One of the seven regional transmission organizations and independent system operators that operate in the US, ERCOT manages the Texas Interconnection, the electric grid in most of Texas. Because the Texas Interconnection is not connected to any other grids, ERCOT is not subject to the regulatory authority of the Federal Energy Regulatory Commission, including its regulations regarding rates and transmission. Instead, ERCOT is overseen by the Public Utility Commission of Texas.

ERCOT:

ERCOT manages about 46,500 miles of high-voltage transmission and 179,000 megawatts (MW) of generation resources. In the ERCOT region, natural gas accounts for about 44% of the electricity generated, coal accounts for 29% and wind accounts for 15%.

ERCOT operates an energy-only market where generators are paid only when they provide power to the grid on a day-to-day basis. This is in contrast to the capacity markets, where generators are paid for keeping their plants ready and available to be dispatched.

For more information on ERCOT, see Country Q&A, Electricity Regulation in the United States: Overview.