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PUC Staff Propose Elimination Of “Small Fish Rule”
Excerpt from Staff Memo and Proposal for Publication:
“Commission Staff proposes amendments to existing 16 Texas Administrative Code (TAC) §25.504 relating to Wholesale Market Power in the Electric Reliability Council of Texas Power Region. Commission Staff’ s proposal would remove subsection (c) from the rule, which currently prevents a generation company controlling less than 5% of ERCOT’s total installed capacity from being considered to have market power (commonly known as the “Small Fish Rule”). This change would implement a recommendation made by the Independent Market Monitor’ s (IMM) in its State of the Market reports. Commission Staff recommends the Commission approve these proposed changes for publication in the Texas Register.
If the Commission approves this proposal for publication, as recommended, Commission Staff intends to file an additional memo requesting comments on a related issue involving a different recommendation from the IMM ‘ s 2024 State of the Market Report. Specifically, Commission Staff intends to request feedback on the IMM’ s proposal to use a three-step process to mitigate market power at system and zonal levels. For the convenience of interested commenters, Commission Staff plans to allow commenters to provide feedback on both the proposed rule changes and the IMM’ s recommendation in a single filing.
Commission Staff is not requesting Commission action on the issue of the IMM’ s proposed three step process at this time but will be available to discuss this issue at the open meeting, if requested.”
(Staff Recommendation) Proposal for Publication of Amendments to 16 TAC §25.504 (08/13/2025)
Project 58379
(Review Of §25.504 – Wholesale Market Power In The ERCOT Region)
