Texplainer: What's an Energy Capacity Market?

Hey, Texplainer: I hear that Texas might transform its energy market, shifting from “energy only” to a “capacity” market. What does that mean, and why does it matter?   

Such questions stem from a broader one: Will Texas have enough energy to meet its future needs? That has been the biggest concern of electricity providers and regulators in recent years as the state rapidly grows and dry, scorching summers send air conditioners blasting and guzzling more power.

The Electric Reliability Council of Texas, the nonprofit that operates the state’s energy grid, has forecast that the state’s reserve margin — the ...

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