Texas is the only state in the US that runs a stand-alone grid, designed to keep its energy system independent& isolated from other markets. During critical weather events like the storm, Texas cannot connect to other grids, which are connected & draw from each other when needed

"Unlike other U.S. electric grid operators, ERCOT does not have a capacity market — payments made to operators to ensure power needs in coming years — to handle events like the freeze. Instead, regulators use scarcity pricing to ensure reliability, but that can cause real-time

prices to soar due to shortages.

Capacity market auctions determine, three years in advance, what price generators will receive to make their output available to grid operators. Generators get paid whether they produce power or not."