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Power generation reserves in Texas, USA are forecast to fall below the state’s target for summer 2013, increasing the risk of blackouts during the hottest days, according to the Electric Reliability Council of Texas (ERCOT). ERCOT said in a report that reserves are expected to be at 13.2 per cent for the summer of 2013, below the 13.75 per cent target. ERCOT, which serves 85 per cent of the state’s power demand, said reserves will drop to 10.9 per cent in the summer of 2014.
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Trip Doggett, Chief Executive Officer for ERCOT, said: “The projected reserve margin for summer 2013 has dropped slightly since May, but we are seeing healthier reserve margins in future years.” He said that the grid operator used a more conservative economic report than in its May forecast, as growth has slowed recently.
ERCOT said that new power plants under construction may push reserves to 13.6 per cent, if they can be brought on-line by August 2014. In 2015, generation reserves are forecast at 10.5 per cent.
Texas regulators are considering changes to the power market to spur construction of additional power plants, including adding capacity payments, in which generators are paid to make sure their units are available to meet peak demand. In October, the Public Utility Commission of Texas voted to increase the price cap for wholesale electricity through 2015.