Vistra CEO Suggests Texas Reconsider 20% Market Share Cap On Generation Ownership

During a Texas House legislative hearing, in response to a question from a lawmaker on the issue, Vistra's president and chief executive officer Curt Morgan suggested that the state may wish to revisit the current 20% market share cap on generation ownership.

Currently, a power generation company may not own and control more than 20 percent of the installed generation capacity located in, or capable of delivering electricity to, a power region that has electric choice (e.g. ERCOT)

A lawmaker expressed concern that such market share cap is inhibiting investment

Morgan said that Vistra would be interested in owning additional generation, though throughout his discussion Morgan has reiterated prior views on Texas' market design and need for financial certainty for investment

Addressing concerns about market power, Morgan suggested that owners with more than 20% market share could enter into agreements similar to the current voluntary mitigation plans with the PUC available to generators, which govern offering behavior