PUCT Staff Outline First Steps for Price Formation Review Project

PUCT Staff Outline First Steps for Price Formation Review Project

June 1, 2017

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

A new project, opened by the Commission, will review price formation rules in the ERCOT market. Inspired by the filing of a paper on possible revisions to the energy-only market by Prof. Hogan and Susan Pope, the Commission discussed its approach to the proposal and then opened Project No. 47199, Project to Assess Price-Formation Rules in ERCOT’s Energy-Only Market, in late May. Filed for the next open meeting, the staff’s new memorandum contains two requests: (1) for parties to comment on report’s price formation concerns and proposed solutions, including three specific questions; and (2) for ERCOT to submit a report on recent changes to the transmission planning, possibility of a local reserve product, and handling of marginal losses. The memo is expected to be discussed at the 6/7/17 open meeting

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