Texas regulators shelve an electricity market reform proposal they say does too little to shore up grid

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Energy,State Government,Electric Reliability Council Of Texas

The Public Utility Commission found that the performance credit mechanism, a financial tool the Legislature capped at $1 billion, would only marginally improve reliability of the state power grid.

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The idea would have required electricity providers — the companies, co-ops and municipal utilities that sell power to people — to pay more to generators that committed to having electricity available when grid conditions get tight. Electricity providers then could have passed those extra costs onto consumers.

The PUC on Thursday pointed to other mechanisms that commissioners said would do more to increase reliability.

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