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Since winter storm Uri sent prices skyrocketing, ERCOT has been shifting away from scarcity pricing and more towards regulatory measures in the form of reliability unit commitment (RUC) events. Although RUC’s have become ERCOT’s preferred method for controlling capacity shortages during extreme temperatures, there is an external cost on the market.

To provide greater insight on the RUC events, Jacob Schmidt analyzes relevant economic principles along with an array of ERCOT market data from Yes Energy’s DataSignals Cloud service to explore how ERCOT’s RUC process is reshaping the free market this summer.