Texas Senate Bill SB2142

Texas 2021 - 87th Regular

Caption

Relating to correcting the prices of wholesale power and ancillary services sold in the ERCOT market during a certain period.

Impact

The passage of SB2142 could have significant implications for the ERCOT market and its regulatory framework. By allowing for corrections to wholesale power prices, the bill aims to protect consumers from inflated prices resulting from extraordinary circumstances, such as those witnessed during extreme weather events. This action indicates a proactive approach by the Texas legislature to maintain fairness in energy pricing and potentially rebuild trust in the ERCOT system following scrutiny over management during crises.

Summary

Senate Bill 2142 addresses the pricing of wholesale power and ancillary services sold in the Electric Reliability Council of Texas (ERCOT) market. Specifically, it mandates a correction of prices for the period from 11:55 p.m. on February 17, 2021, to 9 a.m. on February 19, 2021. The legislature acknowledges a compelling public interest in ensuring these prices reflect what they would have been had there been no actions taken to artificially raise them during that time. The bill instructs the Public Utility Commission of Texas to oversee and ensure these corrections.

Contention

Though the bill passed with significant support (27 yeas to 3 nays), it is not without contention. Opponents may argue that price corrections do not account for the complexity of market dynamics and could lead to unintended consequences for energy providers. Additionally, there are concerns regarding the autonomy of the Public Utility Commission, as the bill permits single-member decisions in critical financial matters in the event of a commissioner vacancy, which could spark debates over governance, accountability, and transparency.