Invenergy: Texas Economic Output $7B Higher Under Current Market Structure vs. Marginal Losses
Invenergy LLC filed with the Texas PUC a report entitled "The Long-term Impacts of Marginal Losses on Texas Electric Retail Customers" prepared by PA Consulting Group, Inc.
Invenergy said that the report shows that the current market structure provides significantly greater benefits to customers going forward compared to including marginal losses in LMP formation.
The report says that, over the 2018-2037 timeframe:
• Total economic output would be $7.1 billion higher under the current market structure, with $5.8 billion of the additional economic output attributable to energy cost savings and $1.3 billion attributable to higher construction and operations expenditures.
• Under the current market structure, the ERCOT system would experience $5.1 billion of total future production cost savings and nearly $4.6 billion of total future energy cost savings over the next 20 years due to higher levels of low variable cost power generation.