Abstract
Utilities in Texas have several methods to exchange economy and emergency power under rules established by the Electric Reliability Council of Texas (ERCOT). The power exchanges permit utilities with temporary surplus energy to supply power to utilities with either a temporary shortage or higher marginal cost of generation. Frequently, a utility will sell power to another utility rather than reduce generation on a low marginal cost coal or lignite plant. These exchanges of power between utilities benefit the customers of both the selling and buying utilities. In HL&P's case, and I presume in other utilities' cases, revenue or cost savings flow directly through to the customers with no retained profit for the utilities.
Bracheen, L. (1989). An Assessment of the Technical Feasibility of Cogenerator Participation in the ERCOT Broker and Economy Programs. Energy Systems Laboratory. Available electronically from
https : / /hdl .handle .net /1969 .1 /148975.