News Room

Texas Competitive Power Advocates (TCPA) is a trade association representing more than a dozen power generators, wholesale power marketers and retail electric providers with business in the Electric Reliability Council of Texas (ERCOT) wholesale and retail electricity markets.

TCPA's mission is to support and promote competitive wholesale and retail markets that ensure abundant, reliable and affordable electricity is available to Texas consumers.

In this section, please find information about TCPA's activities and positions.

TCPA News Releases Return to top

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TCPA In The News Return to top

As Dallas-Fort Worth residents are becoming more interested in what is in the air they breathe and how it could impact their health, state and federal regulators and environmental groups are looking at methods -- some of them punitive -- to improve local air quality.

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As new attention is drawn to what is in the air Houstonians are breathing and how it could be impacting their health, a number of companies in the electric power industry -- including several located in Houston -- are urging significant changes to their own industry that would allow them to help clear the air.

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Background on Texas Nodal Return to top

The rationale for transitioning to this superior market design

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The Houston Zone could realize an immediate decline of $886 million in the overall wholesale cost of providing electricity, with almost $6 billion saved over a 10-year period.

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In 2003 consumers in the South Zone paid 229 percent more of $400 million in statewide congestion costs than they generated.

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The Northeast Zone could realize an immediate decline of $12 million in the overall wholesale cost of providing electricity, with $127 million saved over a 10-year period.

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The West Zone could realize an immediate decline of $13 million in the overall wholesale cost of providing electricity, with $199 million saved over a 10-year period.

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Numerous independent reports point to the benefits of a nodal market design

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A reality check on claims by opponents of the nodal market design

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A look at the companies that comprise TCPA and the organization's mission

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Hard numbers that show just how much congestion problems in today's market are costing Texas consumers

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TCPA's summary of PUC Rule 25.501 adopted by the Public Utility Commission of Texas on August 21, 2003 to begin the transition to a nodal market

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A timeline of the transition to Texas nodal, based on PUC staff explanations in Spring 2004

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Background On Other Electricity Markets Return to top

Read how other electricity markets are faring under the nodal market design with locational marginal pricing

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Read about the PJM market, which serves the mid-Atlantic region

Visit the PJM Site

Read about the New England ISO

Visit the New England ISO Site

Read about the Midwest ISO

Visit the Midwest ISO Site

Reports and Presentations Return to top

In 2001, the PUCT ordered that the ERCOT market should be re-designed when the increased costs due to "local" transmission congestion exceeded $20 million in any 12 month period, This threshold was exceeded in March 2002 after the ERCOT market had been operating for just seven months. Since then, hundreds of millions in local congestion costs annually.

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During the interim of the 78th Legislature, the Lieutenant Governor issued the following charges to the Senate Committee on Business & Commerce (the Committee): Interim charge number five charged the Committee to study and make recommendations on improving the on-going implementation of SB7 (76th Legislature). Interim charge number six charged the Committee to study and make recommendations relating to improving the potential for further renewable energy development in Texas and the effectiveness of current policies encouraging the use of renewable energy sources. This study should focus on the State's capacity for wind generation, current efforts by the General Land Office (GLO) to commercialize wind generation on state lands, and solutions to the constraints on utilizing wind potential to its fullest. Include an analysis of state and federal mandates, federal tax credits, wind potential, transmission constraints, economics of electricity production and delivery, and environmental considerations.

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This report outlines the committee’s examination of the issues, presents the facts and data obtained by the committee, raises legislative concerns, and summarizes the recommendations of the committee with regard to its interim charges.

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Learn some of the terms and definitions that are used in electricity jargon

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Adoption of a nodal power market design in the Electric Reliability Council of Texas (ERCOT) would reduce the cost of providing electricity by an average of more than $800 million a year.

Download the Full Release Download the Full Study Download Study Appendix 1 Download Study Appendix 2 Read the Entire Study Online

In response to a request by the Market Oversight Division, Potomac Economics analyzed the operation of the ERCOT wholesale market for the period January-September 2004. The main focus of the study was to explain what situations ERCOT operators face in real-time operation, what problems are causing operational concerns, and what steps are needed to address those operational concerns to improve market operation.

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Full 2003 State of the Market Report prepared by Potomac Economics

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Joel Mickey explains that the current zonal market structure contains numerous inconsistencies that require a lot of guesswork by ERCOT operations staff and notes that many of these problems would be solved by nodal market design.

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Professor Baldick explains how a nodal market design would lead to the most economic dispatch of the state’s electric generating facilities

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Mr. Helton explains ERCOT’s operational difficulties with current market design

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Mr. Griffey notes that a nodal market design creates the right incentives to correct much of the state’s congestion problems

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Media Contacts Return to top

Marianne Carroll, Executive Director
Texas Competitive Power Advocates
c/o Brown McCarroll LLP
111 Congress Avenue
Suite 1400
Austin, Texas 78701

voice: 512-479-1156

e-mail: mcarroll@mailbmc.com