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Co-Founder and Lead Software Engineer Reliable Energy Analytics LLC

Inventor of patent 11,374,961: METHODS FOR VERIFICATION OF SOFTWARE OBJECT AUTHENTICITY AND INTEGRITY and the Software Assurance Guardian™ (SAG ™) Point Man™ (SAG-PM™) software and SAGScore™...

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  • Feb 26, 2021
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The power outage in Texas was bad, but the "hang over" effect is really going to hurt.

RETAIL DEFAULTS AHEAD

A quarter of about 100 retail providers in Texas are at risk of default on ERCOT’s multimillion-dollar service charges. Some may sell customers to larger firms to cover costs, stifling retail competition, said Mark Foster, a lawyer and former special counsel to the state’s Public Utility Commission.

“They call it the blood week,” said Foster, adding that one of his clients, electricity marketer Young Energy LLC, faced a $19 million bill for services that cost $37,000 the prior month.

“There will be a significant decrease in competition for the consumer,” he added.

Texas weekly power costs jumped to $50 billion from $5 billion because of higher electric and gas prices, even though more than 4 million people lost power, said Senator Nathan Johnson, who asked where the money went.

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Richard Brooks's picture
Richard Brooks on Feb 26, 2021

Maybe it's time to revisit this concept: http://www.tresamigasllc.com/

Richard Brooks's picture
Richard Brooks on Mar 1, 2021

[UPDATE 3/1]

The largest power cooperative in Texas, Brazos Electric Power Cooperative Inc. filed for Chapter 11 bankruptcy protection on March 1, saying it received a $1.8 billion bill from the Electric Reliability Council of Texas (ERCOT) following last month’s winter storm that crippled the state’s electric power grid.

The "hang over" effects of Scarcity Pricing! This could have been easily avoided with a properly functioning capacity market that pays generators enough money to cover their preparedness costs so that they can commit to being available, even during difficult weather conditions. 

Matt Chester's picture
Matt Chester on Mar 1, 2021

Yikes, hangover indeed. The cleanup  here is going to be a mess for quite some time for Texans. Hopefully stakeholders use the moment to push for the necessary changes to avoid these events ever again. 

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