PUC vote takes step toward redesign of ERCOT electric market

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The vote is a milestone in the wake of the February 2021 freeze that knocked more than 48 percent of the state’s power generation offline and led to more than 200 deaths.

Public Utility Commission Chairman Peter Lake speaks during an interview in his office on Thursday, Sept. 2, 2021 in Austin, TX. AUSTIN — The Public Utility Commission on Thursday voted unanimously to overhaul how electricity is bought and sold within the Electric Reliability Council of Texas, a decision that could have sweeping impacts for the grid’s performance and for ratepayers’ monthly power bills.

The additional costs associated with the plan are expected to be passed on to consumers. But it might take two to four years before bills increase as details get ironed out. Most of those points were raised by Commissioner Jimmy Glotfelty when he described what he would like to see added to the PCM proposal. He worried that if generators and their affiliated electric retailers, such as NRG and Reliant or Vistra and TXU, sold and bought performance credits among themselves, they could hypothetically game the market and concentrate market share.

The commissioners ultimately tasked ERCOT staff to study whether implementing that type of ban would have a negative impact on the market.

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PUC to take next step on ERCOT market redesignThe marching orders from the Texas Legislature to the Public Utility Commission and ERCOT coming out of the 2021 session, and the February 2021 freeze, were stern: Don't let the lights go out again.
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