Distribution Provider

A Distribution Provider (DP) provides and operates the “wires” between the transmission system and the end-use customer. For those end-use customers who are served at transmission voltages, the transmission owner also serves as the DP. Thus, the DP is not defined by a specific voltage, but rather as performing the distribution function at any voltage.

A DP must meet the following criteria for registration:

• Distribution Provider system serving >25 MW of peak load that is directly connected to the Bulk Power System.
• Responsible entity that owns, controls, or operates facilities that are part of any of the following protection systems or programs designed, installed, and operated for the protection of the Bulk Power System:
• a required Under-Frequency Load Shedding (UFLS) program.
• a required Under-Voltage Load Shedding (UVLS) program.
• a required Special Protection System (SPS).
• a required transmission Protection System.

For more information about registration criteria, refer to the North American Electric Reliability Corporation (NERC) Statement of Compliance Registry Criteria, found on the Registration and Certification  page.

Exclusion: A Distribution Provider will not be registered based on these criteria if responsibilities for compliance with approved NERC Reliability Standards or associated requirements including reporting have been transferred by written agreement to another entity that has registered for the appropriate function for the transferred responsibilities, such as a Load-Serving Entity (LSE), Balancing Authority (BA), Transmission Operator (TOP), generation-and-transmission cooperative, or joint action agency as described in Sections 501 and 507 of the NERC Rules of Procedure (found on the Registration and Certification  page).

According to the NERC registration criteria, a DP must be registered as an LSE for all load directly connected to its distribution facilities.

However, in the Electric Reliability Council of Texas (ERCOT) competitive markets, DPs cannot perform certain requirements of LSEs. NERC and the Federal Energy Regulatory Commission (FERC) have allowed flexibility in LSE registration in the ERCOT region.

Texas Reliability Entity, Inc. is working with transmission companies, qualified scheduling entities (QSEs), and the ERCOT independent system operator to facilitate an LSE JRO that would correctly reflect the responsibilities of the entities in ERCOT region.