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Texas power bill.
- Thread starter TobyC
- Start date
TobyC
"I shaved a Tribble once..."
"Last Monday, as freezing weather rolled through Texas and the southeastern US, the wholesale price of electricity shot up 10,000%. It went from about $50 per megawatt hour to $9,000 - a system cap, according to data provided by the Electric Reliability Council of Texas, the grid's operator."
Need to change that cap!
Need to change that cap!
I was reading about this over the weekend. It's crazy. Evidently power can be traded much like stocks in it's own "stock market" system. This is absolutely ridiculous. And I love how the CAP is at $9,000. Seriously? So you are saying that if the cap wasn't there...then it's likely the cost would go higher? This is only so that some can make a profit off of the misery of others. Convince me otherwise.
TobyC
"I shaved a Tribble once..."
I. Energy Prices Lower than System-Wide Offer Cap During Load-Shed Event
"ERCOT has informed the Commission that energy prices across the system are clearing at less than $9,000, which is the current system-wide offer cap pursuant to 16 TAC § 25.505(g)(6)(B). At various times today, energy prices across the system have been as low as approximately $1,200. The Commission believes this outcome is inconsistent with the fundamental design of the ERCOT market. Energy prices should reflect scarcity of the supply. If customer load is being shed, scarcity is at its maximum, and the market price for the energy needed to serve that load should also be at its highest."
This outcome would be contrary to the purpose of the rule, which is to protect consumers from substantially high prices in years with substantial generator revenues. It would make little sense to expose consumers to prices that are higher than the usual maximum price after a generator revenue threshold has been achieved. Given the need to ensure appropriate energy prices to both consumers and generators during this system emergency, the Commission finds that, in accordance with 16 TAC §§ 22.5(a) and 25.3(b), a public emergency exists and good cause exists for granting an exception to 16 TAC § 25.505(g)(6)(A). On this basis, and because of the aforementioned concerns with the application of the LCAP, the Commission orders that ERCOT shall suspend any use of the LCAP until after the Commission’s regularly-scheduled next open meeting, and that ERCOT shall continue to use the HCAP as the system-wide offer cap until that time.
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"ERCOT has informed the Commission that energy prices across the system are clearing at less than $9,000, which is the current system-wide offer cap pursuant to 16 TAC § 25.505(g)(6)(B). At various times today, energy prices across the system have been as low as approximately $1,200. The Commission believes this outcome is inconsistent with the fundamental design of the ERCOT market. Energy prices should reflect scarcity of the supply. If customer load is being shed, scarcity is at its maximum, and the market price for the energy needed to serve that load should also be at its highest."
This outcome would be contrary to the purpose of the rule, which is to protect consumers from substantially high prices in years with substantial generator revenues. It would make little sense to expose consumers to prices that are higher than the usual maximum price after a generator revenue threshold has been achieved. Given the need to ensure appropriate energy prices to both consumers and generators during this system emergency, the Commission finds that, in accordance with 16 TAC §§ 22.5(a) and 25.3(b), a public emergency exists and good cause exists for granting an exception to 16 TAC § 25.505(g)(6)(A). On this basis, and because of the aforementioned concerns with the application of the LCAP, the Commission orders that ERCOT shall suspend any use of the LCAP until after the Commission’s regularly-scheduled next open meeting, and that ERCOT shall continue to use the HCAP as the system-wide offer cap until that time.
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global_dev
Shave Enthusiast
so if I understand correctly, the folks with the “big” bills didnt want to hedge the prices, so they’ve been doing well at the wholesale price until they got caught without the insurance of hedges? Is that right?
im curious how quickly folks could have changed their energy distribution plans once they saw the forecast and understood (if at all they were following and could understand) the impending issues.
TobyC
"I shaved a Tribble once..."
Folks just trying to save money, can't fault them really, and this is the first time Texas has had a major problem like this, no one saw this coming. I think that kind of price for getting a little extra power from the grid is ridiculous, there's no way it actually costs that much. Folks will be changing to fixed rate plans I'm sure.
global_dev
Shave Enthusiast
I get it, saving money is typically a good idea.
I’m wondering if people actually will switch to fixed rate if they get bailed out and dont expect this to happen again and there are constraints put in place
i have a certain phone plan that lets me cut off call routes if it goes above a certain set rate for a particular place automatically. I am guessing that would have been a better option than not at all for the megawatt wholesale price.
I’m looking forward to the recycled EV batteries being hooked up on walls in garages to better priced and more available for emergency use.
