Texas to Proceed With Evaluation of REP Credit Requirements, POLR Rules, In Light of Higher Price Caps

The Public Utility Commission of Texas directed Staff to proceed with an evaluation of credit requirements for retail electric providers, and other issues, prompted by the increase in the ERCOT price cap, eventually to $9,000/MWh in 2015.

Specifically, the Commission agreed with Staff's proposed workplan as outlined in a recent memo.

In the memo, first reported by Matters, Staff outlined a process to evaluate the following in light of the higher price caps:

• REP certification requirements, particularly capital/financial requirements

• Potentially shortening the ERCOT settlement timeline to 5 or 3 days, to reduce collateral requirements and market exposure

• Provider of Last Resort pricing and eligibility requirements (capital requirements), including potential solutions to address POLR rate impacts for mass transitions during times of high wholesale pricing

See prior story for further discussion of each issue

Staff will proceed with an evaluation of such issues and report back to the Commission on whether adjustments to the current rules are necessary.