An independent market monitor said the Texas power-grid operator made a critical mistake that resulted in $16 billion in electricity overcharges last month, and recommended that the charges be reversed.
The monitor concluded that Texas kept wholesale prices high for 33 hours longer than warranted as the state dealt with a major winter storm that led to power shortages and mass blackouts and should correct this mistake by retroactively repricing its wholesale power market for that period.
A Public Utility Commission of Texas spokesman said the issue was slated for discussion at a scheduled meeting on Friday.
A reversal of the charges would be a boon to many participants in the market—from retailers to electric cooperatives, wind farms to multistate generators—that suffered significant financial harm when they needed to buy power at the peak price of $9,000 per megawatt hour.
An expanded version of this report appears on WSJ.com.
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