“The Electric Reliability Council of Texas’ (ERCOT) resource adequacy update highlights the point that while the Texas electricity market is not facing a crisis, it is in need of reform. However, we need not abandon Texas’ competitive electricity market by forcing consumers to foot the bill for subsidies to generators through a capacity market to improve future reserves. Instead, we should reduce government intervention in the market, such as subsidies for renewable energy. We should also stop the Texas Sunset Commission’s efforts to burden the electricity market with higher fines and increased regulatory authority at a time when regulatory uncertainty is the main cause of lower reserves.”
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.