Texas power grid agency under fire

AUSTIN, Texas, Sep 30, 2004 United Press International

The agency that runs the Texas power grid is coming under increased fire from state legislators who are upset with the operation and want more oversight.

State Sen. Kim Brimer, R-Fort Worth, suggested during a legislative hearing Wednesday the state should consider taking over the quasi-public organization called the Electric Reliability Council of Texas, the Fort Worth Star-Telegram reported.

The $133-million-a-year agency manages the flow of electricity across 37,000 miles of transmission lines and oversees wholesale transactions in the state's $20 billion electric-utility industry. The Texas Public Utility Commission has limited oversight.

The agency, called ERCOT, has been under the microscope for months because of allegations of financial wrongdoing at its headquarters. An investigation has led to the firings or resignations of several top officials.

State legislators criticized the agency for poor financial controls, arrogance, and a lack of responsiveness. The lawmakers were particularly outraged by charges that the agency cut checks to a contractor that included a dead man on its payroll.

ERCOT Chairman Michael Greene admitted there are problems, but he said the organization is working to make corrections.

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Copyright 2004 by United Press International.