Dive Brief:
- A mandate on the level of electricity reserves was approved Friday by a divided Texas Public Utilities Commission (PUC).
- The surprise 2-1 vote is a step toward reshaping the state's wholesale electricity market, which has been unable to provide enough incentive to generators to build needed power plants.
- New Commissioner Brandy Marty broke a stalemate between commissioners Donna Nelson and Ken Anderson in supporting the mandatory reserve margin.
Dive Insight:
Texas has one of the narrowest electricity reserve margins in the nation and has come close to experiencing rolling blackouts. Nevertheless, any reforms to the Texas power markets are controversial. “It’s the first step on a very slippery slope that has potential to destroy the economic engine that is Texas,” Anderson said of Friday’s decision. “I think it could lead to a huge tax on consumers that will not ensure reliability.”