Lt. Gov. Says Texas House Won't Take Up Bill Requiring Re-pricing Of ERCOT Market

Lt. Gov. Dan Patrick told Senators during session today that he received a statement from Speaker of the House of Representatives Dade Phelan that Patrick said informed the Senate that the House will not take up SB 2142, a bill passed by the Senate 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

Texas House Speaker Dade Phelan publicly issued a statement which was not explicit in terms of the House declining to take up the bill, but in which Phelan clearly set forth his opposition to the bill.

Phelan said that continued pricing at the $9,000 cap during the winter weather event was not an "error," but was rather a proactive decision by the Public Utility Commission of Texas and ERCOT

Phelan said that he believes the PUC's and ERCOT's decisions on pricing may have saved lives

"ERCOT and PUC failed Texas repeatedly during this tragic event, but the decisions made on pricing were made based on ensuring the reliability of the grid," Phelan said. "I believe that these decisions saved lives."

"Repricing based on disagreement with PUC and ERCOT’s management decisions is an extraordinary government intervention into the free market, which may have major consequences for both residential and commercial consumers going forward," Phelan said.

Patrick said that the extraordinary government intervention into the free market was the PUC's order to set prices at $9,000 rather than let the market set prices

Phelan's statement followed a House State Affairs committee hearing on re-pricing in which members, as in last week's House hearing, were divided on the issue.

However, State Affairs Chair Rep. Chris Paddie, again signaled opposition to re-pricing based on his line of questioning, and concerns about disturbing settled prices in exchanges outside of ERCOT