TXOGA Statement in Support of CSSB 2012

AUSTIN – Todd Staples, President of the Texas Oil & Gas Association (TXOGA) today issued the following statement in support of CSSB 2012, related to the electricty market and performance penalties, which will be heard today in the House State Affairs Committee:

“Texas consumers do not want to give electricity generators a blank check. New, untested and unproven programs like the Performance Credit Mechanism (PCM)—that is based on administratively determined pricing—must have checks and balances to protect consumers. Without strong safeguards, the PCM dramatically shifts risk away from generators to homeowners and businesses, and compromises our market-driven system.  Texas can meet its goals of a reliable and affordable electricity grid and we applaud the members of the Legislature, Governor Abbott, Lt. Governor Patrick and Speaker Phelan for making consumer protections a priority as improvements continue to be made to the ERCOT system.

“We support CSSB 2012 by Chairman Hunter because it will establish robust guardrails to protect both businesses and consumers by:

– adopting a price cap for performance credits to generators, if the PCM is implemented;
– requiring a costs and benefits to consumers study;
– ensuring credits are paid for actual performance;
– establishing penalties for generators who do not perform;
– providing transparency through rulemaking; and
– setting a date for sunset and full review of the PCM.

“TXOGA thanks Chairman Hunter and the Committee for their consideration of this important committee substitute and we look forward to our continued work with the Legislature to protect consumers and ensure grid reliability.”

In January, TXOGA issued a statement on the Public Utility Commission’s vote recommending the creation of the PCM.


Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.

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El Paso - The Texas Oil and Gas Association (TXOGA) has partnered with Marathon Petroleum Corporation’s El Paso Refinery to bring the Mobile Energy Learning Unit (MELU) to five schools in El Paso this week, providing hundreds of elementary students a unique opportunity to learn about STEM education and careers in energy through the hands-on, interactive learning exhibit.

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