Calpine: Introduce "Obligation to Serve" in ERCOT

Calpine has recommended to the PUCT that "the obligation to serve" be "placed on the table for discussion" as the Commission contemplates resource adequacy.

"Calpine suggests that the one missing factor in our deregulated market be placed on the table for discussion - the obligation to serve."

"The obligation to serve can be expressed in a variety of forms and mechanisms," Calpine said, and did not offer a specific mechanism.

Nevertheless, Calpine, "believes it would be worthwhile for stakeholders to discuss new ideas or programs implemented in other ISO/RTOs."

"The current market design still lacks strong enough incentives to drive supply side expansion, when needed, through long term bilateral contracting," Calpine added, suggesting that the programs in other RTOs that Calpine is referencing are capacity obligations on load serving entities.

"Stakeholders should be directed to begin developing approaches for the Commission's evaluation," Calpine said.