Energy experts say a contract between the Public Utility Commission and E3 Consulting casts a shadow of bias over the redesign process for Texas’ deregulated power market.
The PUC — saying it wants an impartial review of the market overhaul proposals — has hired E3 to analyze the plans, including its own.In October, Colorado-based E3 Consulting offered a plan for how the Public Utility Commission should redesign Texas’ deregulated power market. It produced a 44-page proposal, paid for by energy giants NRG and Chicago-based Exelon.
“Through this competitive process, it was determined E3 presents the best value to Texans for this project,” he wrote.But energy experts said the contract casts a shadow of bias over the market redesign process. — and electricity retailers — those who sell power to consumers — contract directly with power generators to make sure they have enough generation to meet demand. Similar markets, however, have the grid manager — such as the Electric Reliability Council of Texas — contract with generators to ensure they have enough power, said Oliver Kerr, head of the U.S. division of Aurora Energy Research.
Potomac monitors ERCOT to ensure companies don’t cheat in the wholesale power market, where power producers compete to supply the cheapest electricity.
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