Texas PUC Staff Formally Propose Elimination Of Small Fish Swim Free Rule; Also Considering Other IMM Market Power Mitigation Recommendations

AI generated summary

The Texas Public Utility Commission (PUC) Staff has proposed the elimination of the 'small fish swim free' rule, as outlined in 16 TAC § 25.504(c). This rule currently states that a generation entity controlling less than 5% of the installed generation capacity in the Electric Reliability Council of Texas (ERCOT) is not considered to have market power. The proposal aligns with recommendations from the Independent Market Monitor (IMM), which suggests that the removal of this rule could enhance market dynamics.

In addition to the proposed rule change, the PUC Staff is also evaluating further recommendations from the IMM regarding market power mitigation. If the proposal is approved, the Staff plans to seek public comments on an IMM suggestion for a three-step process aimed at addressing market power at both system and zonal levels. This approach will allow stakeholders to provide feedback on both the rule changes and the IMM's recommendations in a single submission, although no immediate action is being requested from the Commission on the three-step process.