Texas Cuts $9,000 Power Price Cap after February Freeze

“After the extreme weather events of February 2021, the price cap of $9,000 per MWh has proven to be a liability on market participants,” the Public Utility Commission of Texas said in its proposal.

Reuters

The Public Utility Commission (PUC) of Texas adopted a proposal to cut the wholesale electricity price cap from $9,000 per megawatt hour (MWh) to $5,000 to help avoid price spikes like those seen during last winter’s February freeze.

The ruling on Dec. 2 was the latest in a series of measures designed to prevent a repeat of the energy emergency caused by February’s Winter Storm Uri, which killed more than 100 people and left around 4.5 million homes and businesses in Texas without power and heat—in many cases for days.

“After the extreme weather events of February 2021, the price cap of $9,000 per MWh has proven to be a liability on market participants,” the PUC said in its commission-sponsored proposal.

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