Academic: ERCOT Should Consider Capacity Payment Or Resiliency Charge For Baseload Resources
July 18,2019
In an op-ed published in the Houston Chronicle, Bernard L. Weinstein, adjunct professor of business economics in the Cox School of Business at Southern Methodist University, says that ERCOT should consider a 'capacity payment' or 'resiliency charge', as used in some FERC-jurisdictional RTOs, to compensate baseload plants
"ERCOT needs to adopt a pricing scheme that acknowledges the value of baseload power plants," Weinstein writes, even while acknowledging baseload plants are being retired in several of the RTOs that have already layered such payments onto the market design
Weinstein claims such payments are needed to retain baseload generation