Attorney General Ken Paxton has responded to a request for opinion from Lt. Gov. Dan Patrick on whether the Public Utility Commission has legal authority to issue orders affecting pricing for the wholesale electricity market and ancillary services. In his response, AG Paxton notes that the Utilities Code vests the PUC “with broad authority to oversee and supervise the Texas electricity market” and that the PUC may delegate establishment and enforcement of rules governing the electricity market, but these actions remain subject to PUC oversight and review. In his summary, Paxton concludes that the PUC’s authority over ERCOT likely allows it to order wholesale electricity and ancillary services price corrections, and also that courts would likely find such corrective action would “not raise constitutional concerns.” For more information, please see AG Paxton’s opinion here.
