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Electricity Market Design

The Public Utility Commission of Texas was charged by the 87th Texas Legislature and Gov. Greg Abbott in Senate Bill 3 with designing the Texas wholesale electricity market to ensure reliability of the state's electric grid at a reasonable cost to rate payers.

In December 2021, PUCT Commissioners unanimously adopted key principles, summarized here, to guide electricity market design that would:

  • Ensure adequate supply of electricity at all times, especially during periods of high demand.
  • Incentivize construction of on-demand electricity generation resources.
  • Keeps costs low through a competitive retail electric market.

In June 2022 the PUCT engaged Energy+Environmental Economics (E3) to study options for market design aligned with the principles and market design proposals adopted by the PUCT in its blueprint for reliability reforms.

The E3 study, PUCT staff memo and request for public comment can be found HERE.

The blueprint adopted by the PUCT for reliability reforms and market design can be found HERE

Public Comment

Texans are encouraged to share comments and feedback on the E3 study and recommendations. Comments and feedback should be provided within the parameters of the PUCT's blueprint for market design, E3's report and PUCT's staff memo, all linked above.

The PUCT is adding five days to the normal 30-day public comment period to accommodate for the Thanksgiving holiday. Comments are due by noon, Thursday, December 15, 2022, and should include a clearly marked Executive Summary, up to one page, labeled with the commenter's name as the last page of the filing. Please limit responses to 25 pages, excluding the Executive Summary.

PUCT Commissioners and staff will review and consider public comments and feedback in preparing the Commission's final market design plan.

Instructions on how to provide comments or feedback: Reliability Reforms - Submitting Public Comment

Reliability Standard

As directed by the 87th Texas Legislature in Senate Bill 3, the Public Utility Commission of Texas is developing a reliability standard for the Electric Reliability Council of Texas power region. PUCT staff filed a memo, Project No. 54584, on Tuesday, March 7, 2023, detailing previous work to establish a reliability standard and encouraging public and stakeholder input on the current process. The staff memo includes specific questions from staff for respondents to provide information and answers.

Initial comments are due no later than Wednesday, March 29, 2023 and the deadline for reply comments is Wednesday, April 5, 2023.

Important Filing Information ‐ All comments should reference Project No. 54584. Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should list each substantive recommendation made in the comments.

Office of Public Engagement

If you have questions about submitting comments or about the how to participate in the market design process, or would like someone from the PUCT to speak with your organization or group about how to participate in the public comment process, please contact the PUCT's Office of Public Engagement at