“ERCOT’s resource adequacy forecast shows that the Texas electricity marketplace continues to be the most competitive and successful in the nation, but it also points to some significant challenges we face.
“The low projected reserve margins are not caused because of problems with the market. If the market isn’t sending the necessary price signals to bring about investment in new generation, it is because of problems in the regulation of the market. Price caps on wholesale prices, renewable energy subsidies, and the recently enacted ability of the PUC to disgorge revenues from companies all inhibit the market’s ability to respond to market conditions.
“To ensure adequate supplies of electricity in the future, we have to eliminate harmful regulations so that the market can do its work.
“Texans have benefitted from over a decade’s worth of increased competition in the electricity market. ERCOT’s forecast shows us it is time to take the next step forward in deregulation, not turn back.”
Bill Peacock is Vice President of Research and Director of the Center for Economic Freedom at the Texas Public Policy Foundation.
The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin.
Primary website: www.TexasPolicy.com Facebook page: www.Facebook.com/TexasPublicPolicyFoundation Twitter feed: www.Twitter.com/TPPF
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