A revised wholesale market structure must:

• Define specific reliability standards

• Incentivize sufficient resources in both quantity and reliability to reasonably meet the reliability standards

• Ensure resources perform consistently with their compensated obligations to contribute to reliability, enforcing performance through financial penalties for all resources that fall short

• Objectively quantify resource contributions to reliability

• Promote robust competition in the wholesale market through market-based mechanisms over out-of-market actions as much as possible

• Address mitigation of market power using well-established, non-discriminatory methods

• Ensure the comprehensive reliability market solution supports the highly successful competitive retail market in ERCOT

• In 2022, Texas broke 11 electricity consumption records in ERCOT, peaking at over 80,000 MW

• Texas’ population is growing by over 1,000 people per day, and expected to reach 47 million in 2050

• 33,000 MW of crypto mines have expressed interest in joining ERCOT

• The Texas Department of Motor Vehicles estimates 1 million electric vehicles will be connected to the grid and charging by 2031

• Today, 65% of residences use electricity for heating

• Industries are electrifying their systems to cut costs and meet environmental goals

• The average large natural gas or coal generation plant in ERCOT is about 30 years old