Load participation in the ERCOT market

Since the deregulation of the electrical power market, customers are having choices to select their service providers. In addition, it provides the opportunities for both generator and load to participate in auction and ancillary service markets. Several independent system operators (ISOs), such as Electric Reliability Council of Texas (ERCOT), New England (NE), New York (NY) and Pennsylvania New Jersey and Maryland (PJM), offer demand response (or load participation) program in the auction power market to make the auction market more flexible and realistic. With the ability to curtail electricity demand, industrial plants are encouraged to participate into both the energy and ancillary service (AS) markets in Texas. Since the qualified load will receive both market clearing price for capacity (MCPC) and market clearing price for energy (MCPE) for the actual energy employment, this paper discusses the "load acting as a resource (LaaR) program in Texas. The procedure to be qualified as a LaaR participant is also discussed.