Resource Adequacy

The Texas Public Utility Commission issued a statement assuring consumers that it continues to closely monitor the forecast for electricity supply and demand for this coming summer.

The commission acknowledged that recent decisions by various generation owners to retire several large coal-fired power plants has significantly reduced the excess supply of electricity that the Electric Reliability Council of Texas (ERCOT) region has enjoyed over the past five years. The commission conceded as well that this summer likely will be tighter in terms of power supply than the past few years.

Nevertheless, the commission said, it is important to remember that the ERCOT market incorporates a number of mechanisms and tools through which to incentivize increases in supply or temporary reductions in demand to maintain the reliability of the system. According to the commission, those tools include programs operated by ERCOT, retail electric providers, and distribution utilities that compensate customers who can temporarily reduce their demand or operate their own generation if outages of large power plants occur during extreme weather conditions.

Additionally, it stated, the ERCOT market structure provides powerful incentives for customers to reduce their consumption in response to changes in price. The commission related that ERCOT reports show ongoing investment in and development of natural gas, solar, and wind power plants. The commission conveyed that it remains committed to ensuring that market rules support the investment needed for the growing state.