The Texas Energy Market: Pushing for Change or Destabilization?

Texas state government is pushing legislation to boost electricity supplies during peak demand summer periods, but experts warn that one of the bills, SB 2012, includes so-called guardrails that could ultimately sink efforts to incentive energy companies to develop new dispatchable power facilities. The bill caps the state Public Utility Commission's proposed performance credit mechanism at $500 million annually. The Texas grid faces a new reality, and for the first time in its history, doesn't have enough dispatchable power generation to meet demand during times of peak consumption.