OP Ed. 3 Texas Electric Market Tweaks from Pat Wood.

• At FERC I learned other states treat the damnd/supply issue by putting in place “insurance”
• This “insurance” to prevent blackouts works like this:
  • everyone pays their fair share
  • in effect, they pre-paying for future power supplies
• Texas PUC looked at this in 2013 and said no, but adopted the operating reserve demand curve
• Pat Wood prefers the operating reserve demand curve because:
  • Texas market design was designed to adapt
  • “it is key to ensure the market remains stout and reliable”

Dallas Morning News | Pat Wood III, principal of Wood3 Resources in Houston, is the former chairman of the Public Utility Commission of Texas and of the Federal Energy Regulatory Commission | The Texas electricity market needs a tweak to make sure we keep the lights on