As a result, the market opened up to competition, forcing both the utilities and newly developed or established retail energy suppliers to come up with more competitive electricity rates and plans. This meant that the utilities had to give their customers the option to choose their energy supplier. In 1999, Texas legislature required the state to deregulate their energy. ERCOT also has about 1,400 organizations and entities that deal with Texas Transmission electricity at some point during the consumption, buying, and selling process. During peak times, the they can generate over 77,000 mega watt (MWh) of electricity, where one MWh can provide power to approximately 200 homes. Overall, ERCOT manages over 46,000 circuit miles of high voltage transmission, with more than 550 generating units. This means that all electric utilities are linked together within the Texas Interconnection and run at 60Hz (on average, and during normal system conditions). It is also a non-profit, membership based organization. These two entities are, the Public Utility Commission of Texas and the Texas Legislature. There are two entities that have jurisdiction over ERCOT. It provides power to around 24 million Texan customers, using about 85% of the electric power within the state. Today, ERCOT is one of North America’s ten ISOs. An ISO is responsible for running the electricity grid for an area, and for providing reliability planning as well as the area’s wholesale electricity rates. Electric Reliability Council of Texas (ERCOT)ĮRCOT became an Independent System Operator (ISO) in 1996. Texas has the ability to provide its own power to its consumers. There is one major thing that makes ERCOT or the Texas Interconnection different from most other grids in America and that is the fact that isn’t connected or linked to any other grid within the United States. ERCOT is currently the state’s central operating coordinator for electricity. In the later half of the twentieth century, TIS shifted over to what is now known as the Electric Reliability Council of Texas (ERCOT). The Texas Interconnection itself covered most of the state and helped companies like Aluminum smelting factories along areas of the Gulf Coast generate power. Near the beginning of World War II, the state of Texas formed the Texas Interconnected System (TIS), making the Texas Interconnection one of three small alternating current (AC) power grids available in North America at the time.
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