AUSTIN – A bipartisan group of state senators wants Texas’ electric grid regulator to halt its redesign of the state’s electricity market just two weeks after...
Last month, the Public Utility Commission, led by Chairman Peter Lake, proposed an untested market design called the “performance credit mechanism,” which would require electric utility companies to purchase credits, which are then awarded to power plants that deliver on promises to produce electricity when the state’s demand peaks.flummox industry insiders
Lawmakers’ dubious reaction to the proposed redesign appears to have morphed into a red light after senators heard testimony that the untested marketplace would make investors skittish to commit to building coveted natural gas plants in Texas. Dispatchable generation is code for power plants that can be turned on at the flick of a switch. In Texas, that generally means natural gas fueled power plants.
The senators’ objections to the market design came very late in a process that the Public Utility Commission intended to complete before lawmakers return to Austin next month. The commission has attempted to avoid pressure from politicians, including the governor, to attack renewable energy.
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