State allows ERCOT to ‘modify pricing’ as electricity demands increase

National

High power need across the entire state of Texas could lead to power outages if supply cannot meet demand. (Source: MGN Online)

Harlingen, Texas (KVEO)—During an emergency meeting Monday night, the Texas Public Utility Commission allowed the Electric Reliability Council of Texas (ERCOT) to modify pricing models after the demand for electricity increased.

UPDATES: Power Outages continue across the Rio Grande Valley, possibly into Wednesday

ERCOT declared its highest state of emergency on Tuesday due to the demand for electricity. In the order, the PUC listed “exceptionally high natural gas prices” as one of the factors that prompted the action, which affects the cost of electric generation.

“The Commission believes this outcome is inconsistent with the fundamental design of the ERCOT market,” the order states. “Energy prices should reflect the scarcity of the supply. If customer load is being shed, scarcity is at its maximum, and the market price for the energy needed to serve that load should also be at its highest.”

LIVE: ERCOT answers questions amid millions of ongoing power outages across Texas

As of Tuesday morning, over four million Texans are without power after planned rolling blackouts turned into prolonged outages and are still not back online.

Since then, customers have wondered why some areas have maintained power, while others have been in the dark and cold for days.

Amid ongoing widespread power outages during historic winter weather, ERCOT is facing criticism as millions of demand answers.

Bill Magness, the president, and CEO of ERCOT — which manages the flow of electric power in the state — spoke to KXAN Tuesday morning and answered some of those questions.

Magness explained that ERCOT’s primary function is to keep that balance, to ensure large collapses don’t happen.

Tuesday morning, ERCOT, , released a statement saying they’re optimistic outages would improve as the day went on.

Power outages are expected to continue at least into Wednesday.

To read the complete order, click here.

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