Feb. 7 — The Texas market … operates on a tighter margin. There, policymakers have avoided power generation mandates and subsidies. Equally important, the Texas market only pays power plants when they actually deliver energy or are called up for short-term operational reliability.
Other parts of the country should move gradually in Texas’s direction in this regard. Consumers should not be a backstop for a retrograde industrial policy that keeps power plants in operation needlessly. But at the same time, if the market does not pay a premium for energy to avoid outages during those hours when the weather is inclement or the system faces stress, consumers will eventually get what they pay for.
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.