"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 301c3 organization.
... ERCOT is chartered as “a membership 501c(4) nonprofit corporation” should not put form over substance, certainly to political economists, not to mention analysts, media, and the general public.
... Texans who lost loved ones and suffered property damage during last week’s winter storm have started to file lawsuits against the Electric Reliability Council of Texas, holding the grid operator responsible for failing to maintain power for days as outside temperatures plunged below freezing.
... seeking monetary damages may be in vain.
ERCOT has sovereign immunity, a well-established legal principle that protects governmental agencies from lawsuits.
ERCOT, a private nonprofit corporation overseen by the Texas Legislature and the Public Utility Commission, is the only grid manager in the country with such protections.
• Founded in 1970
– Independent Retail Electric Providers
– Cooperatives
– Investor-Owned Utilities
– Independent Generators
– Municipals
– Independent Power Marketers
• The Texas Legislature enacted laws which govern all activities of ERCOT – See Public Utility Regulatory Act (PURA) Section 39.151.
• The Public Utility Commission of Texas (PUC) has complete authority over ERCOT’s finances, budget and operations, with oversight by the Texas Legislature.
... Fulfills four responsibilities required by law as the independent organization certified by the PUC (PURA Section 39.151):
‒ Maintain electric system reliability
‒ Facilitate a competitive wholesale market
‒ Ensure open access to transmission
‒ Facilitate a competitive retail market
• Budget is approved by the Board and the PUC biennially.
• Funded by a System Administration Fee to cover its system costs.
– Current fee is 55.5 cents per megawatt hour (MWh).
– One megawatt of electricity can power about 200 Texas homes during periods of peak demand.
– Average cost of $7/year (50-60 cents/month) for residential households.
Another fig leaf is the “antitrust admonition” for the legal monopoly (for approximately 90 percent of the Texas market or 26 million customers).
... Half of ERCOT’s ‘independent’ directors have resigned to date.
Another resignation involves one of the government agencies overseeing ERCOT.
ERCOT is not only a government agency, it is a central-planning agency outside of the free market."