Tuesday, July 26, 2022

The Future of Texas Energy Is More Expensive

So far (knock on a turbine) this week, the state’s power supply has kept pace with the demand, despite the prospect of more temps well beyond the century mark.

 

During the worst of the conservation requests this month, generators could sell energy at the cap of $5,000 per megawatt for about five hours. In normal conditions, retailers pay about $50 for a megawatt.

 

Matt Goodman explains how this demand will impact the average energy consumer's wallet in the not-to-distant future, talking to several people with a deep understanding of how the grid and wholesale energy prices work, including former Ambit CEO Jere Thompson and former Stream CEO Rob Snyder.

 

The long and the short of it is this: Your bills are high this summer because they’re always high in the summer in Texas. But some are already seeing an additional increase, and even more will start seeing them over the next year.

 

“Your next power plan will likely start with a 2,” Snyder says, referring to the cost per kilowatt hour on electricity plans. Current plans in Dallas are around 14 cents per kilowatt hour. “It’s all because we don’t have enough power to go around.”

 

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