PUCT To FERC: Scarcity Pricing Mechanisms Alleviate Need For "Resilience-Based Regulatory Controls"
March 13,2018
In comments jointly filed by ERCOT and the Texas PUC in a FERC proceeding on grid "resilience" in RTOs, ERCOT and the Texas PUC described the variety of scarcity-based pricing mechanisms in the ERCOT market and stated, "These scarcity-based pricing mechanisms not only encourage sufficient long-term investment in generation, but also help to ensure that generation owners maintain their units to maximize availability during a variety of possible system disturbances."
"In short, ERCOT’s scarcity pricing mechanisms are designed to alleviate the need for many resilience-based regulatory controls," ERCOT and the PUCT said