ERCOT's Role

Under the regulation of the Public Utility Commission of Texas (PUCT), ERCOT performs three main roles in managing the electric power grid and marketplace.

Ensures the Grid Can Accommodate Scheduled Energy Transfers

ERCOT monitors schedules submitted by wholesale buyers and sellers for the next day's electricity supply. ERCOT ensures the system can accommodate those schedules and, if necessary, creates a new market to fill the gap.

Ensures Grid Reliability

ERCOT ensures electricity transmission reliability by managing the incoming and outgoing supply of electricity over the grid. ERCOT monitors the flow of power and issues instructions to generation and transmission companies to maintain balance.

Oversees Retail Transactions

ERCOT serves as the central hub for retail transactions. When a consumer chooses a retail electric provider, ERCOT ensures the information related to that transaction is conveyed to the appropriate companies in a timely manner.