Paul Foster, who chaired ERCOT’s first Board of Directors under rules established in the aftermath of 2021’s disastrous winter storm, announced June 18 that he is stepping down from the position.
Vice Chair Bill Flores will replace Foster on an interim basis, effective June 20.
Foster said he had been thinking about leaving when his term expired this year. However, he said a recent discussion with Texas Gov. Greg Abbott (R), who plays a role in selecting ERCOT’s board members, hastened his decision.
“It became clear to me it’d be much more beneficial to the board and to ERCOT for this transition to happen sooner rather than later,” Foster told the board. “ERCOT has a tremendous amount of work to do in the last half of 2024 leading into a legislative session. … The board has a lot of work to do, shaping and supporting these efforts. Having a new board chair and a new board member in place as soon as possible and well in advance of the legislative session is what would be best for ERCOT.”
The Texas Legislature meets biennially. Its 90th session begins next January, with legislators expected to probe ERCOT’s market changes and performance.
Foster was appointed as chair in October 2021 as one of the revamped board’s first two independent directors. The previous board’s members, six of whom did not live in Texas, resigned under pressure after Winter Storm Uri brought the grid within minutes of a total collapse. (See Two New ERCOT Directors Named, Replacing Current Board.)
Legislation passed after the storm now requires board members to be Texans and independent of the ERCOT market, and have executive-level experience in several disciplines. A three-person board-selection committee appointed by the governor and the state’s other two political leaders is responsible for picking board members.
Foster is president of Franklin Mountain Investment and founder of Western Refining. An El Paso philanthropist, he has been renovating a third downtown building in his hometown.
“When I took this job, I had only a very high-level understanding of the grid and the market,” Foster said. “What I’ve come to learn in my tenure as chair is that this is the most dynamic, innovative, adaptive and forward-looking electric grid and competitive market in the world. Texas and ERCOT are at the forefront in the global energy transfer transformation that is currently taking place … and frankly, I think we’re handling it better than just about anybody else.”
Foster heaped praise on ERCOT’s staff and the Public Utility Commission, which oversees the grid operator.
“As I leave this post, I truly believe that ERCOT is headed in the right direction with the right people in leadership and poised to lead the world through the energy transformation that we’re in the middle of,” he said.
