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PUC Chair: ERCOT Should Adopt Changes Not Allowing Transactions To Mexico If Jurisdiction At Risk

December 14,2017

In a memo in advance of today's open meeting updating the Commission on ERCOT jurisdictional issues in light of the changing Mexican grid (which could lead to WECC power flowing to Texas, implicating FERC jurisdiction), Texas PUC Chair DeAnn Walker noted that Mexico has announced its intention to interconnect the electric system of Baja California with the Mexican national network with a 1.5-gigawatt transmission line, with the project is expected to be operational in 2021.

"Based upon this information, I believe that the Commission should begin to take steps to address the jurisdictional concerns until a more global solution can be implemented," Walker wrote

"After discussions with the Commission Staff and ERCOT management, I believe it is prudent to instruct ERCOT to begin the process of adopting changes to the Protocols to provide clarity that ERCOT will not authorize transactions across the DC ties into Mexico in the event that the jurisdiction of ERCOT is at risk," Walker wrote

"I believe ERCOT already has this authority embedded in its Standard Form Market Participant Agreement, but clarity on this point could be useful to the market. I believe that the modifications should also be clear that ERCOT has the authority to require the breakers to the transmission lines that could cause any such transactions to potentially occur to be opened under the same circumstances," Walker wrote

"It is my intention for ERCOT to process the modifications to the Protocols in the most expeditious manner possible," Walker wrote

Texas   ERCOT   Mexico  

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