Overheard at the Infocast ERCOT Market Summit 2017

Overheard at the Infocast ERCOT Market Summit 2017

Mar 15, 2017

by Margarita Fournier; Copyright 2016 by Competitive Assets, LLC.  All rights reserved

On 3/13/17, RTO Insider reported on the recent Infocast conference in Austin, which “gathered industry experts in the Texas state capital to share their insights on the ‘challenging times that lie ahead for ERCOT.’ Panelists examined changing market rules, the impact of gas prices on generators, how the delivery of new wind and solar power will change market dynamics, and the revamping of ancillary service market rules during the sessions Feb. 27-March 1.” Among the speakers, PUCT Chairman Donna Nelson stated that: “Right now, I’d say our market is working because we have a healthy reserve margin and we have fossil-fuel generation to cover [wind energy’s] variability… Over time, if that [wind] generation is built, we’ll have to look at what it takes to keep the fossil fuels on. There’s a tension between the workings of the competitive market and reliability. We’ve made a lot of adjustments to the market over time — we want to keep the lights on too — but we have to look at reliability from a short-term to long-term perspective. That’s something the commissioners will continue to watch.”

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