New price protections approved during power emergencies

AUSTIN (KXAN) — The Public Utility Commission of Texas (PUCT) voted Thursday to approve new price protections for consumers during power emergencies.

The utility commission said the Emergency Pricing Program (EPP) would be for the Electric Reliability Council of Texas (ERCOT) power region.

“Implementing the Emergency Pricing Program provides another layer of financial protection for Texas consumers and will ensure their electricity bills remain affordable even when conditions are tight in the ERCOT system,” PUCT Executive Director Thomas Gleeson said. “This is a key part of our ongoing work to ensure electric reliability for Texans at a reasonable cost.”

According to PUCT, current rules cap wholesale electricity offers at $5,000 per megawatt hour, or MWh.

“The new EPP will trigger if system-wide energy prices hit the $5,000 per MWh HCAP threshold for 12 hours within a rolling 24-hour period. When the EPP is activated, a new emergency offer cap (ECAP) will take effect, reducing the cap on wholesale electricity offers to $2,000 per MWh and ultimately further protect consumers,” PUCT said.

The commission said it would stay in effect until 24 hours after the EPP is activated or, if ERCOT was in emergency operations while the EPP is active, 24 hours after ERCOT exits emergency operations.

PUCT said ERCOT would be required to issue a notice both when the EPP is activated and when the EPP ends.

“While the EPP is active and to account for variability in fuel costs, generators are eligible to be reimbursed by ERCOT for any actual marginal costs they incur above the $2,000 per MWh emergency offer cap,” PUCT said.

According to the commission, beginning Jan. 1, 2026, PUCT said it would conduct a full review of the EPP and all other cap programs every five years to evaluate their performance.