Texas Reliability Entity, Inc. (Texas RE), was established to develop, monitor, and enforce reliability standards in the ERCOT region, pursuant to Texas RE's Delegation Agreement with the North American Electric Reliability Corporation (NERC). NERC is the the electric reliability organization (ERO) that has been approved by the Federal Energy Regulatory Commission (FERC). NERC has delegated authority to Texas RE to be the Regional Entity for the ERCOT region to:
- Propose new or modified NERC standards and facilitate the development of regional reliability standards and regional variances;
- Monitor and enforce compliance with NERC standards, pursuant to the Compliance Monitoring and Enforcement Program and the NERC rules of procedure;
- Perform other delegated actions pursuant to Section 215(e)(4) of the Federal Power Act, including:
- Situation awareness and infrastructure security;
- Reliability assessment and performance analysis; and
- Training, education, and operator certification.
Texas RE is reviewed or audited by both NERC and FERC for its performance, its compliance with NERC rules and programs, and its independence from registered entities.
Texas RE's budget is submitted to the Texas RE Board for approval and then to NERC for approval, pursuant to the Delegation Agreement. Texas RE is funded by NERC for its activities under the Delegation Agreement.