Notice2023-03314
Emergency Order Issued to the Electric Reliability Council of Texas, Inc. (ERCOT) To Operate Power Generating Facilities Under Limited Circumstances in Texas as a Result of Extreme Weather
Primary source
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Published
February 16, 2023
Issuing agencies
Energy Department
Abstract
The U.S. Department of Energy (DOE or the Department) is issuing this Notice to document emergency actions that it has taken pursuant to the Federal Power Act. DOE issued an emergency order to the Electric Reliability Council of Texas, Inc. (ERCOT) to operate certain power generating facilities under limited circumstances as described further. ERCOT is the independent system operator for over 26 million people in Texas (ERCOT Region). The state of Texas experienced a severe winter weather system that caused a significant drop in temperatures. While the vast majority of generating units in the ERCOT region continued to operate without any problem, a small number of units experienced operating difficulties due to cold weather or gas curtailments. Additional generation required to serve the ERCOT Region was anticipated to result in a conflict with environmental standards and requirements, therefore DOE authorized only the necessary additional generation for ERCOT to sufficiently supply the amount of energy needed to prevent electrical disruption. Because no facilities operated above permitted levels during the emergency as authorized by the DOE order, no environmental impacts resulted from DOE issuing the order. Consequently, DOE has decided not to prepare a special environmental analysis.
Full Text
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<title>Federal Register, Volume 88 Issue 32 (Thursday, February 16, 2023)</title>
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[Federal Register Volume 88, Number 32 (Thursday, February 16, 2023)]
[Notices]
[Pages 10105-10106]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-03314]
[[Page 10105]]
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DEPARTMENT OF ENERGY
[DOE Docket No. 202-22-3]
Emergency Order Issued to the Electric Reliability Council of
Texas, Inc. (ERCOT) To Operate Power Generating Facilities Under
Limited Circumstances in Texas as a Result of Extreme Weather
AGENCY: Office of Cybersecurity, Energy Security, and Emergency
Response, Department of Energy.
ACTION: Notice of emergency action.
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SUMMARY: The U.S. Department of Energy (DOE or the Department) is
issuing this Notice to document emergency actions that it has taken
pursuant to the Federal Power Act. DOE issued an emergency order to the
Electric Reliability Council of Texas, Inc. (ERCOT) to operate certain
power generating facilities under limited circumstances as described
further. ERCOT is the independent system operator for over 26 million
people in Texas (ERCOT Region). The state of Texas experienced a severe
winter weather system that caused a significant drop in temperatures.
While the vast majority of generating units in the ERCOT region
continued to operate without any problem, a small number of units
experienced operating difficulties due to cold weather or gas
curtailments. Additional generation required to serve the ERCOT Region
was anticipated to result in a conflict with environmental standards
and requirements, therefore DOE authorized only the necessary
additional generation for ERCOT to sufficiently supply the amount of
energy needed to prevent electrical disruption. Because no facilities
operated above permitted levels during the emergency as authorized by
the DOE order, no environmental impacts resulted from DOE issuing the
order. Consequently, DOE has decided not to prepare a special
environmental analysis.
ADDRESSES: Requests for more information should be addressed by
electronic mail to <a href="/cdn-cgi/l/email-protection#7130021a32233119005f151e145f161e07"><span class="__cf_email__" data-cfemail="81c0f2eac2d3c1e9f0afe5eee4afe6eef7">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: For further information on this
Notice, or for information on the emergency activities described
herein, contact Kenneth Buell, (202) 586-3362,
<a href="/cdn-cgi/l/email-protection#571c32393932233f791522323b3b173f267933383279303821"><span class="__cf_email__" data-cfemail="68230d06060d1c00462a1d0d0404280019460c070d460f071e">[email protected]</span></a>, or by mail to the attention of Kenneth Buell,
CR-30, 1000 Independence Ave. SW, Washington, DC 20585.
The Order and all related information are available here: <a href="https://www.energy.gov/ceser/federal-power-act-section-202c-ercot-december-2022">https://www.energy.gov/ceser/federal-power-act-section-202c-ercot-december-2022</a>.
SUPPLEMENTARY INFORMATION:
Background
Section 202(c) of the Federal Power Act
The Department is issuing this Notice pursuant to 10 CFR
1021.343(a) to document emergency actions taken in accordance with
section 202(c) of the Federal Power Act (FPA) (16 U.S.C. 824a(c)). FPA
section 202(c) provides that ``[d]uring the continuance of any war in
which the United States is engaged, or whenever the [Secretary of
Energy] determines that an emergency exists by reason of a sudden
increase in the demand for electric energy, or a shortage of electric
energy or of facilities for the generation or transmission of electric
energy, or of fuel or water for generating facilities, or other causes,
the [Secretary of Energy] shall have authority, either upon [her] own
motion or upon complaint, with or without notice, hearing, or report,
to require by order such temporary connections of facilities and
generation, delivery, interchange, or transmission of electric energy
as in [her] judgment will best meet the emergency and serve the public
interest.''
1. Request for Emergency Order From ERCOT
On December 23, 2022, ERCOT filed a Request for Emergency Order
Under section 202(c) of the Federal Power Act (Application) to take
``measures to ensure the supply of generation will continue to be
sufficient to meet system demand and reserve requirements'' in response
to the severe winter weather impacting much of the United States. The
temperature drop, accompanied by high winds in excess of 40 mph
resulted in wind chill values across the state generally below ten
degrees Fahrenheit, with some areas of Texas experiencing wind chills
values well below zero degrees.
In its Application, ERCOT noted that a small number of generating
units experienced operating difficulties due to cold weather or gas
curtailments and that one generation owner was limited in its power
output due to emissions, effluent, and other limits established by
federal environmental permits, or that, due to continuing cold weather
conditions, may become subject to such operational limitations.
Specifically, ERCOT indicated that the operation of gas-fired
generators may be impacted by permit restrictions on nitrogen oxide,
carbon monoxide, and ammonia emissions. ERCOT requested the authority
to authorize the provision of additional energy from the units
identified in Exhibit A of its Application, as well as any other
generating units subject to emissions or other permit limitations,
subject to the Order (``Specified Resources''). ERCOT stated that the
emergency order it was requesting could result in exceedances of
environmental limits. Given the permit limits of the Specified
Resources, ERCOT anticipated that the additional capacity may not be
made available absent an order under FPA section 202(c).
2. ERCOT Order
On December 23, 2022, the Under Secretary of Energy for
Infrastructure, acting pursuant to Delegated authority, issued Order
No. 202-22-3 (the Order). As set forth in the Order, the Under
Secretary of Energy for Infrastructure found that because of the
expected shortage of electric energy, shortage of facilities for the
generation of electric energy, and other causes in Texas and within the
ERCOT region, the issuance of the Order would meet the emergency and
serve the public interest.
The Order authorized ERCOT to dispatch the Specified Resources for
the period beginning with the issuance of the Order on December 23,
2022, to 10:00 a.m. Central Time on December 25, 2022, under the
conditions set forth in the Order, including the following:
(i) For any Generation Resource or Settlement Only Generator whose
operator notifies ERCOT that the unit is unable, or expected to be
unable, to produce at its maximum output due to an emissions or other
limit in any federal environmental permit at any point before 12:00
p.m. Central Time on Saturday, December 24, 2022, and between 18:00
(6:00 p.m.) Central Time on Saturday, December 24, 2022 and 10:00
Central Time on Sunday, December 25, 2022, the unit would be allowed to
exceed any such limit only during any period for which ERCOT has
declared an Energy Emergency Alert (EEA) Level 2 or Level 3.\1\ This
incremental amount of restricted capacity would be offered at a price
no lower than $1,500/MWh. Once ERCOT declares that the EEA Level 2
event has ended, the unit would be required to immediately return to
operation within its permitted limits. And at all other times, the unit
would be required to operate within its permitted limits.
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\1\ For more information on EEA levels, see <a href="https://nercstg.nerc.com/pa/rrm/ea/Pages/Energy-Emergency-Alerts.aspx">https://nercstg.nerc.com/pa/rrm/ea/Pages/Energy-Emergency-Alerts.aspx</a>.
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(ii) For any Generation Resource whose operator notifies ERCOT that
the unit is offline or would need to go offline at any point before
12:00 p.m. Central Time on Saturday, December 24, 2022, and between
18:00 (6:00 p.m.) Central Time on Saturday, December 24,
[[Page 10106]]
2022 and 10:00 a.m. Central Time on Sunday, December 25, 2022 due to an
emissions or other limit in any federal environmental permit, ERCOT may
issue a Reliability Unit Commitment (RUC) instruction directing the
unit operator to bring the unit online, or to keep the unit online, and
to operate at the minimum level at which the Resource can be
sustainably operated. In this circumstance, the operator would be
allowed to make all of the unit's capacity available to ERCOT for
dispatch during any period for which ERCOT has declared an Energy
Emergency Alert (EEA) Level 2 or Level 3. This incremental amount of
restricted capacity would be offered at a price no lower than $1,500/
MWh. Once ERCOT declares that such an EEA Level 2 event has ended, the
unit would be required to immediately return to operating at a level
below the higher of its minimum operating level or the maximum output
allowable under the permitted limit.
The Order required that ERCOT provide a report by January 25, 2023,
for the dates between December 23, 2022 and December 25, 2022,
inclusive on which the Specified Resources were operated, the hours of
operation, and exceedance of permitting limits, including sulfur
dioxide, nitrogen oxide, mercury, carbon monoxide, and other air
pollutants, as well as exceedances of wastewater release limits. The
report must include, ``(i) emissions data in pounds per hour for each
Specified Resource unit, for each hour of the operational scenario, for
CO, NO<INF>X</INF>, PM<INF>10</INF>, VOC, and SO<INF>2</INF>; (ii)
emissions data must include emissions (lbs./hr.) calculated consistent
with reporting obligations pursuant to operating permits, permitted
operating/emission limits, and the actual incremental emissions above
the permit limits; (iii) the number and actual hours each day that each
Specified Resource unit operated in excess of permit limits or
conditions, e.g. ``Generator #1; December 24, 2022; 4 hours; 04:00-
08:00 CT''; (iv) the amount, type and formulation of any fuel used by
each Specified Resource; (v) all reporting provided under the Specified
Resource's operating permit requirements over the last three years to
the United States Environmental Protection Agency or local Air Quality
Management District for the location of a Specified Resource that
operates pursuant to the Order; (vi) additional information requested
by DOE as it performs any environmental review relating to the issuance
of the Order; and (vii) information provided by the Specified Resource
complied with applicable environmental requirements to the maximum
extent feasible while operating consistent with emergency conditions.
The Order also requires ERCOT to submit a final report by February
25, 2023, with any revisions to the information reported on January 25,
2023. In this case, because no facilities operated above permitted
levels during the emergency as authorized by the DOE order, no
environmental impacts resulted from DOE issuing the order.
Consequently, DOE has decided not to prepare a special environmental
analysis.
Signing Authority
This document of the Department of Energy was signed on February
10, 2023, by Puesh M. Kumar, Director for the Office of Cybersecurity,
Energy Security, and Emergency Response, pursuant to delegated
authority from the Secretary of Energy. That document with the original
signature and date is maintained by DOE. For administrative purposes
only, and in compliance with requirements of the Office of the Federal
Register, the undersigned DOE Federal Register Liaison Officer has been
authorized to sign and submit the document in electronic format for
publication, as an official document of the Department of Energy. This
administrative process in no way alters the legal effect of this
document upon publication in the Federal Register.
Signed in Washington, DC, on February 13, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-03314 Filed 2-15-23; 8:45 am]
BILLING CODE 6450-01-P
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