Texas PUC Staff Asks For Comment On Potential Cost Recovery Mechanisms For Generation Weatherization, If Market Mechanisms Deemed Insufficient

Staff of the Public Utility Commission of Texas has filed for discussion a draft for new 16 Texas Administrative Code (TAC) §25.55 to implement weather emergency preparedness measures for generation entities and transmission service providers in the Electric Reliability Council of Texas (ERCOT) power region, as required by Senate Bill 3

Of note, Staff asks for comment on the following questions: "Do existing market-based mechanisms provide sufficient opportunity for cost recovery to meet the weather reliability standards proposed in the discussion draft? If not, what cost recovery mechanisms should be included in the proposed rule?"

As previously reported, Texas Competitive Power Advocates (TCPA) has recommended that the PUC adopt a cost recovery mechanism, perhaps through a non-bypassable charge, for facilities subject to new weatherization mandates for whom cost-of-service ratemaking is unavailable.

See the discussion draft here

Project 51840