Does ERCOT have a price cap?

ERCOT’s energy prices are capped by two thresholds, known as the low and high system-wide offer caps. The lower figure is set at $2,000 per MWh or 50 times the price of natural gas, whichever is higher, while the higher cap is the figure of $9,000 per MWh.

What is ERCOT scarcity pricing?

Scarcity pricing is an economic term that refers to the price escalation that occurs when supply becomes tight in a commodity market. As demand edges close to supply limits, prices rise, reflecting the growing scarcity.

Is Griddy going out of business?

Texas electricity company Griddy declares bankruptcy as winter storm fallout continues. Griddy Energy, the Texas electricity provider accused of charging customers thousands of dollars during Winter Storm Uri, said Monday it has filed for bankruptcy.

What was the ERCOT price cap in Texas?

The Public Utility Commission of Texas convened virtually the evening of Feb. 15 and suspended the “circuit-breaker” pricing mechanism that would change the systemwide cap from $9,000/MWh to the greater of $2,000/MWh or 50 times the natural gas price index, when the peaker net margin threshold of $315,000 is reached.

What is the ERCOT price cap for summer 2021?

“As it is, our forecast for summer 2021 has been bearish as compared to the market, due to our modeled reserve margin expectations,” Ahuja said in a March 3 email. “Further lowering of the price cap (from 9000 to 2000/MWh), lowers our expectation further for the summer – by [about] $5/MWh for July 2021 and by $10-15/MWh for August 2021.”

How many customers does ERCOT serve in Texas?

Market Information. The Electric Reliability Council of Texas (ERCOT) market serves about 24 million Texas customers. This section contains information on market transactions, particularly electricity prices, across the ERCOT control area.

When does ERCOT have to do a price correction?

Price corrections are performed by ERCOT without the ERCOT Board’s approval if done before the market prices are final. After the market prices are final, if ERCOT determines that prices are in need of correction, it shall notify Market Participants and describe the need for such correction.