What is ERCOT and how does it work?

2022-08-28 07:00:02

What is ERCOT and how does it work?

As an Independent System Operator, ERCOT doesn't own the assets nor does it make electricity. Instead, it monitors all the moving parts that keep electricity flowing from power creators - like companies that run wind turbines and natural gas plants - into Texans' homes and businesses.

What companies are under ERCOT?

The scope of the ERCOT grid is massive: the organization manages electric delivery for over 24 million Texan homes and businesses, relying on a power grid that spans over 46,500 miles.
Texas Electricity + ERCOT
  • AEP Texas Central.
  • AEP Texas North.
  • CenterPoint.
  • Oncor.
  • TNMP.

What is ERCOT responsible for?

Overview. Founded in 1970, ERCOT is an independent, not-for-profit organization responsible for overseeing the reliable and safe transmission of electricity over the power grid serving most of Texas.

Who funds ERCOT?

ERCOT projects are paid for by public funds from the System Administration Fee. ERCOT's revenues are uncertain, fluctuating with power consumption. For the average residential customer, this price has increased from $1.32 in 2001 to $5.04 in 2010.

Is ERCOT regulated?

ERCOT is regulated by the state government. ERCOT and electric utilities answer to the state Public Utility Commission, whose board is appointed by Gov. Greg Abbott. And everyone answers to the Texas Legislature, which can write laws to regulate any part of the system.

Is ERCOT a federal government agency?

ERCOT is technically not a government agency

According to ERCOT, the agency is a "membership-based 501(c)(4) nonprofit corporation." Such non-profits "operate primarily to further the common good and general welfare of the people of the community" in order to be a tax-exempt organization.

How is ERCOT funded?

ERCOT is chartered by government, directed by government regulation, and governed by government entities. Its funding is from a tax on electric consumers on each monthly bill. The fact that its board is 'independent' is a fig leaf, as is its status as a 501c4 organization.

Who has jurisdiction over ERCOT?

Public Utility Commission of Texas

The Public Utility Commission of Texas (PUCT) has jurisdiction over activities conducted by the Electric Reliability Council of Texas (ERCOT). ERCOT is governed by a Board of Directors made up of independent and ex officio members.

How much are ERCOT board members paid?

The median estimated compensation for executives at Ercot including base salary and bonus is $218,397, or $104 per hour. At Ercot, the most compensated executive makes $518,000, annually, and the lowest compensated makes $36,655.

What is the salary of ERCOT CEO?

paid its president and CEO $461,768, according to its 2018 tax form.

How much is the CEO of ERCOT paid?

Indeed, there are profits being made — including the personal profit of the ERCOT CEO, who is paid a whopping $883,000 annual salary to run an electric system that has proven it just doesn't work.

Is ERCOT a nonprofit?

ERCOT is a membership-based 501(c)(4) nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature.

Is ERCOT privately owned?

ERCOT is a “private company that was basically hired by the PUC to” run the grid, he said.

Who owns ERCOT energy in Texas?

The Electric Reliability Council of Texas, Inc.

(ERCOT) is an American organization that operates Texas's electrical grid, the Texas Interconnection, which supplies power to more than 25 million Texas customers and represents 90 percent of the state's electric load.
Electric Reliability Council of Texas.
ERCOT headquarters in Austin, Texas

What parts of Texas are not in ERCOT?

Xcel Energy said the southwest tip of Texas, which is the El Paso area, and some parts of southeast Texas are also not on the ERCOT grid. Reeves said three Panhandle counties, Hardeman, Cottle, and Childress are part of ERCOT, although some parts of Childress County are served by co-ops that are part of SPP.

Is TXU part of ERCOT?

A subsidiary of Vistra Corp, it is one of the largest retail electricity providers in Texas.
TXU Energy.
TypePublic company
Area servedDeregulated regions of Texas
ProductsRetail electricity plans and products
Number of employees1,000
ParentVistra Corp

Is El Paso Electric in ERCOT?

El Paso, the westernmost city in the state is not part of ERCOT, the Electric Reliability Council of Texas, which manages 90 percent of the flow of electric power to customers in Texas. ... “EPE is not part of the ERCOT system,” the notice says.

Is the Southwest Power Pool part of ERCOT?

SPP has many of the high voltage direct current (DC) ties which connect the Eastern interconnection to the Western Interconnection and both of the DC ties to ERCOT Texas Interconnection.

Who owns the Southwest Power Pool?

In October of 2015, NIPCO joined Southwest Power Pool (SPP) a Regional Transmission Organization (RTO), as a Transmission Owner (TO).

Who belongs to the Southwest Power Pool?

SPP has members in 14 states: Arkansas, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming. SPP also provides contract reliability coordination services in Arizona, Colorado and Utah.

Who controls the Southwest Power Pool?

the Federal Energy Regulatory Commission

Southwest Power Pool (SPP) is a regional transmission organization (RTO): a nonprofit corporation mandated by the Federal Energy Regulatory Commission (FERC) to ensure reliable supplies of power, adequate transmission infrastructure, and competitive wholesale electricity prices on behalf of its members.