Texas has been at the mercy of an unprecedented winter storm, which has left many of the state’s residents without heat, power and potable water for several days. Several people, some homeless, have died in the freezing temperatures.
As Texans withstand widespread power outages and freezing temperatures this week, many are asking the same question: How much am I going to be charged for the electricity I do receive?
The complex answer, according to experts in the Texas power industry, depends on whether residential customers signed long-term contracts with their providers or decided to take their chances paying wholesale market prices overseen by the Electric Reliability Council of Texas (ERCOT), the nonprofit charged with managing the state’s electrical grid and its “energy-only” market.
As WFAA reported, electricity supply and demand in Texas has really stabilized now. But when it was grossly out of whack over the past several days, the cost of power in the wholesale market went crazy. It went from about $50 per Megawatt to $9,000. That didn’t affect retail many customers because they were on a fixed-rate plan.
But if you were on a variable or indexed plan, your rate — and therefore, your electric bill — may have skyrocketed. One customer messaged us:
“Mine is over $1,000…not sure how…700 square foot apt I have been keeping at 60 degrees.”
Another couple tweeted at us:…
Continue Reading