PUCT Files Draft Rule on Wholesale Market Oversight
The Texas Public Utility Commission (PUCT) filed a proposal on August 6 that would revise the outdated process currently being used by the Electric Reliability Council of Texas (ERCOT) to “monitor compliance [by market participants] with wholesale market reliability requirements.”
One of the main catalysts for the draft rule, PUCT said, was the phase-out of ERCOT’s own Compliance Office in 2010, and the displacement of its services to the Texas Reliability Entity established the same year. Because the existing contract with the Texas RE expires on December 31, 2015, the PUCT must have a contract for a Reliability Monitor in place by no later than year-end.
As amended, §25.503 (Oversight of Wholesale Market Participants) would require the PUCT and ERCOT to contract with a third party selected by the commission to serve as the Commission’s Reliability Monitor for the ERCOT Region. While ERCOT will continue to fund the operations of the Reliability Monitor from the system administrative fee, the amendments clarify that the Reliability Monitor will work under the direction and supervision of the commission. The revisions also outline the criteria to be used by the commission in selecting the Reliability Monitor.