ERCOT’s Board of Directors on Wednesday night fired CEO Bill Magness during an emergency teleconference.
Magness drew political heat following the system’s near collapse last month that led to long-term power outages and misery for millions of Texans. (See Texas Lawmakers Dig into Power Outages.)
The board voted 6-1 to invoke the termination notice in Magness’ contract. He will continue in his role for 60 days, working with state leaders and regulators on potential reforms to ERCOT, the grid operator said.
The board also directed ERCOT to engage with a search firm “as soon as reasonably possible” to find a new CEO. A transition plan will be discussed during future board meetings.
Nick Fehrenbach, manager of regulatory affairs and utility franchising for the city of Dallas and representing the commercial consumer segment, voted against the motion.
Magness, who was not present, and Lori Cobos, CEO of the Office of Public Utility Counsel, both abstained from the vote.
“I would have preferred to have more time to evaluate this important matter … to evaluate my concerns,” Cobos said.
ERCOT General Counsel Chad Seely conducted the board meeting in the absence of a chair and vice chair, who were among the four independent directors who resigned Feb. 23. (See ERCOT Chair, 4 Directors to Resign.)
Magness joined ERCOT in 2010 after 14 previous years in the electric industry and served as its general counsel. He was appointed CEO in January 2016 and made more than $876,000 in salary and other compensation in 2019.
ERCOT’s board, ideally composed of 16 members, is now down to 10, including Magness. Two of the seven members who have resigned are currently being replaced by acting directors; the independent retail electric market segment’s director and alternate director are both vacant.
Arthur D’Andrea, who was appointed as chairman of the Public Utility Commission on Wednesday, sits on the board as a non-voting member. His predecessor, DeAnn Walker, stepped down Monday. (See PUCT’s Walker Steps Down from Commission.)
