Today marks the first day in my role as Chief Executive Officer for the Electric Reliability Council of Texas (ERCOT).  It is a role that I look forward to and one that has immediate significant challenges, not the least of which is the current concern over wrongdoing inside the organization.  As I begin my service at ERCOT, I want to assure you that I will aggressively look into the events under investigation and the actions taken in response to those events.  I want to make it clear that I am fully committed to doing everything I can to support the investigations already under way at the Public Utility Commission of Texas and the Texas Department of Public Safety. 

It is unfortunate that the actions of a few employees, who have betrayed the trust of this organization and their fellow employees, have cast aspersions on ERCOT’s reputation.  At the same time, we cannot simply write this off as another example of workplace fraud.  Because of the critical role ERCOT plays in maintaining reliable electric service and a well-functioning market, ERCOT must achieve the highest standards of integrity. 

I pledge my absolute commitment to working closely with the PUC and the auditors currently reviewing ERCOT’s management practices and controls, and to act decisively to implement any changes that are needed.  I will work with the PUC and the Legislature in a spirit of openness and cooperation to make sure ERCOT meets the needs of the Texas electricity market, consistent with the public interest. 

I fully understand the importance of having the public’s confidence that ERCOT will maintain the reliability of the electric transmission grid and the fairness and integrity of the electricity market.  ERCOT must provide these services in the most cost-effective manner possible, continually pursuing opportunities for improvement in its business processes and performance.

I am proud to be joining ERCOT.  Its successes should not be lost in the current public focus.  ERCOT employees have worked very hard to maintain unfaltering system reliability and to build the most successful retail electric market in the nation.  They have responded admirably to the ever-increasing requirements of supporting a constantly improving and complex market. 

I again assure you that I will not rest until we make the improvements needed.  I am confident that the dedication and ethics of ERCOT’s employees, and their ongoing high performance and commitment to success, will earn and restore the public’s trust and confidence.

Thomas F. Schrader