It is a number set by Texas law as the maximum price of electricity [0]. The arguement that the commision used to justify staying with the maximum price seems s

It is a number set by Texas law as the maximum price of electricity [0]. The arguement that the commision used to justify staying with the maximum price seems straightforward: > At various times today, energy prices across the system have been as low as approximately $1,200. The Commission believes this outcome is inconsistent with the fundamental design of the ERCOT market. Energy prices should reflect scarcity of the supply. If customer load is being shed, scarcity is at its maximum, and the market price for the energy needed to serve that load should also be at its highest. [0] Actually, there are 2 maximum prices, and $9/PWh is supposed to be the greater of them. Due to the high price of natural gas, the "lower" maximum turned out to be more expensive, to the commission waved the rule that would have switch to using the other maximum.