3 concepts at forefront of decision-making
By John W. Fainter Jr.
Texas Insider Report: AUSTIN Texas Texas staggering population and economic growth has created concerns that
we could face a shortfall of electricity on the hottest summer days. It may not actually occur this summer or the next but given
that it takes years to go through the permit process and build a power plant
its an issue that concerns us right now.
Yet just when we need more power economic conditions constrained credit markets low natural gas prices and low wholesale electric prices are making it difficult to attract the investment companies need to build new power plants. This is a bigger problem here than anywhere else.
Despite weak economic conditions nationwide Texas is still adding residents and businesses growing our economy at an impressive rate.
The Public Utility Commission has already taken several steps to encourage construction of more power plants adjusting price signals commissioning studies of other electric markets best practices and gathering feedback from
the Electric Reliability Council of Texas and other experts to determine the best path forward.
This is not a legislative issue. Years ago our legislators took a long view towards constructing and maintaining a competitive electric market and this is exactly the type of issue under the PUCs purview. The PUC is already working with all stakeholders to further enhance our competitive reliable electric market where risks are on the shoulders of investors rather than electric customers.
Nevertheless some groups want some possible competitive options taken off the table even at this crucial time. That would be a mistake because it is essential that the Public Utility Commission of Texas carefully consider all possible solutions.
As they move forward there are three important concepts that need to remain at the forefront of any decision-making on this issue.
First we must maintain the competitive spirit of the successful wholesale electric market. While were facing challenges today Texas longstanding focus on competition has served us all well bringing the most efficient generation along with low prices and reliability to electric customers.
Second we can rely on the expertise and authority of the PUC as it considers all available options to encourage more electric generation. The PUC was established precisely to deal with these types of thorny technical issues and to do
so while fulfilling its stated mission to protect customers foster competition and promote a high-quality infrastructure.
Third we should consider the long-term effects of the possible solutions under consideration. I am confident that we will find a solution that maintains the competitiveness of our electric market while ensuring a continued reliable supply of power.
This is not an issue to be taken up by the Legislature. The PUC has focused on this issue for months and made substantial progress on rules to encourage more electric generation.
Our commissioners have the ability and authority to keep the competitive wholesale and retail markets strong benefiting consumers and our economy.
John Fainter is president & CEO of the Association of Electric Companies of Texas.
