Baker walks through TEBA’s proposal: charge minimum demand charges on large loads at levels that studies suggest would leave other customers’ rates neutral or lower.
Chapters:
00:00 Introduction and who TEBA represents
02:47 The corporate buyer market and Texas' share
04:13 Why Texas beats PJM for large loads
06:45 What data centers offer the average ratepayer
10:02 The batch process and batch zero
12:25 Grading the compromise and the qualification problem
15:33 Transmission planning and the case for 765 kV
19:13 4CP vs 12CP and who pays for the wires
23:05 Energy attribute certificates: the sleeper story
26:54 EACs and unlocking demand flexibility
28:19 The EAC program: process, timeline, and what's novel
30:10 What makes Baker optimistic
32:13 The real mood in the market
35:16 Renewables, batteries, and keeping costs down
37:09 Rethinking economic transmission planning
This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.texasenergyandpower.com/subscribe
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