# ERCOT chief’s pay is set to jump

> ERCOT’s CEO is getting a six-year extension as Texas faces rising power bills, data-center demand, and grid pressure.
- Title: ERCOT chief’s pay is set to jump · The Texas Tribune
- Summary: ERCOT’s CEO is getting a six-year extension as Texas faces rising power bills, data-center demand, and grid pressure. Pablo Vegas’ 2027 pay package will top…
- Keywords: texas, energy, ercot, electric bills, news, local, chief, pay, set, jump, The Texas Tribune
- Source: The Texas Tribune — https://feeds.texastribune.org/link/16799/17463038/texas-ercot-energy-grid-ceo-salary-prices
- Author: Paul Cobler
- Published: 2026-09-15T23:57:10+00:00
- Read time: 1 min
- Topics: texas, energy, ercot, electric bills, news, local
## A record pay year
ERCOT CEO Pablo Vegas is set to make about $6.5 million in 2027 under a new six-year contract extension approved Tuesday.

> one of the highest paid executives of an independent system electric grid operator
## Pay nearly doubles
Vegas made $3.6 million in 2024. His 2027 compensation is more than 80% higher, and ERCOT did not give a reason for the increase.
## Grid stress is rising
The contract arrives as ERCOT manages a wave of data centers seeking grid connections, plus fights over congestion in West Texas and Houston.
## Customers feel it
Texas residential electric rates have climbed about 40% since 2020, from 11.50 cents per kWh to 16.11 cents per kWh in 2026.

> Statewide, electric rates have risen about 40% on average since 2020
## ERCOT’s money source
ERCOT is a nonprofit funded mostly by an administration fee paid by retail electric providers and utilities, costs that are usually passed to customers.
## Incentives drive the package
Vegas’ base salary will be about $1.16 million. Short- and long-term incentives can add about $3.3 million each year.
## One last payout
His 2027 pay includes a final $1.4 million make-whole payment from his 2022 deal, meant to replace bonuses left behind at his prior employer.

> foregone bonuses from Vegas’ previous employer
## Key takeaway

Pablo Vegas’ 2027 pay package will top $6 million because of incentives and a final make-whole payment, far above recent grid-operator CEO pay.