The Texas Public Utility Commission on Friday signaled its intent to mandate a reserve margin in the state’s wholesale electricity market. In response, Texas Coalition for Affordable Power Executive Director Randy Moravec has released the following statement.
A State Mandate on Electricity Marks a Step toward Higher Prices
“The PUC today signaled its intention to enforce a mandatory reserve margin in the state’s wholesale electricity market. We share Commissioner Anderson’s concern that this new state mandate will lead to higher prices for electricity, but with no clear benefit in terms of system reliability. Mandating a reserve margin is the first step toward creating a capacity market that would increase electricity costs by billions of dollars. A state mandated reserve margin also violates the free-market principals upon which the state’s competitive electricity market was created. TCAP opposes a capacity market in Texas and believes a decision to mandate a reserve margin is premature.”
About Dr. Moravec
Dr. Randy Moravec is executive director of the Texas Coalition for Affordable Power, a coalition of more than 160 cities and other political subdivisions that purchase electricity in the deregulated market for their own governmental use. Because high energy costs can impact municipal budgets and the ability to fund essential services, TCAP, as part of its mission, actively promotes affordable energy policies. High energy prices also place a burden on local businesses and home consumers.
Is a policy analyst consultant for TCAP, a coalition of political subdivisions in Texas that purchase electricity in the deregulated market for their own governmental use. Because energy costs are typically a significant budget item to our members, TCAP is consistently looking for ways to save our members money, through cost-saving contracts, energy efficiency or demand response programs.