Texas will not fix the 16 16 billion power overcharge

The Texas Public Utilities Commission indicated Friday that it has no intention of reversing the 16 16 billion in electric overcharge that is being raised by independent market monitors from the state’s week-long black market.

Commission Chairman Arthur C. Nd Ndriya said the markets were very difficult to replenish and the markets involved a lot of uncertainties.

“It’s impossible to scratch this type of egg,” he said.

Mr Dindriya said there have been so many hedges and private transactions outside the Commission’s view that taking a step designed to help customers could have unintended consequences. “You feel like you’re protecting the consumer and it turns out you’re bankrupting a cooperative or the city.”

The commission met Friday morning to consider the recommendation of its independent market monitor, which concluded that Texas keeps artificial prices at artificially high prices 33 hours an hour, resulting in an additional 16 16 billion in consumer spending.

As a result of the stabilization, millions of homes were left in the dark for days, with massive blackouts, the pay of three members appointed by the Texas government. Greg Abbott ordered the state’s grid operator to increase the wholesale price of electricity to a maximum of 9 9,000 per megawatt. Hours.

Market Monitor said in a report on Thursday that if the grid operator had stopped installing blackouts, it should have reduced prices when it did not end the energy crisis, let alone days later. It has recommended turning it into a અ 16 billion cost.

Earlier this week, former commissioner chairman DN Walker resigned under criticism, including sitting commissioners Mr D’Andrea and Shelley Botkin, who also indicated on Friday that she was not ordering re-ordering.

Some market participants and consumer groups urged the commission to reset and reduce prices from 9,000. Vistra Corpo.

V.S.T. 1.60%

, Who owns one of Texas’ largest power generators and also owns a large electric retailer, said not re-adding would result in “unfair and unreasonable results.”

Texas has been battered by massive financial consequences in the wake of last month’s power crisis, contradicting what the state’s utility commission and power grid operator has done wrong.

A few hours after the blackouts, the Utility Commission abandoned the market-based pricing system and took the unusual step of ordering to keep the wholesale electricity price at ક 9,000 a cap until the grid-order blackouts were over.

The grid operator complied and kept prices at cap prices after closing the blackouts order, but at the time local electric companies were still struggling to turn on the lights and some continued to have massive blackouts.

The four-day extended rise in price to તના 9,000 above normal prices in Texas, averaging a 22-megawatt hour last year, put some market participants in heavy financial trouble.

Vistra said it had lost between $ 900 million and 1. 1.3 billion. Many wind farm operators who need to buy electricity due to hedge agreements are in financial crisis. A large electric cooperative has applied for bankruptcy protection.

The Utility Commission did not vote to reject the Independent Market Monitor’s suggestion, leaving the door open for a change in policy in the coming weeks.

Democrat Sen. Nathan Johns of Dallas said he considered the agency’s decision a mistake. He said he would have supported Klobeck to allay concerns among electricity producers and retailers about regulatory interference in setting market prices.

“It would have sent a strong market signal,” he said.

President Biden approved a major disaster declaration for Texas, then the winter hurricane created a power and utility crisis that left millions without safe drinking water. Photo: J Ra Radel / Getty Images (Originally published February 20, 2021)

Write to Russell Gold at [email protected]

Copyright Pirate 20 2020 Dow Jones & Co., Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8