Texas grid operator panel passes proposal to add $500M in power costs
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Top Texas power generators are a step closer to reaping $500M in new revenues after a technical advisory committee of Texas grid operator ERCOT voted Monday to set price floors for power costs when reserves fall below a key threshold, Bloomberg reported.
While the change would only come into play ~8% of the time based on current conditions, it is enough to raise consumers' costs by $500M/year, ~80% which would go toward "dispatchable resources," power generation that can be called up in real time such as natural gas, coal and nuclear.
Under the proposal, price floors would be set at $10-$20/MWh when real-time reserves fall below 7K MW.
ERCOT's board and the Texas Public Utility Commission could vote as early as next week to approve the measure.
Potentially relevant companies include NRG Energy (NYSE:NRG), Vistra (NYSE:VST), CenterPoint Energy (CNP), Exelon (EXC), American Electric Power (AEP) and Sempra (SRE).
The move is part of a larger effort in Texas to improve the electric grid after its disastrous failure in 2021.