Texas is preparing one of the most meaningful upgrades to its power market in years. It will not involve new generation or major construction, yet it will change how electricity is priced, dispatched, and supported in real time. For end users, this means ERCOT will manage generation and reliability differently, and those improvements will influence both costs and overall grid performance. The reform is called RTC+B, and its impact will reach across the market.
What RTC+B Is and Why It Matters
RTC+B, which stands for Real-Time Co-Optimization plus Batteries, is a redesign of how ERCOT selects resources every five minutes. Today, energy and reserves are determined through largely separate processes. Under RTC+B, ERCOT will evaluate both at the same time, using a single real-time optimization to choose the most efficient combination of resources.
Storage will also be treated as a fully flexible asset rather than being split into separate functions. This unified treatment gives ERCOT a clearer view of what each resource can provide and allows the grid to respond more precisely to changing conditions.
The goal is straightforward. Improve efficiency, avoid unnecessary commitments, make better use of storage, and create a more stable and predictable cost structure for the market.
Why RTC+B Matters in Light of Recent Reliability Changes
ECRS, introduced in June 2023, provided ERCOT with a new fast responding reserve designed to protect the grid during sudden disturbances. It strengthened reliability, but its rollout was a bumpy one that drove ancillary service costs sharply higher and contributed to elevated spot prices before eventually settling down. Those early challenges showed how difficult it can be for ERCOT to introduce new services within a framework where energy and reserves are not fully aligned.
This context helps clarify the value of RTC+B. While ECRS added important reliability capability, RTC+B is the broader structural improvement that will make the system supporting services like ECRS more efficient and less prone to volatility. In simple terms, ECRS reinforced reliability, and RTC+B improves the operating environment that makes that reinforcement more cost effective and should avoid the cost spikes seen during the ECRS rollout.
How RTC+B Improves the Current System
Before RTC+B, ERCOT often had to rely on conservative commitments, higher reserve levels, and more frequent out of market instructions, especially during periods of renewable variability. Batteries were not always dispatched where they offered the greatest benefit because they were modeled in fragmented ways.
RTC+B changes this. By bringing energy and reserves into one real-time process and fully integrating storage, ERCOT can rely more on flexible resources and less on costly adjustments. Over time, this should reduce volatility, lower uplift, moderate reserve premiums, and improve the balance between reliability and cost.
How RTC+B Is Expected to Influence ERCOT Power Costs
The effects of RTC+B reach beyond ECRS. Real-time co-optimization is expected to reduce several cost drivers that ultimately affect customers. These include unnecessary reserve procurement, inefficient dispatch decisions, emergency actions, and peak-hour price spikes. Better use of batteries should also help smooth volatility and provide more consistent support during tight conditions.
Taken together, these changes point to a more stable and predictable cost environment and a more balanced market structure that can better manage system stress.
Timeline and Market Transition
RTC+B is scheduled to begin operating in early December 2025. Testing, market trials, telemetry updates, and participant preparation will continue through 2025, with additional refinements likely in 2026 as ERCOT and market participants adapt to the new design. Price patterns, ancillary charges, and real time behavior will shift gradually rather than all at once.
What End Users Should Watch For
With RTC+B changing how ERCOT manages energy and reserves, end users may see shifts in cost behavior. Key areas to follow include:
ECRS strengthened ERCOT’s reliability posture, but it also highlighted the limits of a market where energy and reserves are managed separately. RTC+B is the next step, providing ERCOT with a more efficient real-time operating framework that should improve reliability and help stabilize costs. Together, these reforms point toward a grid that responds more quickly, operates more efficiently, and provides a more predictable experience for end users. Understanding how RTC+B reshapes the system will help customers navigate the evolving Texas power market with confidence.
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