By Eileen O’Grady
HOUSTON, March 3 (Reuters) – Dan L. Jones, a vice president
of Potomac Economics which serves as the independent market
monitor for the $35 billion Texas power market, submitted his
resignation Monday, a spokesman for the Texas Public Utility
Commission (PUC) confirmed.
Jones has been active at the PUC in the ongoing debate about
the need for reform of the Texas power market where demand is
growing faster than supply.
Jones will leave his position as director of the independent
market monitor for the Electric Reliability Council of Texas
(ERCOT) no later than March 17, said Terry Hadley, a PUC
spokesman said.
In a note to the three-member commission, Jones said his
resignation “is the right decision for me and my family at this
point in our lives and in my career,” according to Hadley.
“Dan set a very high standard in monitoring the ERCOT
market,” Hadley said.
Jones served as director of the ERCOT wholesale market since
2006 and led a staff at Potomac which will continue in the
market monitor role, said Hadley.
Jones declined to give further comment on the reasons for
his resignation.
He and other Potomac officials have generally supported
creation of a capacity market as a way to increase revenue for
power-plant owners and newcomers looking to invest in the Texas
market.
Potomac’s analysis of the Texas power market put the
spotlight on falling wholesale prices that make it difficult for
generating companies to be profitable under existing market
rules.
The PUC, legislators, large industrial users and other
market participants are now divided over how to address the
slowdown in new power-plant investment and the issue is likely
to remain unresolved until the Texas Legislature meets next
year.
Jones was a policy analyst at the PUC from 1994 to 1999 and
served as a commissioner’s adviser.
Separately on Monday, ERCOT extended its call for residents
and businesses to conserve power as a late winter cold front
boosted power consumption to a monthly record, straining
available generation.
Power producers in Texas include Luminant, a unit of
privately held Energy Future Holdings, NRG Energy
, Calpine Corp, NextEra Energy, Exelon
Corp, LS Power and Panda Power Partners.
