Load-Serving Entity

A Load-Serving Entity (LSE) secures energy and transmission service (and related Interconnected Operations Services) to serve the electrical demand and energy requirements of its end-use customers.

According to the North American Electric Reliability Corporation (NERC) registration criteria, a Distribution Provider (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 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 (ISO) to facilitate an LSE Joint Registration Organization that would correctly reflect the responsibilities of the entities in ERCOT region.

An LSE must meet the following criteria for registration:

• LSE peak load is > 25 MW and is directly connected to the Bulk Power (>100 kV) System (BPS), or;
• LSE is designated as the responsible entity for facilities that are part of a required under-frequency load shedding (UFLS) program designed, installed, and operated for the protection of the BPS, or;
• LSE is designated as the responsible entity for facilities that are part of a required under-voltage load shedding (UVLS) program designed, installed, and operated for the protection of the BPS.
• Exclusion: A Load-Serving Entity 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, Balancing Authority, Transmission Operator, generation and transmission cooperative or joint action agency as described in Sections 501 and 507 of the NERC Rules of Procedure.

For more information about registration criteria, refer to NERC’s Statement of Compliance Registry Criteria, found on the Registration and Certification  page.