Electricity Prices to Increase on Hottest Days
By Dave Fehling, StateImpact Texas
Starting tomorrow, prices for electricity in Texas are going up when a rule passed by the Public Utility Commission goes into effect. It allows for higher wholesale prices when the grid is strained, like on those hot summer days when air conditioners across the state are working overtime.
The commission says the change shouldn’t affect most people’s power bills. But as KUHF’s Dave Fehling reports for StateImpact Texas, there’s plenty of controversy over whether those higher prices will end up costing consumers more.
Electricity retailers like TXU, Reliant and several dozen smaller companies buy wholesale power and sell it to residential customers. Many of those residential customers have fixed-price contracts in which they’ve agreed to pay a guaranteed price for a year, maybe two. So no matter how much the retailer has to pay for wholesale electricity, the price the residential customer pays should stay the same.
But now, that guarantee may not be a guarantee at all.
Click the player above to listen to the full story. Read it here on the StateImpact website.