Texas PUC Chair "Disappointed" In "Rhetoric", "Scare Tactics" Used By Certain Parties Regarding ERCOT 2018 Summer Reserve Margin

During a discussion during yesterday's open meeting, Texas Public Utility Commissioners chastised certain parties for "scare tactics" regarding the projected 2018 summer reserve margin (9.3%) from the latest ERCOT CDR report

Commissioner Brandy Marty Marquez said that the Commission should conduct outreach to legislators in advance of the summer concerning expected market conditions and that such conditions reflect the cyclical nature of competitive markets.

"I think that we need to probably re-up our efforts to educate [the] legislature about our market and why we love our market, and what our market is going into this summer. And what they can expect," Marquez said

"I think that people need to know what's coming and prepare for it, because this is part of a natural cycle, and so I think that anything we can do to prepare the legislature for this summer and any potential price spikes, we just need to make sure folks are educated about how our market works," Marquez said.

Chairman DeAnn Walker agreed, stating. "I think it's very worthwhile to try to get the legislature and anyone else educated on what you're talking about."

Walker further stated, "This summer is going to be different."

"There may be some price elevations, but in my opinion, after I've looked into everything, I think we'll be fine," Walker said

The outreach proposed by Marquez would be worthwhile, Walker said, because, "A lot of people, in particular in 47199 [a project concerning energy-only price formation issues] -- I was very disappointed to see a lot of people use it as rhetoric to try to scare people, including us."

"And I think that we need to send a message that we're not. We think we've got this," Walker said

Marquez said that this summer provides an opportunity for the energy-only market's "finest hour."

"I think we're going to be fine, but I do think that we need to let people know what they should expect because this is just exactly how markets work," Marquez said

Marquez added, "It doesn't suit anybody's purpose for people to be using inflammatory scare tactics. That's going to backfire."