A Conversation on the Changes to the ERCOT Market Design

Speakers

Beth Garza

Senior Fellow, Energy

Barbara Clemenhagen

Vice President, Market Intelligence, Customized Energy Solutions

Overview

After the February 2021 winter storm that left millions of Texans without power, the Texas Legislature passed Bills to make several major changes, including requiring power plants to better prepare for very cold conditions and implementing a “reliability standard” for the state’s electricity market. The Public Utilities Commission’s favored Performance Credit Mechanism (PCM) proposal would add financial credits for power plants that can produce electricity when the grid is at its most stressed. Our speakers will discuss the pros and cons of the PCM and its current status and the competing regulatory proposals that are being considered by Texas utility regulators and the Texas Legislature.