PUCT Chair Nelson "Definitely In Favor" of Raising System Wide Offer Cap

PUCT Chair Donna Nelson is, "definitely in favor of increasing the System Wide Offer Cap" and "tweaking" the Power Balance Penalty Curve, Nelson said during a resource adequacy workshop held by the Commission yesterday.

Commissioner Rolando Pablos said that he agreed with the sentiments.

During the workshop, Commissioners questioned REPs on certain REPs' desire for a longer transition to any increase in the offer cap.

Commissioner Kenneth Anderson said, in particular, that REPs will need to provide more detail on why a delay is justified if the Commission is to accept any such delay, particularly as Commissioners discussed REPs' hedging practices for fixed products, which would suggest that REPs, at least for forecast volumes, would be insulated from any offer cap change for products for which they cannot change the retail price.

Commissioner Kenneth Anderson also expressed reservations about "full cost" bidding from generators, rather than marginal cost bidding.