AUSTIN, Texas (AP) - The Texas Public Utility Commission on Tuesday will hear arguments for changes to the wholesale electricity market brought on by escalating risks that include significantly higher caps on prices.
New rules that nearly double the price a generator can charge per megawatt-hour during peak demand periods could mean devastating losses to utilities that must buy power when their equipment fails.
The Austin American-Statesman reported Monday that electricity generators favor the creation of a market in which providers would bid to offer capacity energy instead of relying on higher caps as an incentive for generators to install more power plants. Lawyers for the H-E-B supermarket chain, among others, argue the adoption of a capacity market would immediately raise prices.
Information from: Austin American-Statesman, http://www.statesman.com
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