By Bob Smith, Sage President & CIO
According to a recent letter written to the Texas Public Utility Commission (PUC) by Potomac Economics, the Electric Reliability Council of Texas (ERCOT) made a $16 billion error in pricing during the week of Winter Storm Uri. This reportedly occurred because the PUC directed the grid operator to set wholesale power prices at $9,000 per megawatt hour for two days during the storm the maximum market price allowed. Retail power providers then bought power from the wholesale market to deliver to consumers, because they were contractually obligated to do so. Because ERCOT failed to bring prices back down on time, those companies had to buy power in the market at extremely inflated prices.
Bill to be filed in Texas Senate that could undo billions in ERCOT overcharges statesman.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from statesman.com Daily Mail and Mail on Sunday newspapers.
Griddy Energy Files for Chapter 11 Protection prnewswire.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from prnewswire.com Daily Mail and Mail on Sunday newspapers.
In an unusual move, Republican Lt. Gov. Dan Patrick joined a senate committee hearing Thursday evening for nearly a half hour to question the chairperson of the Texas utility regulator who was appointed by GOP Gov. Greg Abbott.
The demands of lawmakers are growing louder when it comes to addressing what some call a multi-billion-dollar billing error. The dispute involves energy prices charged during the winter storm.