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ERCOT Adds Reliability Fees

ERCOT recently implemented regulatory changes that will raise costs, but potentially mitigate higher market prices during extreme weather events with improved reliability. Firm Fuel Supply Service (FFSS) is a new annual service from November 15 to March 15 that compensates generation resources to meet a higher level of resiliency and grid reliability. Emergency Response Service (ERS) cost is a special emergency service that is used by ERCOT to help prevent or reduce system-wide load shed of electric customers. FFSs is a new product. ERS was previously in place, but ERCOT has adopted a rule to increase the budget to $75 million from $50 million.

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