PUC attempts to rein in ERCOT, protect consumers

It was impossible not to feel the tension in the room during last Thursday’s PUC open meeting. 

The commissioners considered several controversial proposals, all of which will raise consumer costs.  

Everyone agreed consumer costs are going up. The disagreements on the Commission — and between several commissioners and ERCOT — focused on how to increase grid reliability, how much additional cost is acceptable, and whether there will be clearly defined limits to those costs.

Remember “Guardrails”?

Commissioner Will McAdams was looking for the “guardrails” that became a consumer-focused mantra during the legislative session. 

Less than six months ago, the legislature approved a controversial proposal to increase payments to thermal generators through a so-called Performance Credit Mechanism. But legislators also added a PCM cost cap of $1 billion to protect consumers “less the cost of any interim or bridge solutions.” 

Last week, McAdams argued that ERCOT’s proposed procurement of decommissioned or “zombie power plants” constitute a bridge solution and thus should count against the $1 billion cap…