Power grids dallas9/11/2023 ![]() With the PUC’s approval of a new outlook, legislators and officials from the Electric Reliability Council of Texas (ERCOT) - the state’s main grid operator - will now debate next steps for the plan. State lawmakers, Schwertner said, “did not direct the PUC to replace the state’s energy-only market with an unnecessarily complex, capacity-style design that puts the competitive market at risk without guaranteeing the delivery of new dispatchable generation.” However, as renewable energy production becomes cheaper and a growing population pushes up demand, that structure is colliding with efforts to make sure there’s enough electricity during periods of extreme heat and cold. Texas’ main power market has relied for years on a competitive design that allows generators to reap high prices when conditions are tight, potentially creating an incentive for companies to build more power plants. ![]() In a letter to regulators last week, Schwertner said the PUC’s design represented a “substantial departure” from what legislators previously directed the commission to consider. Charles Schwertner, a Republican who leads the influential state Senate Business and Commerce Committee, labeled the PUC plan “unacceptable” in a Thursday Twitter post. And powerful legislators question whether the PUC’s plan will offer the reliability its supporters promise. Some also say the proposal would raise power costs for customers. Critics, however, warn that the PUC is pushing the state toward a market design rooted in the past instead of embracing renewable energy and accelerating efforts to cut electricity use when demand is highest.
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