Commentary: ERCOT, Peaker Net Margin, Electric Prices and Why You Should Care
Here’s a bit of interesting news for Texas energy consumers. It’s a bit wonky, so stick with us.
On April 14th, an independent expert announced that wholesale electric prices in Texas have dropped this year, as compared to what they were in 2014.
Lower wholesale prices mean generators make less money, but also probably mean lower retail prices. So the announcement — which was made during a board meeting of ERCOT, the organization that oversees the state’s primary power grid — should come as good news for ratepayers.
Here’s where it gets wonky. The announcement also prompted an important discussion at ERCOT about the assumptions it uses when monitoring the state’s power market. Changing those assumptions could impact how much we all pay for electricity.