Texas PUC Staff Asks For Comment On Potential Cost Recovery Mechanisms For Generation Weatherization, If Market Mechanisms Deemed Insufficient
July 19, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Staff of the Public Utility Commission of Texas has filed for discussion a draft for new 16 Texas
Administrative Code (TAC) §25.55 to implement weather emergency preparedness measures
for generation entities and transmission service providers in the Electric Reliability Council of
Texas (ERCOT) power region, as required by Senate Bill 3
Of note, Staff asks for comment on the following questions: "Do existing market-based mechanisms provide sufficient opportunity for cost recovery
to meet the weather reliability standards proposed in the discussion draft? If not, what
cost recovery mechanisms should be included in the proposed rule?"
As previously reported, Texas Competitive Power Advocates (TCPA) has recommended that the PUC adopt a cost recovery mechanism, perhaps through a non-bypassable charge, for facilities subject to new weatherization mandates for whom cost-of-service ratemaking is unavailable.