The City would request that the State of Texas assist in ensuring that the Nodal Pricing Auction Process is fairly averaged. The current written language in regards to Nodal Pricing is that where the current pricing when purchasing energy are not averaged. Balancing of energy market bids are taken at the highest amount instead of doing an averaged weighted method, therefore hurting the consumer.

When SB7 was passed, it was crucial that any local community would have access to power anywhere within the ERCOT (Electric Reliability Council of Texas) service area and pay the same price for the transmission of the power from any generator. Unfortunately, at times of increased demand, inadequate transmission has resulted in the need for ERCOT to manage transmission congestion by balancing power production and power flows over the wires. The balancing activities impose costs in the form of payments to generators who are told to either increase or reduce production to balance transmission flows. Currently, these increased costs resulting from congestion are spread evenly to all customers within the ERCOT service area. However, last year the PUC (Public Utility Commission) decided to undertake a wholesale market redesign in ERCOT, which would fundamentally alter the pricing for transmission congestion by assigning congestion costs zonally, and perhaps locally. By assigning the costs zonally or locally, electric bills in South Texas, in particular Laredo, Corpus Christi and the Valley are expected to significantly increase. This redesign is estimated to cost hundreds of millions of dollars. It will create a system that does not reduce costs, just shifts them among different parts of the state.