Texas’ cold winter and hot summer in 2011 triggered debate on how best to guarantee long-term grid reliability. In 2014, regulators decided against a standard forward capacity market for an energy-only market design. This decision has likely saved Texas consumers billions even as reliability improved, evidencing an energy transition driven by load reductions, incread renewables generation, and cheap natural gas.
California’s cap-and-trade program should be viewed as part of the state’s comprehensive package of climate policies. Yes, greater legal certainty will help, but keep in mind high carbon prices aren’t a goal of California’s climate policy. The goals are emission reductions, efficiency, consumer protection, and growing businesses set to compete in the 21st century economy.