Phase One Ends, What Will Define Phase Two?

Last week, the PUC, in one of new Chair Thomas Gleeson’s first acts, declared Phase 1 of the ERCOT market redesign to be over. 

Good riddance.

Phase 1 was a tortured effort that resulted primarily in higher costs for beleaguered Texas consumers. Yes, the state avoided supply-driven blackouts — but then again, that happened in the decade before 2021’s Winter Storm Uri as well.

The bigger question is whether the PUC can ensure higher levels of reliability without squashing the Texas economic miracle — that is, without sharply increasing costs to the point that residential and small business customers face shut-offs, or that the manufacturers Texas covets start looking elsewhere to build, expand, and hire…