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Texas Legislation Would Prohibit Capacity Market

January 29,2015



A bill (HB 962) has been introduced into the Texas House of Representatives that would prohibit regulatory authorities from mandating or regulating the amount of installed capacity or reserve margin.

HB 962 provides, "The legislature finds that the amount of installed generation capacity is best determined by investor, generator, and customer choices through the normal forces of competition. As a result, regulatory authorities may not mandate or otherwise regulate the amount of installed generation capacity or require a surplus or reserve of installed generation capacity above actual or forecasted levels of load."

The bill would also strike the current prohibition on the certification of a region as a "qualifying power region" (for purposes of the transition to competition) if a person owns and controls more than 20 percent of the installed generation capacity located in or capable of delivering electricity to such power region

The bill is authored by Rep. Matt Krause

Tags:
Texas   Capacity Market   ERCOT  

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