[Federal Register Volume 88, Number 189 (Monday, October 2, 2023)]
[Notices]
[Pages 67740-67742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21719]
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DEPARTMENT OF ENERGY
[DOE Docket No. 202-23-1]
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 in this section. ERCOT is the independent system operator for
over 26 million people in Texas (ERCOT Region). The State of Texas
experienced a sustained heat wave that resulted in abnormally high
electric demand. Because the additional generation required to serve
the ERCOT Region was anticipated to result in a conflict with
environmental standards and requirements, DOE authorized only the
necessary additional generation for ERCOT to sufficiently supply the
amount of energy needed to prevent electrical disruption. However,
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 [email protected].
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,
[email protected], to [email protected], 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: https://www.energy.gov/ceser/federal-power-act-section-202c-ercot-september-2023.
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.''
[[Page 67741]]
1. Request for Emergency Order From ERCOT
On September 7, 2023, ERCOT filed a Request for Emergency Order
Under Section 202(c) of the Federal Power Act (Application) to allow
ERCOT to operate certain electric generating units up to their maximum
generation output levels to preserve the reliability of the bulk power
system.
In its Application, ERCOT noted that the region was experiencing
extreme heat conditions resulting in especially high electric demand.
On September 6, 2023, ERCOT reported that it established a September
load record, and, on the same day, it declared an Energy Emergency
Alert (EEA) Level 2 due to low reserve margins coupled with a post-
contingency transmission overload. ERCOT observed high loading on a
certain transmission element in similar circumstances in the weeks
preceding September 7, 2023, and assessed that a post-contingency
overload could occur again during the later afternoon and evening hours
of September 7, 2023, and September 8, 2023. Such an overload would
have required ERCOT to reduce output of resources impacting the loading
on that element, exacerbating ERCOT's scarcity concern. The extreme
heat and high electric demand were expected to continue through
September 8, 2023. 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 September 7, 2023, the Secretary of Energy issued Order No. 202-
23-1 (the ERCOT Order). As set forth in the ERCOT Order, the Secretary
for Energy found that given the emergency nature of the expected load
stress, the responsibility of ERCOT to ensure maximum reliability on
its system, and the ability of ERCOT to identify and dispatch
generation necessary to meet the additional load, 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 September 7,
2023, for the hours of 5 p.m. through 9 p.m. CDT and 5 p.m. and 9 p.m.
CDT on Friday, September 8, 2023, 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, the unit would be allowed to
exceed any such limit only between the hours of 5 p.m. and 9 p.m. CDT
on Thursday, September 7, 2023, and 5 p.m. and 9 p.m. CDT on Friday,
September 8, 2023, and only if ERCOT has declared an EEA Level 2 or
Level 3 that remained in effect during all or any part of either such
period. This incremental amount of restricted capacity would be offered
at a price no lower than $1,500/MWh. Once ERCOT declares that it is no
longer in an EEA Level 2 or 3, or at 9 p.m. CDT, whichever occurs
first, the unit would be required to return to operation within its
permitted limits as expeditiously as possible. And at all other times,
the unit would be required to operate within its permitted limits.
(ii) For any Generation Resource whose operator notifies ERCOT that
the unit will be offline at any point between the hours of 5 p.m. and 9
p.m. CDT Thursday, September 7, 2023, and 5 p.m. and 9 p.m. CDT Friday,
September 8, 2023, or would need to go offline during either such
period, due to an emissions or other limit in any Federal environmental
permit, if ERCOT has declared or expects to declare an EEA Level 2 or
Level 3 that is expected to be in effect during all or any part of that
period, then ERCOT may issue a Reliability Unit Commitment (RUC)
instruction in advance of that period or during that period 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. If ERCOT issues the instruction in advance of
either such period, then ERCOT shall endeavor to commit the unit at a
time that allows the unit to reach its low sustained limit no earlier
than the beginning of that period or the start of any EEA Level 2,
whichever is expected to occur last. An operator subject to RUC
instruction described herein would be allowed to make all of the unit's
capacity available to ERCOT for dispatch during any period between the
hours of 5 p.m. and 9 p.m. CDT on Thursday, September 7, 2023, and 5
p.m. and 9 p.m. CDT Friday, September 8, 2023, for which ERCOT has
declared an EEA Level 2 or Level 3. This capacity would be offered at a
price no lower than $1,500/MWh. Once ERCOT issues a declaration
indicating that it is no longer in an EEA Level 2 or 3, or at 9 p.m.
CDT, whichever occurs first, the unit would be required to return to
operation within its permitted limits as expeditiously as possible
unless the unit is subject to a subsequent RUC instruction that
complies with the terms specified herein.
The Order required that ERCOT provide a report by October 6, 2023,
for the dates between September 7, 2023 and September 8, 2023,
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 was required to include, (i) emissions data in pounds per hour
for each Specified Resource unit, for each hour of the operational
scenario, for CO, NOX, PM10, VOC, and
SO2; (ii) emissions data must have included 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; September
8, 2023; 4 hours; 04:00-08:00 CDT''; (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 required that ERCOT submit a final report by November 6,
2023, with any revisions to the information reported on October 6,
2023. However, 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
[[Page 67742]]
prepare a special environmental analysis.
Signing Authority
This document of the Department of Energy was signed on September
26, 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 September 27, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-21719 Filed 9-29-23; 8:45 am]
BILLING CODE 6450-01-P