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In the summer of 2011, Texas experienced extremely low reserve margin periods throughout the state…causing average wholesale electricity prices to skyrocket to more than twice their normal level. Given that Texas is expected to add another 14 million to its population between 2010 and 2030,1 these shortages raise alarms about the state’s ability to meet future energy demand. Success will depend upon finding the most effective way to incent the development of more capacity. Unlike many other states, Texas has had a competitive retail market for electricity since 2001, replacing the traditional cost of a service-based regulated ma... More »
