Katie Coleman Quoted in Platts Megawatt Daily on TIEC

“Parties debate need for Houston Import Project”

Katie Coleman, an attorney representing Texas Industrial Energy Consumers, said, “We certainly don’t want any transmission that is not necessary, that is not justified.”

“We took Calpine and NRG’s concerns very seriously from the beginning,” Coleman said. “We have become more and more convinced that this project is not just needed, it’s very urgently needed. … While you have high … prices in the Houston region, you’ve got suppressed prices outside the Houston region.

For the year to date, the ERCOT Houston Hub, day-ahead and real-time on-peak prices exceed those of the other three hubs, North, South and West, by an average of 1.9% and 3.5%, respectively, according to Platts price database.

However, generators are unlikely to build enough capacity to equalize the prices, Coleman said, because “they understand that as they build enough to displace a high-cost generator, the price is going to collapse.”