On March 10, FIA sent letters to Texas officials, including Governor Greg Abbott, raising concerns about a recommendation made by a market monitor of the state’s utility commission for the grid operator to retroactively alter real-time wholesale electricity pricing for two days in February 2021 that experienced unusually high prices due to the Winter Storm Uri.
The letters highlight the importance of final settlement pricing in physical commodities and related derivatives markets, even in times of market volatility and stress. The letters caution Texas officials against taking action that could disturb confidence in the state’s energy markets, ultimately to the detriment of local businesses and residents.
In addition to Governor Abbot, letters were also sent to:
- The Lieutenant Governor of the State of Texas, Dan Patrick
- The Speaker of the Texas House of Representatives, Dade Phelan
- The Chair of the Senate Committee on Business & Commerce, Kelly Hancock
- The Chair of the Texas House of Representatives State Affairs Committee, Chris Paddie
- The Chairman of the Public Utility Commission of Texas, Arthur C. D'Andrea