ERCOT
The Electric Reliability Council of Texas — the independent system operator that manages the Texas electric grid, which covers ~90% of the state and is largely isolated from other U.S. grids.
Why It Matters
Texas's unique deregulated, isolated grid means Texas consumers face different market dynamics than most of the U.S. — including wholesale price volatility and unique solar/storage incentive structures.
Related Topics
Related Terms
Demand Response
A program where utilities pay customers to reduce electricity usage during peak demand events, often by cycling AC units, adjusting thermostats, or discharging batteries to the grid.
Grid Parity
The point at which the cost of solar electricity equals or falls below the cost of grid-purchased electricity, making solar economically competitive without subsidies.