Overhead power lines are observed during record temperatures in Houston, Texas, on February 17, 2021.
Addresses Latif | Reuters
Texas power companies did not pay $ 345 million more for electricity and other services incurred during last month’s cold, the state grid operator said Monday.
The state’s deregulated electricity market was engulfed last month as 48% of generating plants were disconnected, feeding up to $ 9,000 per megawatt hour (mwh) of spot tariffs and $ 25,000 per mwh. These charges led to the bankruptcy of a supplier on Monday.
In total, electricity prices in the state’s wholesale market rose by $ 47 billion over the next five days, when the cold boosted demand and failed plant generation, according to Carrie Bivens, vice president of Potomac Economics, which controls the Texas electricity market.
Its figure does not include additional commissions or non-payment of payments, which are significant and are distributed to all companies that use network services according to ERCOT standards, he said.
“It’s a lot of zeros,” Bivens said about the additional fees.
In total, electricity suppliers lost $ 2.466 billion in power and service charges, said Texas Electric Reliability Council (ERCOT) network operator. He applied $ 800 million in collateral and other accounts to reduce the accumulated deficit to $ 1.666 billion.
ERCOT did not disclose which companies did not pay the bills, but said it will start naming companies and the amounts they will not have paid in the future.
The state-supervised operator acts as a clearinghouse, which collects cash from vendors that buy energy and sends it to companies that supply electrons to the grid.
Texas could reduce about $ 2 billion in the burden facing municipal utilities, vendors and generators by reducing some rates, Bivens said. The governor could also apply a portion of the state emergency fund to cover some charges.
On Monday, electricity supplier Brazos Electric Power Cooperative Inc., the state’s largest and largest wholesale company, filed for bankruptcy alleging $ 1.8 billion in debt due to ERCOT. The presentation highlighted the financial stress experienced by energy vendors and utilities due to price turbulence.
A governor’s spokeswoman, Greg Abbott, declined to comment on Monday’s filing of bankruptcy or on proposals for the state’s Public Services Commission to reverse rates that skyrocketed during the shutdown.
Abbott is monitoring the situation “as ERCOT and its financial advisers work to ensure that the capacity to supply electricity is not disrupted,” said spokeswoman Renae Eze.