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Texas regulator proposes power market overhaul after 2021 freeze

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The Public Utility Commission of Texas (PUCT) on Thursday adopted a new market design for the state's electric grid that will see power plants getting paid to be on standby, aimed at securing new generation capacity and increasing grid reliability.

The market redesign is the latest of several efforts by Texas regulators to ensure reliability of electricity supply after a February 2021 deep freeze that killed more than 200 people and left around 4.5 million Texas homes and businesses without power and heat.

The commission also directed the grid operator, Electric Reliability Council of Texas , to "develop bridging options to retain existing power plants and build new generation resources until the PCM can be fully implemented."

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