Appeals court says state agency set electricity prices too high during 2021 winter storm

by Erin Douglas & Emily Foxhall, The Texas Tribune | Source: The Texas Tribune | Posted 03/17/2023

Related meeting(s):

04/27/22 - HEARINGS - Luminant Energy Company LLC, Appellant v. Public Utility Commission of Texas, Appellee

The actions by the Texas PUC led to billions of dollars of overcharges, the Austin-based court found. It’s not yet clear if the ruling will affect consumers.

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A Texas appellate court has ruled that the Public Utility Commission overstepped its authority during the deadly February 2021 winter storm by setting the price of electricity at the maximum of $9,000 per megawatt-hour. The commission had raised the price to signal the urgent need for more power generation during the storm, which led to providers being overcharged by $16 billion and facing financial distress.

The court's decision, following an appeal by electric utility company Luminant, may have significant implications for the electricity market in Texas, particularly in unwinding transactions that occurred at the high price cap. However, the outcome of this ruling is still uncertain as the case may be further appealed. The repercussions of this decision could potentially impact ongoing legal battles among energy companies following the aftermath of Winter Storm Uri.

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Source Link: https://www.texastribune.org/2023/03/17/puc-appeals-court-uri-prices/

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Appeals court says state agency set electricity prices too high during 2021 winter storm

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