Riverside, California 2021-02-16 10:25:33 –
Austin — Texas Public Utility Commission to “change pricing model” to state grid operators at a nightly emergency meeting late Monday after a surge in electricity demand during a winter storm when supply plummeted Allowed.
When and how orders affect customers who have had millions of people unable to access electricity in many of Texas’s record sub-zero temperatures and heavy snow depends on the nature of their contracts with utilities. A PUC spokesman said it was heavily dependent.
In technical terms, the three-member committee overseeing Texas’ competitive electricity market cited several factors that directly affect power generation costs, such as “very high natural gas prices.”
“The Commission believes this result is inconsistent with the basic design of the ERCOT market. Energy prices should reflect a shortage of supply,” the order said. “If the customer’s load is lightened, the rarity should be maximized and the market price of the energy needed to handle that load should also be the highest.”
Since Sunday night, Texas energy grids have been plagued by gas, coal, wind and nuclear fueled generators being taken offline in near-zero temperatures and widespread electricity demand.
As a result, millions of Texas suffered for hours without having to leave the lights on, warm their homes and businesses, or cook their meals.
Police said a woman and a girl in Houston died at home on suspicion of carbon monoxide poisoning in the absence of electricity from a car running in the attached garage. Law enforcement officials also said sub-zero temperatures were likely due to the deaths of two men found along roads in the Houston area.
Power outage It is expected to continue at least until Wednesday.
A public utility commission spokesman, Andrew Barlow, said a system malfunction has reduced the market price from $ 9,000 per megawatt to $ 1,200. The Commission’s actions effectively allow prices to rise above their artificially low levels, he added.
Customers in the highly competitive electricity market who chose a fixed-price plan will remain the same for the duration of their current contract, he said. Companies with flexible pricing plans that can save money when electricity is high and demand is low are likely to be hit, Barlow said.
This is a developing story and contains material from the Associated Press of Texas. Please check for updates.
John C. Moritz is responsible for Texas Government and Politics at the USA Today Network in Austin. Contact him at email@example.com and follow him on Twitter @JohnnieMo..
Public Utility Commission gives grid operator go-ahead to adjust prices Source link Public Utility Commission gives grid operator go-ahead to adjust prices