A recent article in EnergyBiz, "Texas Mulls Capacity Market," is a bit behind the times.
In the article, PJM Interconnect CEO Terry Boston says that the reaction of Texas policymakers to a capacity market has been "fairly positive." Fortunately, nobody these days–at least in public–seems to have a positive opinion of the proposed $3.2 billion electricity tax that the PUC, generators, and Wall Street bankers were trying to impose on Texas consumers.
The turnaround on this is amazing. It was only last November that the PUC was moving full speed ahead with an ObamaCare-style intervention in the Texas electricity market.
Of course, the issue isn't dead by a long shot. Generators and regulators will likely be petitioning the Texas Legislature in 2015 for the authority to increase generation capacity in the market through regulatory intervention. The good news is that the numbers will show in 2015 the same thing they are showing today–that competition is the best way to ensure a reliable, affordable supply of electricity for Texas consumers.
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