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Texas PUC Staff Formally Propose Elimination Of Small Fish Swim Free Rule; Also Considering Other IMM Market Power Mitigation Recommendations
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Texas PUC Staff have filed a draft proposal for publication that would delete the small fish swim free rule at 16 TAC § 25.504(c)
16 TAC § 25.504(c) specifically provides that a single generation entity that controls less than 5% of the installed generation capacity in ERCOT, as defined by rule, excluding uncontrollable renewable resources, is deemed not to have ERCOT-wide market power.
16 TAC § 25.504(c) also provides that controlling 5% or more of the installed generation capacity in ERCOT does not, of itself, mean that a generating entity has market power.
Staff noted that deletion of the small fish rule would implement a recommendation made by the Independent Market Monitor (IMM)
Staff is also considering other IMM recommendations regarding market power
Specifically, if the Commission approves the proposal for publication regarding elimination of the small fish rule, Staff intends to file an additional memo requesting comments on a related issue involving a different recommendation from the IMM’s 2024 State of the Market Report.
Specifically, Commission Staff intends to request feedback on the IMM’s proposal to use a three-step process to mitigate market power at system and zonal levels.
Staff said, "For the convenience of interested commenters, Commission Staff plans to allow commenters to provide feedback on both the proposed rule changes and the IMM’s recommendation in a single filing."
Staff is not requesting Commission action on the issue of the IMM’s proposed three-step process at this time.
Project 58379
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August 13, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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