ERCOT group eyes broad credit changes given higher price cap
Washington (Platts)
As the Electric Reliability Council of Texas faces rising price caps, market participants are considering broad changes to the grid operator’s credit rules to better account for potential price volatility.
At the instruction of the Public Utility Commission of Texas, ERCOT’s system wide offer cap on August 1 rose to $4,500/MWh from the previous cap of $3,000/MWh. The PUC recently postponed action on a proposal to further increase the system wide offer cap — possibly setting it as high as $9,000/MWh by June 1, 2015 — as the commission continues to discuss the state’s…