TCAP Current Issue 58
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Big Price Spike in the ERCOT Market
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Real-time energy prices in ERCOT surged to the $9,000-megawatt-hour cap in August. The result of triple-digit temperatures and high power consumption, the spike created heartburn for some retail electric customers and may stretch the resources of retail electric providers.
Real-time prices more typically remain below $30 and only on two other occasions in grid history have they reached $9,000.
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Potential Heartburn for Retail Customers, Retail Electric Providers
Although the brief wholesale energy spike will only indirectly affect home customers, some of them almost immediately began feeling the sting. You can read one such tale of woe here. Industry observers also predict the spike may harm some retail electric providers.
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Even More on Electricity Prices
Since 2001, Texas has operated a system for retail power in which deregulated providers serve some customers and non-deregulated providers serve others. The Texas Coalition for Affordable Power tracks average prices charged by both sorts of providers and reports its findings each year on its website. You can find one of our recent reports here.
Our pricing reports typically focus on residential prices only. Last month, however, we decided to take a quick look at commercial prices. How have mom and pop businesses fared under the Texas electric deregulation law? Our
findings may surprise you.
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About TCAP
Want to find out more about the Texas Coalition for Affordable Power? Check out our website. You also can learn more about the state's deregulated electricity market by checking out the in-depth reports at TCAPTX.com.
Email TCAP policy analyst R.A. Dyer at rdyer@tcaptx.com for more details.
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If you have any questions about this newsletter or have a news tip, feel free to contact TCAP policy analyst R.A. "Jake" Dyer. He can be reached by email at rdyer@tcaptx.com.
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