Texas Senate Approves Bill To Re-Price ERCOT Energy, Ancillary Services Prices

The Texas Senate has approved SB 2142, a new bill just filed today, that would order the PUC to re-price ERCOT wholesale power and ancillary services prices for the period beginning 11:55 p.m., February 17, 2021, and ending 9 a.m., February 19, 2021

Senators emphasized that the bill represents the correction of a billing error, due to ERCOT not following the PUC's direction on when administrative pricing at $9,000 per MWh should end, as the PUC's order said that such pricing shall end when load shed ends.

The bill was passed to engrossment, final passage was approved, and the bill has been reported as engrossed, with a typical constitutional 3-day rule suspended

The bill now moves to the House

Specifically, the text of SB 2142, as filed, provides, "The Public Utility Commission of Texas shall order the independent organization certified for the ERCOT power region under Section 39.151, Utilities Code, to correct the prices of wholesale power and ancillary services sold in the ERCOT market during the period beginning 11:55 p.m., February 17, 2021, and ending 9 a.m., February 19, 2021, to reflect the prices of wholesale power and ancillary services that would have been paid in the ERCOT market during that period absent any action of the independent organization or commission to raise prices."

"By the order described [above], the Public Utility Commission of Texas shall require the independent organization to issue all orders and take all other actions necessary to correct the prices not later than March 20, 2021," SB 2142 provides

The bill states, "there is a compelling public interest in correcting the prices of wholesale power and ancillary services sold in the ERCOT market during the period beginning 11:55 p.m., February 17, 2021, and ending 9 a.m., February 19, 2021."

The bill states, "the Public Utility Commission of Texas has all necessary authority under Section 39.151(d), Utilities Code, to order a correction of prices of wholesale power and ancillary services sold in the ERCOT market during the period described by Subdivision (1) of this section in accordance with this Act."