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Don't Mess With Texas

America’s energy competition laboratory prepares to build.

Fortnightly Magazine - October 2006

range from Jan. 1, 2008 to Oct. 1, 2009. Recent PUCT deliberations on the market design referred to July 2009 as a more realistic date. The PUCT recently has approved the TNM protocols. Further, ERCOT and stakeholders have formed a stakeholder Transition Plan Task Force accountable for reviewing and approving business requirements and design components related to the transition to nodal pricing.

The Lone Star State is famous for its bravado and self confidence. The performance of its competitive energy markets gives Texas bragging rights that others envy. Now Texas is turning its focus to the next stage of the power business cycle—buildup. If announcements like TXU’s coal-plant expansion are any indication, it’s going to be a fascinating ride into the future.



1. On July 17, 2006, ERCOT set a new record peak load of 62,396 MW, exceeding the previous record demand by 3.5 percent.

2. PUCT Project Number 24255: Rulemaking Concerning Planning Reserve Margin Requirements.

3. Senate Bill 408.

4. This continues to be true despite the fact that higher natural-gas prices have provided improved on-peak spark spreads for new, highly efficient gas-fired generation.

5. Substantive Rule 25.501 (Project 26376: Rulemaking proceeding on wholesale market design issue in ERCOT).