Texas PUC Chair: ERCOT Market Needs To Move Away From "Crisis-Based Business Model"
PUC Chair: Market Design Should Provide Financial Incentive For Reliability
July 13, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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During testimony today before a Texas Senate committee hearing on the ERCOT market, Texas PUC Chairman Peter Lake said, "The [ERCOT] market needs to move away from a crisis-based business model."
Lake said that, under current market design, there's only a financial reward the closer you get to a crisis, which is not good for consumers
"We need to have a market design so that if you provide reliability, that's where the financial incentive is presented," Lake said
Reliability, "must be accompanied with accountability", Lake added, who said that, "We can't just throw money at existing assets."
Lake cited potential levers to achieve this market design as potentially including (but not limited to) a dual fuel ancillary services product, extended ancillary services (beyond 48 hours), and ORDC adjustments