Better Utilization of the Grid: Innovating to Increase Utilization and Lower Customer Bills

Welcome!

May 21, 2026

Tonight!!

ANNUAL MEMBERS RETREAT

Join us for the inaugural Caucus Members Retreat — an exclusive two-day convening designed to align priorities ahead of the 90th Legislative Session while providing time to connect and recharge.

Omni Barton Creek Resort & Spa, Austin

Hill Country setting just minutes from the Capitol

Member spouses and partners are welcome. Full agenda and RSVP details to be shared soon.

POP QUIZ

Q1: What is the primary difference between kW and kWh?

A

kW measures energy over time; kWh measures instantaneous power

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B

�kW measures instantaneous power; kWh measures energy over time

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C

kW applies only to renewable resources

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Q1: What is the primary difference between kW and kWh?

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B

�kW measures instantaneous power; kWh measures energy over time

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Q2: Which of the following is an example of a passive DER?

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A

Thermostat demand response

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B

ADER aggregation

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C

Managed EV charging

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D

Improved building insulation

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Q2: Which of the following is an example of a passive DER?

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D

Improved building insulation

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May 28

Reminder: First draft deadline

June 4

Project Workday

Practice your presentations

June 17

The real thing:

PowerPlayer Awards

PROJECTS

CODE: EnergyAcademy2026

FINAL PROJECT

Scan Here: for the final project folder

Doug Lewin

Google

Beth Garza

Independent Consultant

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Reading Discussion

• Electricity Markets: A Primer for State Legislators
• review ERCOT (and non-ERCOT areas) attributes
• Clean Energy 101: Virtual Power Plants
• reactions
• Latitude Media podcast @ Base Power
• ERCOT which enablers

~$3B

estimated congestion cost savings from broad ATT adoption (2022–2024)

AES reconductored a 240-mile line, doubling capacity and saving customers $15M annually.

Key Definitions

Microgrid

Virtual Power Plant (VPP)

Demand Response (DR)

Key concept: Scale through aggregation — 0.001 MW residential resource × thousands of customers = meaningful grid service

Key Definitions

• Microgrid: a localized group of electricity sources and loads that can operate connected to or independent of the main grid
• Typical assets: solar PV, battery storage, backup generators, controllable loads
• Can island during outages
• High resilience value

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Key Definitions

• Virtual Power Plant (VPP): a cloud-based network of distributed energy resources (DERs) operated as a single wholesale market participant
• Resources: rooftop solar, home batteries, smart thermostats, EV chargers, water heaters
• Aggregator coordinates dispatch in real-time
• Looks like a power plant to the grid

Key Definitions

• Demand Response (DR): deliberate reduction or shift of load in response to price signals or grid operator requests
• Can provide energy, capacity, and ancillary services to ERCOT

~$3B

estimated congestion cost savings from broad ATT adoption (2022–2024)

Mis/Preconception #1:

Low utilization of wires is a sign of inefficiency / overbuilding

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• Reliability standards ensure continued electricity delivery even after a facility is unexpectedly unavailable.

Mis/Preconception #2:

Small customers don’t have the same access to the wholesale market as large customers

• Scale - .001 MW (residential) vs

.1 MW systems

• Legislative prohibition (revision to PURA 39.110 during 2021 Session (HB16) prohibiting small customer retail rates indexed to wholesale prices)

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Part 2: Status and Some Solutions

ERCOT’s ADER Program

• Currently in pilot, starting discussions to expand
• Aggregation is key – one wholesale market participant representing the contributions of potentially thousands of small customers
• Measurement accuracy vs lower program cost

• Less than 60kV, small poles and wires
• Many more entities (100+?) of different ownership types
• Different levels of regulatory oversight
• Company specific standards, processes and procedures
• Not part of ERCOT’s purview

• Greater than 60kV, big poles and wires
• 15 entities representing 90% of load
• PUCT has regulatory oversight for all transmission
• Some standardization (gen interconnect, large load interconnect in progress)
• ERCOT responsible for regional transmission planning

Distribution

Transmission

Part 3: Policy History

SB7 (1999) established ERCOT as:

• retail switching clearinghouse
• market operator
• single control area operator
• regional transmission planner

Distribution provider types

Investor owned

Municipally owned

Customer owned

Part 4: Key Recommendations

Items to Consider

• Removing the prohibition on wholesale price exposure

for small consumers – with appropriate protections.

• Criteria for being a “utility” may need review to enable an

entity to provide to multiple customers

Always remember:

Electricity flows are determined by physics not regulation or law

Energy Policy Advisory Council

Post-Session Reading

• “Briging the Load Gap” https://www.ase.org/sites/ase.org/files/large_load_customer_concept_report_-_jan_2026.pdf
• “The Untapped Grid” https://www.brattle.com/wp-content/uploads/2026/03/The-Untapped-Grid-Mar-2026.pdf
• “Retail Electricity Prices: Drivers” https://emp.lbl.gov/sites/default/files/2026-03/Retail%20Price%20Trends_2026%20edition.pdf

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QUESTIONS?

OUR DEMO GROUPS

NRG

Stephen Bedford

Renewable Energy Specialist

Schneider Electric

Giovanni Herazo

Head of Solutions Architecture