Following deregulation of major portions of the electric market in 1999, Texas’ “energy-only” electric
market operated as designed, with lucrative compe ion keeping electricity prices low. With the various
market participants and the Electric Reliability Council of Texas (ERCOT) generally managing the
grid, the Public Utility Commission of Texas (PUC) never had cause to take a step back and consider
how things were working, how it might improve operations, or what funding and staff may be needed
to do so. Winter Storm Uri completely changed this dynamic. In February 2021, Winter Storm Uri
exposed unacceptable vulnerabilities in the state’s electric grid. Critical electric and water utilities failed,
almost 11 million Texas homes and businesses lost power or water for days, and tragically, more than
200 people died.
In response to the disaster, the Legislature completely overhauled PUC’s and ERCOT’s governance
structures and made numerous changes to the electric industry and market. To keep a close watch on
the implementation of these significant changes and identify other needed changes to their operations,
the Legislature also moved up the Sunset date for these en ies, as well as the Office of Public Utility
Counsel (OPUC), two years to 2023.