In a letter to the Public Utility Commission of Texas concerning the Houston import project, Texas State Senator Lois Kolkhorst said that the state's current policies "unduly" encourage transmission to solve resource adequacy issues.

In discussing the line, Kolkhorst wrote the PUCT in a December 8 letter that, "In the past, I have visited with you and other commissioners about resource adequacy. While I understand the needs of a growing state, I want to stress that there are other solutions beyond building power lines. Ultimately, the current business model incentivizes the construction of power lines with a guaranteed return to these companies that are funded solely by the ratepayers. If the current model provides a guaranteed return with little risk, the state unduly encourages the construction of unnecessary lines. In my opinion, resource adequacy should be primarily focused on production."

Tags:
Texas   Capacity Market   Transmission   Resource Adequacy   ERCOT  

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