ERCOT Scraps Winter Capacity Program, Raises Concerns for Texas Power Grid

The Electric Reliability Council of Texas (ERCOT) has canceled its winter capacity program after no energy companies volunteered to activate their shuttered power plants. ERCOT had sought additional electricity generation to bolster power reserves for the upcoming winter, but only received offers for enough power to supply 2,200 homes. The program faced criticism from some generation companies and regulators, who saw it as government interference and expressed concerns about the lack of a firm cost cap. Despite canceling the program, ERCOT CEO Pablo Vegas believes the risk of power cuts is low due to improved weatherization standards and increased communication between industry stakeholders. The focus now is on designing a demand response program to attract utilities and private power providers, potentially involving residential and small business participation.