Energy Insider Blog

While the 2013 summer months were relatively mild by Texas standards, the first week of September produced one surprise. On 9/3/2013, the Electric Reliability Council of Texas (ERCOT), reported a 15 minute interval Real Time price spike, which neared the current $5,000/MWh price cap.  The market clearing price at 4:30pm (or 1630) was $4,900/MWH or $4.90/kWh when temperatures and power usage were high.  While the $4,900/MW price only lasted one 15 minute interval, the simple average price across all load zones for hour ending 5:00pm was $2,333/MWh, or $2.333/kWh.

On August 21, Governor Rick Perry appointed Brandy Marty to the third seat on the Texas Public Utility Commission that was vacated for six months ago. Ms. Marty, who is an
attorney, has held several positions on Governor Perry’s staff, including chief of staff, deputy chief of staff, and director of Budget, Planning and Policy, among others.

During the hot summer months in Texas, participants in the energy markets, including the independent system operator known as the Electric Reliability Council of Texas (ERCOT), turn their attention to making sure that there is sufficient generation available to meet power demand.   While ERCOT is unlikely to have significant reliability challenges during the balance of 2013’s summer, there are concerns about whether this will hold true in the future.  In order to address these concerns, some market participants, such as NRG, have argued that Texas should consider implementation of a capacity market, and preferably one similar to the capacity market in the Mid-Atlantic region of the country.