ERCOT’s energy-only market traces back to the 1990s, beginning with wholesale competition furthered by Senate Bill 7 in 1999 which unbundled much of the investor-owned utility sector ahead of retail choice in 2002. The design reflected a market philosophy associated with policymakers such as Pat Wood at the Public Utility Commission of Texas: competitive energy prices, scarcity pricing, bilateral contracting, and open transmission access could create efficient investment signals without a separate centralized capacity market.