Marginal Losses

 At the request of the Public Utility Commission of Texas (PUC), ERCOT has completed its assessments of the costs and benefits associated with incorporating marginal transmission system losses into its market dispatch and pricing mechanisms.

In June 2018, ERCOT released its benefits analysis of marginal losses, which considers cost savings to consumers and generators. ERCOT’s analysis was performed using the same model and economic criteria used to assess future transmission projects in the 2017 Regional Transmission Plan. However, the model was updated to reflect recent plant retirements in the ERCOT region and also used a revised natural gas forecast for 2020.

To help stakeholders better understand the impacts of adding marginal losses into its market dispatch and pricing mechanisms, ERCOT created an online repository of questions and responses, comments and the software and data used to compile the benefits analysis in accordance with PUC Project No. 48539.