Blackouts: ERCOT wants in on power plant secrets

Just how secret are the inner workings of the Texas electric power industry? Even the state’s main grid operator, which coordinates how power plants operate, isn’t privy to the details of how they prepare for severe weather.

Following Hurricanes Rita and Katrina, the Texas Public Utility Commission set up new rules requiring power plant operators to file plans on how they are prepared for a variety of calamities: hurricanes, winter storms, pandemics, zombie hordes (just kidding, zombies are exempt).

The plans have to be filed with the PUC but are marked “confidential” because plant operators are concerned they will reveal competitive details about their equipment. For example, if the plans mentioned weather protection for a certain kind of equipment that impacts how quickly a unit can come online, that kind of information is valuable to a competing power plant trying to sell power to the same customers.

The Feb. 2 power emergency that led to rolling blackouts throughout the state appears (at this point) to have occurred because winterization plans at so many power plants failed to hold up.

The Electric Reliability Council of Texas, which coordinates the state’s main power grid, can’t actually look at those weatherization plans without special permission, however.

ERCOT first filed a Freedom of Information Act Request with PUC asking for the information, but withdrew that request when it became clear how complicated that effort would be. Essentially PUC would have to get each plant to waive its confidentiality to hand over the information, and any stragglers might have to be referred to the Attorney General’s office for an opinion.

So Thursday afternoon ERCOT went directly to the power plant operators, asking them for the information (see it below).

Unlike the list of power plants that went down, however, this information will likely continue to be confidential.

Power plant operators have until Feb. 24 to comply.

INTENDED AUDIENCE: Qualified Scheduling Entities (QSEs) representing Resource Entities, Resource Entities (REs)

DAY AFFECTED: February 24, 2011

LONG DESCRIPTION: In PUC Project No. 34202, the Public Utility Commission of Texas (Commission) adopted a new version of PUC Substantive Rule 25.53, Electric Service Emergency Operations Plans, which required “[e]ach market entity . . . to file with the commission a copy of its emergency operations plan or a comprehensive summary of its emergency operations plan . . . by May 1, 2008” and any changes to such plans no later than 30 days after such changes take effect. See PUC Subst. R. § 25.53(b).

During the week of January 31, 2011, the ERCOT Region experienced a weather-related event which resulted in implementation of Energy Emergency Alert (EEA) procedures under the ERCOT Protocols. Electric Reliability Council of Texas, Inc. (ERCOT) continues to evaluate the circumstances that led to the implementation of EEA procedures on February 2, 2011. ERCOT respectfully requests that QSEs representing Resource Entities or Resource Entities submit those emergency operations plans or the comprehensive summaries of the emergency operations plans that were on file with the Commission and effective for Operating Day February 2, 2011 to ERCOT Legal.

If a Market Participant believes its emergency operations plan is confidential, then the information should be designated as “Protected Information” in writing by the Market Participant at the time the information is provided to ERCOT Legal. See Protocol Section 1.3.1.1(p). Otherwise, any information will not be considered “Protected Information” under the ERCOT Protocols and will be available for public disclosure.

ACTION REQUIRED: ERCOT requests that Market Participants submit copies of their emergency operations plan or comprehensive summaries of the emergency operations plans by no later than Close of Business (COB) on Thursday, February 24, 2011 to the following contact: ERCOT Legal Department, Attn: Chad V. Seely, Assistant General Counsel, 7620 Metro Center Drive, Austin, TX 78744. Electronic copies may be submitted to cseely@ercot.com.