Dan Patrick Blocks Multi-Million Dollar ERCOT CEO Pay Raise

Texas Lieutenant Governor Dan Patrick intervened to block a six-year contract extension for Pablo Vegas, CEO of the Electric Reliability Council of Texas (ERCOT), after the ERCOT board and the Public Utility Commission of Texas (PUC) approved the deal on September 16, 2026. The proposed contract suggested Vegas could earn up to $6.4 million in 2027. Patrick criticized the amount as shocking and unfair to ratepayers facing rising utility costs, leading the boards to decide not to execute the contract despite not formally rescinding the approval.

Vegas attributed the controversy to a misunderstanding between earned and paid compensation, asserting that his maximum 2027 pay would actually be $4.1 million. He remains under his current agreement through 2027. During the same September 16 meeting, the ERCOT board also unanimously approved a 30% pay increase for its own members, raising average annual pay from $169,375 to $219,375. While consultants from Meridian Compensation Partners LLC argued the raises were necessary to retain talent, Patrick demanded the board reverse these increases as well.

By September 17, Patrick stated he had lost total confidence and trust in ERCOT Board Chair Bill Flores, alleging that Flores provided conflicting accounts of the contract's status and communications with the Lieutenant Governor's office. The Texas Consumer Association joined the criticism, labeling the six- and seven-figure raises irresponsible given that average electricity bills in Texas have increased by 40% since 2020.