Texas Senators Question Electricity Pricing Plan

By: Associated Press
By: Associated Press

AUSTIN, Texas (AP) The Texas Senate's Natural Resources Committee has called the Public Utility Commission to talk about the pricing of electricity.

Committee Chairman Troy Fraser called commissioners to testify Monday in Austin amid reports it could change the wholesale electricity market.

Commissioners have long debated how to make sure Texas has enough electricity. Demand is growing, but generators say prices are too low to make investments in new equipment worthwhile.

Some experts suggest raising prices. Others want Texas to pay generators to keep standby capacity available when demand peaks, or equipment shuts down unexpectedly.

Fraser helped design the current market that only pays when electricity is bought. He's been critical of paying generators to keep reserves.

Some utilities also oppose a capacity market, saying it could cost consumers $4 billion a year.


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