The Public Utility Commission of Texas (PUC) is set to vote Thursday on a proposal that is meant to help ensure reliability with the state’s power grid.
The measure would also all but guarantee that millions of Texans would see an increase on their electric bill.
Governor Greg Abbott is among those who have publicly encouraged the PUC to approve the proposed Performance Credit Mechanism.
Credits would incentivize power generators and power providers to keep the electricity flowing 24/7/365 no matter what the demand on the grid is, or what effect extreme weather has on the system.
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The estimated cost for providing the incentives is at least $460 million, which would ultimately be passed on to electricity customers in the state.
“Time is of the essence. Texas is adding new residents and businesses every year, and the demands on the power grid will continue to grow,” Governor Abbott wrote in a letter to the members of the PUC in support of approving the credit system. “I have full confidence that you will be able to meet this new demand by adopting and implementing a new market design that prioritizes reliability and meets the directives passed during the last legislative session.”
