{"id":10746,"date":"2024-06-21T06:57:00","date_gmt":"2024-06-21T11:57:00","guid":{"rendered":"https:\/\/www.texaselectricityratings.com\/blog\/?p=10746"},"modified":"2024-06-17T14:36:24","modified_gmt":"2024-06-17T19:36:24","slug":"what-are-ancillary-services-and-how-do-they-affect-tx-energy-rates","status":"publish","type":"post","link":"https:\/\/www.texaselectricityratings.com\/blog\/what-are-ancillary-services-and-how-do-they-affect-tx-energy-rates\/","title":{"rendered":"What Are Ancillary Services and How Do They Affect TX Energy Rates?"},"content":{"rendered":"\n

Do Ancillary Services Increase Power Rates?<\/h2>\n\n\n\n
\"Ancillary
ERCOT uses ancillary services to plan for electricity demand each day. This way, it can line up enough energy to keep the grid balanced and reliable. Learn how these costs affect your Texas electricity rates and what you should do.<\/em><\/center><\/figcaption><\/figure><\/div>\n\n\n\n

A lot of stuff goes into your electric bill. Your local utility includes their charges applicable to everyone. Also,your electric company<\/a> assesses costs according to your plan. But there\u2019s something baked into your plan rate you probably don\u2019t know about \u2013 ancillary services. They help balance each day\u2019s supply<\/a> and demand to keep the ERCOT grid efficient.\u00a0<\/p>\n\n\n\n

Certainly, ancillary services raise the price you pay for power. However, they don\u2019t show up as line items on your monthly bill. Instead, retail providers, co-ops, and cities pay these costs. In turn, you pay for them within your electric rate. There\u2019s no such thing as a free lunch, right!? These services ensure you have reliable home and business electricity<\/a> each day.\u00a0<\/p>\n\n\n\n

\"Ancillary
If you’re confused by talk of ERCOT ancillary services costs, don’t worry. We dig into the simple facts to show what they are and how they affect your monthly bill.<\/em><\/center><\/figcaption><\/figure><\/div>\n\n\n\n

What Are Ancillary Services?\u00a0<\/h3>\n\n\n\n

ERCOT walks a fine line to balance how much power is available with how much people need. They monitor data minute to minute, and they buy ancillary services one day ahead on the open market. These services help ERCOT throttle up and down how much power it has each second of every day. Therefore, ERCOT can deploy these services quickly to address grid needs. <\/p>\n\n\n\n

According to Modo Energy<\/a>, the four services have their own purposes:<\/p>\n\n\n\n