Companies such as Griddy - which gives consumers access to wholesale electricity prices - have outlined ways for its users to switch power providers in an effort to shield them from volatile price swings. Some of the heightened cost could end up on Texas consumers' utility bills. With utilities scrambling to keep the lights on, power prices are surging across Texas as contractual obligations force companies to buy at any price.ĬIBC's Babin noted that Texas' unregulated market is exacerbating the price swings as energy producers are forced to buy megawatts in the open market. He added that the impacts are also felt in the fall and spring, when Texas has an abundance of power that it can't export. "Texas has chosen to operate its power grid as an island," noted Rice University's Cohan, which means the state can't import power from other states when it's most needed. Companies are trying to bring the cheapest form of energy to the market, which can come at the expense of building out more reliable infrastructure systems. It's a competitive pricing market, meaning it trades on supply and demand. The majority of the state's power is controlled by the Electric Reliability Council of Texas, which is known as ERCOT. Texas has a stand-alone power grid that's deregulated. They're not incentivized to invest in the infrastructure to make those improvements." "On these tail events, they're really ill equipped. "They have the infrastructure in place that meets the needs 99.9% of the time," said Rebecca Babin, senior equity trader at CIBC Private Wealth. The state is used to extreme heat and drought, but its infrastructure simply is not equipped to operate in extreme cold. Of course, power equipment operates in places that are much colder than Texas, so one step that can be taken would be to winterize equipment. Personal Loans for 670 Credit Score or Lower ![]() Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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