The Texas grid operator said losing the three gas-fired units’ 859-megawatt output would have a “material impact” on the grid and its reliability.
The state grid operator may be putting a stop to CPS Energy’s plans to shutter part of its aging Braunig Power Station early next year. In a notice Monday, the Electric Reliability Council of Texas said losing the 859-megawatt output from Braunig’s three oldest natural gas-fired units would have a “material impact” on the grid and its reliability.
CPS has said the plants are expensive to operate and that it would only be racking up more costs with upgrades to reduce their emissions. The results of ERCOT’s reliability study come as it prepares for what’s expected to be another record-breaking summer of demand on the already-strained statewide grid. RELATED: CPS asks ERCOT to approve shutdown of Braunig power units as clean energy transition rolls on CPS Energy’s request to shutter the Braunig units came up Monday during an ERCOT subcommittee meeting, hours after the so-called market notice was posted online. In its next steps, ERCOT will determine whether there are other resources that could substitute for Braunig’s megawatts, Chief Operating Officer Woody Rickerson said during Monday’s meeting of the reliability and markets committee. “CPS gave us more time to solve this problem, which we’re grateful for,” said ERCOT General Counsel Chad Seeley, referring to the city-owned utility filing its plans to shutter the plants in mid-March, earlier than required. In a statement Monday evening, CPS said it expects the grid operator will allow the generating units to be retired by March 31 if it can replace their capacity. “We will continue to have collaborative discussions with ERCOT during their review process,” a spokesperson said. The city-owned utility has already planned to expand its generation fleet with new, more efficient natural gas plants and by adding more solar, wind and battery capacity. “The retirement of the Braunig units is part of our Board approved generation plan,” CPS said in a statement in March after telling ERCOT of its plans to shutter the plants, which typically produce enough electricity to power about 170,000 homes on the statewide grid. “These power plants are nearing their operational end of life.” READ NEXT: ERCOT admits Texas grid faces risk of ‘cascading outages’ in wait for new CPS transmission line The power station began operating in 1966. As part of its protocol, ERCOT is now issuing a request for proposals for what it calls more “cost-effective alternatives” to meet demand. Seely said ERCOT would prefer to come up with a timeline that meets its protocol while giving the grid operator time to work with CPS and get feedback from the Public Utility Commission, which meets Thursday. The ERCOT board meets Tuesday. Any agreement would be a transition plan, not a long-term solution. “Ultimately, whatever the timeline is, we would bring all that information back to the committee and the board,” Seeley said, “for the committee and the board to do a true evaluation of ERCOT benefits relative to the reliability concern that we are evaluating the cost of … and what those benefits would be for the system.” Eventually, ERCOT could come to an agreement that keeps CPS operating the Braunig units but paying the utility based on the added costs to keep them going. As part of the process, CPS would have to give the grid operator detailed cost estimates. Any added costs, ultimately, would be spread across Texas ratepayers. The ERCOT board and PUC would need to approve any such agreement, in which it would consider the number of customers affected and any potential economic impact to customers. RELATED: September grid emergency ‘uncovers some deficits’ in how ERCOT manages power, renewable energy Shortly after filing plans to close the Braunig units, CPS announced it was adding 1,710 megawatts of natural gas-fired generating capacity through a $785 million deal to acquire three plants in Laredo and Corpus Christi from Talen Energy. It was the city-owned utility’s first acquisition of gas-fired plants in more than a decade. CPS is planning to shutter its coal-fired J.K. Spruce 1 Power Plant by 2028 but has not yet filed those plans with ERCOT. It also is making plans to convert the newer Spruce 2 Power Plant to run on natural gas. CPS last shuttered a coal plant at the end of 2018. The J.T. Deeley Power Plant, which also produced more than 800 megawatts of power at full capacity, had been dubbed by critics as “the dirty Deeley” because of its high rate of carbon dioxide emissions.
CPS Energy Public Utility Commission Board Talen Energy Chad Seeley Woody Rickerson Seely J.K. Deeley J.T. Texas Deeley Power Plant Braunig Power Station Laredo Corpus Christi Braunig Spruce 2
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