Texas Supreme Court hears arguments about legality of high electricity prices during 2021 blackouts

by Claire Hao, Houston Chronicle | Source: Houston Chronicle | Posted 01/30/2024

The Texas Supreme Court heard oral arguments Tuesday in a case alleging Texas regulators overstepped their authority during the deadly 2021 freeze.

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The Texas Supreme Court heard oral arguments in a case involving the Public Utility Commission of Texas (PUCT) and allegations that it overstepped its authority during the 2021 freeze by allowing wholesale electricity prices to remain at the maximum cap for several days. The PUCT appealed a previous ruling that found its orders to increase the wholesale price of electricity to $9,000 per megawatt-hour during Winter Storm Uri to be "invalid" and an "operation of executive fiat." The decision, if upheld, could impact the billions of dollars power generation companies made selling electricity at the capped rate.

During oral arguments, the PUCT argued that the price cap was necessary to correct market errors caused by outages and ensure the reliability of the electric grid. Power generation companies, including Luminant, Calpine, and Talen Energy, joined the PUCT in petitioning the Texas Supreme Court to overturn the appellate ruling. Luminant, in particular, claimed to have lost at least $1.6 billion during Winter Storm Uri due to high costs for natural gas and the need to buy electricity at or near the price cap.

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Source Link: https://www.houstonchronicle.com/business/energy/article/puct-ercot-winter-storm-electricity-prices-court-18637460.php

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Texas Supreme Court hears arguments about legality of high electricity prices during 2021 blackouts

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