Texas Grid Operator Looks to Bolster Energy Prices Amid Renewables Influx

The Public Utility Commission of Texas is examining reforms to price formation in the Electric Reliability Council of Texas (ERCOT) energy-only market over concerns of low prices. The proceeding stems from a whitepaper on shortcomings caused by subsidized renewables and other factors expected to interfere with investment decisions and undermine market sustainability. The ERCOT proceeding highlights the ongoing national discussion over the role of organized electricity markets in ensuring fuel diversity and system reliability through pricing mechanisms.