Texas energy grid operator overcharged firms $16B throughout winter freeze

The Electrical Reliability Council of Texas made a large error that resulted in $16 billion in overcharges final month when hundreds of thousands of residents have been left with out energy after a historic winter storm, in accordance with a watchdog that oversees the ability grid operator.

ERCOT set the utmost value of electrical energy at $9,000 per megawatt-hour, which prompted the huge overcharges from 12 a.m. Feb. 18 to 9 a.m. Feb. 19., Bloomberg reported, citing Texas’ impartial market monitor Potomac Economics.

The agency despatched a letter to regulators recommending the pricing be corrected and that the $16 billion overcharge ought to be reversed.

The error additionally led a number of electrical firms equivalent to EDF Renewable Vitality and Simply Vitality to ask the Public Utility Fee to reset the pricing, and others have requested regulators to waive their funds till the problem was resolved.

“If we don’t act to stabilize issues, a worst-case situation is that folks will go underneath,” Carrie Bivens, a vice chairman at Potomac Economics, advised Bloomberg. “It creates a cascading impact.”

Greater than 4.5 million clients have been left with out energy throughout the storm, which claimed the lives of dozens of Texans amid document freezing temperatures.

4 ERCOT board members resigned after coming underneath hearth for not dwelling within the state and for his or her dealing with of the ability outages.