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- A watchdog for the Texas power grid operator said it was overloaded as millions of people became powerless.
- The Texas Electrical Reliability Council is not regulated by the federal government.
- The report says electricity prices have been set at $ 9,000 per megawatt per hour, the highest possible price.
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Potomac Economics, an independent market monitor for the Texas Utilities Commission, said the state’s electricity grid operator massively overcharged residents as the state was rocked by a deep freeze and power outages. electrical network at the end of February.
The surcharges totaled $ 16 billion, according to the filing. The report recommended that the Electric Reliability Council of Texas (ERCOT) take action to reverse the charges.
In its report, the Monitor determined that as Texas struggled with multiple snowstorms, prices were inflated for 33 hours longer than necessary.
“Therefore, the [independent market monitor] recommends that the Commission order ERCOT to correct the prices in real time from February 18, 2021 at 12:00 a.m. to February 19, 2021 at 9:00 a.m., in order to remove the inappropriate pricing intervention that occurred during this period “, the report said, adding that ERCOT should retroactively revert to normal.
Bloomberg reported that the Texas Utilities Commission, which regulates ERCOT, will discuss the Monitor’s report at a meeting on Friday.
ERCOT, largely privatized and subject to its own regulatory system, allows wholesale electricity prices to be determined based on supply and demand.
The report states that during the February storm, the Public Utility Commission ordered the grid operator to price electricity at $ 9,000 per megawatt per hour, which is the highest price that the operators are licensed to change within the state of Texas.
In the weeks following the freeze and power outages, ERCOT, the Utilities Commission and heads of state were plunged into crisis, as state lawmakers called for new energy leadership and answers.
The Chairman of the Utilities Commission has resigned and yesterday former ERCOT CEO Bill Magness was ousted by the power grid board.
Seven of the fifteen ERCOT board members have resigned since the freeze, and five resigned after it was revealed that they did not reside in Texas.
The blackouts, which largely last from February 10 to 17, as natural gas and electricity operators have been hit by arctic temperatures and poor power grid infrastructure are not expected to withstand winter conditions.
Millions of Texans were left helpless and with water damage, and at least 80 Texans died from the cold temperatures and related causes.
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