Texas govt pushing action that could 'kneecap' new fossil fuel generation, destabilize grid, experts warn
Fox News
The Texas legislature is moving forward with legislation reforming energy markets that critics are warning would counteract stated goals of incentivizing more power generation.
However, experts said one of the bills, SB 2012, includes so-called guardrails that could ultimately sink efforts to incentive energy companies to develop new dispatchable power facilities. The bill caps the state Public Utility Commission's (PUC) proposed performance credit mechanism (PCM) — a novel system that would reward generators that provide reliable energy during high-demand times — at $500 million annually. Thomas Catenacci is a politics writer for Fox News Digital.
"Senate Bill 2012 is designed to end PCM," Brad Jones, the former president and CEO of the Electric Reliability Council of Texas (ERCOT), told Fox News Digital in an interview. "It's called a guardrail bill, but it's nothing similar to a guardrail. That's just because it sounds good to say 'guardrail.' It's actually designed to kneecap the PCM proposal."