Texas Interconnected System (TIS) to support the war effort. During the war, the grid was interconnected to other states and excess power generation was sent to industries on the Gulf Coast, providing a more reliable supply of electricity for production of metal and other material needed for the war. Recognizing the reliability advantages of remaining interconnected, TIS members continued to operate and develop the interconnected grid. TIS members adopted official operating guides for their interconnected power system and established two monitoring centers within the control centers of two utilities, one in North Texas and one in South Texas. In 1970, ERCOT was formed to comply with NERC requirements. However, the Texas grid is not subject to regulation under the Federal Power Act, being an intrastate grid for the purposes of that law. On May 4, 1976, Central Southwest Holdings attempted to force the issue, with an event that was later called the "Midnight Connection", where it connected the grid to Oklahoma for a few hours. This caused lawsuits about whether federal regulation then applied, however the judgement was that this was not sufficient. The deregulation of the Texas electricity market occurred in two phases: the wholesale generation market in 1995 and the rest of the sector in 1999. The 1999 deregulation was aimed at counteracting a shortage of generation capacity in the state. Since deregulation, retail providers and power generators were unregulated, although regulations on transmitters continued to control the placement of electrical lines. The legislation abolished the former system, in which power was both generated and consumed locally. Instead, under the deregulated regime, retailers could contract with providers across the state, creating a complex market. The 1999 deregulation also dropped limits on rate increases. Prior to deregulation, residential electricity rates were significantly below the national average; after deregulation, residential electricity rates increased, rising 64% between 1999 and 2007. 2011 winter storm power losses In early February 2011, a major winter storm impacted Texas; freezing and extreme cold at natural gas pipelines and wells, as well as generating units (such as coal-fired power plants and wind turbines) caused power outages across Texas affecting 3.2 million customers. ERCOT and its regulator, the Public Utility Commission of Texas, failed to adopt a mandatory standard for preparing electricity infrastructure for such occurrences (winterization), despite recommendations from the Federal Energy Regulatory Commission and North American Electric Reliability Corporation (NERC). Texas's failure to prepare left