Public Utility Commission's recommendation to change electricity market causes controversy at capitol

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Some state lawmakers are criticizing a recommended plan by the Public Utility Commission of Texas to make the state's electric grid more reliable as the population continues to grow.

While the PUC isn't implementing the plan until the legislature weighs-in, it's generating controversy at the Capitol.Experts say the program is designed to provide extra payments to power plant operators who would be available to produce electricity at a moment's notice when the grid needs it.

State Senator Nathan Johnson, D-Dallas, said Friday that he wants to give the proposal a chance."I do think it's worth pursuing. There have been models out there around the world for a long time. They all have problems. The PCM, performance credit mechanism, is an attempt to create a mechanism that obtains the advantages of these other systems and addresses some of the disadvantages.

A PUC spokeswoman issued a statement late Friday afternoon in response to Schwertner's tweet."Given the significant interest in the PCM and associated guiding principles, the decision yesterday reflects the Commission's commitment to continue to work with legislators, stakeholders, and the public and allow time for legislative input before beginning the process of implementation.

He and other energy industry experts have said federal subsidies have made wind and solar power cheaper to produce than electricity produced by thermal-powered plants, which have discouraged new plants from being built in Texas.

 

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