AEP Texas North Proposes Installation of Two Batteries, Addresses Treatment of Energy During Charge/Discharge


AEP Texas North has petitioned the Public Utility Commission of Texas for approval to install two lithium-ion batteries, at Woodson and Paint Rock, Texas

TNC is proposing to install a lithium-ion battery in two locations on its distribution system (in Woodson and Paint Rock, Texas) in order to increase the reliability of its distribution system, the company said

Due to the first-of-its-kind nature of this distribution installation in Texas, TNC is requesting that the PUCT confirm that TNC's proposed installation of batteries at Woodson and Paint Rock, Texas complies with Texas law and will be considered distribution assets whose cost will be eligible for inclusion in the company’s distribution cost of service. TNC is also requesting approval to apply a 6.67% depreciation rate to the property, which represents an estimated 15-year useful life.

"The assets described in this filing will not be used to sell energy or ancillary services at wholesale so they are not generation assets," TNC said

Concerning energy used to charge the battery, and energy discharged from the battery, TNC, "proposes that it be treated as unaccounted for energy (UFE), similar to ERCOT Protocol (f)(iii), which clarifies that metering of energy flows from transmission service provider-owned battery storage technology in Presidio is not required for settlement."

"However, the Company is open to discussions with interested parties regarding alternatives for accounting for the energy used during charging and discharging," TNC said

"The batteries will function as distribution assets and displace more traditional distribution-level upgrades, such as substations and distribution lines," TNC said

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