AUSTIN – The Texas Public Policy Foundation’s Center for Economic Freedom reacted to this morning’s forecast for reserve margins in the Texas electricity market from the Electric Reliability Council of Texas (ERCOT):

“ERCOT’s forecast of increased reserves confirms that there is no need to re-regulate the Texas electricity market or impose a $3.2 billion electricity tax on Texas consumers,” said Center Director and Vice President for Research Bill Peacock. “The Legislature – rather than the PUC – is now likely to make the final call on the topic. As lawmakers deliberate this issue, the facts will show that Texas’ competitive electricity market is working. We don’t need to subsidize generators or Wall Street bankers to keep the lights on in Texas.” 

“The new numbers corroborate what the record and the Foundation’s research has shown time and again, that Texas’ energy-only market can reliably provide electricity at a reasonable, cost effective price,” said Center scholar Kathleen Hunker. “A capacity market would provide consumers no appreciable benefit. Texas’ competitive market has reliably supplied ERCOT with the energy it has needed, and more government intervention, especially in the form of a capacity market, will not improve reliability.”

The ERCOT report may be viewed here:

The Center for Economic Freedom’s latest work on capacity markets is here:


Bill Peacock is the Vice President of Research and Director of the Center for Economic Freedom at the Texas Public Policy Foundation.

Kathleen Hunker is a policy analyst with the Center for Economic Freedom at the Texas Public Policy Foundation, a non-profit, free-market research institute based in Austin.


The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin. 

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