Saturday, May 31, 2008

Sharp Power-Price Rise Hits Texas

From the Wall Street Journal:

Officials Fear Surge
Could Hurt Market;
Another California?

Wholesale power prices in Texas have surged to new heights, confounding market officials and worrying regulators who see early signs that the situation could destabilize the state's deregulated electricity markets.

The spikes in wholesale power prices -- ominous and so far unexplained -- could take a big toll on both power providers and electricity customers if they persist. The state's utility commission held an emergency meeting Thursday, "which shows the level of concern," said commission spokesman Terry Hadley....

...The situation will eventually cost consumers "tens of millions of dollars," though it may take weeks to show up in utility bills, according to Dan Jones, the state's independent market monitor....MORE