In December, two consulting firms CRA International Inc. and Resero Consulting provided an updated cost-benefit analysis for the proposed Electric Reliability Council of Texas nodal market conversion. The firms were retained by the Public Utility Commission of Texas to prepare an update on the 2004 Cost-Benefit Assessment (CBA) of the Texas nodal market and to analyze the incremental costs and benefits given changes that have transpired since the 2004 assessment and the PUCT’s subsequent decision to implement a nodal market.
The new analysis, titled “Update on the ERCOT Nodal Market Cost-Benefit Analysis,” was developed by the same consulting team that conducted the 2004 analysis. Despite rising conversion costs, the new analysis shows a potential consumer cost savings of $5.6 billion from shifting to fully locational pricing of wholesale electricity in ERCOT. Read the Report Here.