| OT Snow is reeking havoc in the SE. How's things in your neck of the woods?

planomateo

Ivory Club
Messages
33,979

Elderfalsedemigod

Not an alter...maybe an altar
Century Club
Messages
2,373

50+yeartidefan

Touchdown Club
Messages
8,806

planomateo

Ivory Club
Messages
33,979
Are these companies so fundamentally broken financially they cannot withstand a single event? I know it was a devastating event but still. Maybe I do not really appreciate how bad it really got there.

They are selling it as they're not going to pass the bills to their members.

$9,000 per megawatt hour during the event vs ~$35 per megawatt hour prior to the event. How does anyone adjust to a spike like that?

http://www.ercot.com/content/wcm/lists/226271/Texas_Legislature_Hearings_2-25-2021.pdf
 

50+yeartidefan

Touchdown Club
Messages
8,806

planomateo

Ivory Club
Messages
33,979
It seems that ERCOT is catching most of the grief on this. Ironically the PUC (public utilities commission) is the one who set the $9 maximum rate.

The PUC commissioner DeAnn Walker and ERCOT CEO Bill Magnesia both resigned today.

Politics.

Railroad Commission is responsible for the gas lines as I understand. Strange huh..
 

It Takes Eleven

Quoth the Raven...
Scholarship Club
Messages
29,129
It seems that ERCOT is catching most of the grief on this. Ironically the PUC (public utilities commission) is the one who set the $9 maximum rate.

The PUC commissioner DeAnn Walker and ERCOT CEO Bill Magnesia both resigned today.

Politics.

Railroad Commission is responsible for the gas lines as I understand. Strange huh..

Railroads are among the original eminent domain hooo-ers.
 

planomateo

Ivory Club
Messages
33,979
Give this a read.


Snippet below:

Brazos Electric Power Cooperative Executive VP Clifton Karnei was a ERCOT board board member until Feb. 25; when the cooperative received a $2.1 billion bill from the manager of Texas’ power grid.

Karnei resigned from the ERCOT board last week — becoming the seventh resignation to hit the board in response to the fallout over power grid failure.

Karnei’s resignation happened the same week bills totaling $2.1 billion owed to ERCOT came due.

On Feb. 25, the day Karnei resigned, Brazos Electric Cooperative sent ERCOT a letter explaining the cooperative would not pay the bill.

The Brazos Electric filing claims the ERCOT wholesale market will see $55 billion in charges from the week-long winter storm timeframe; four years’ worth of charges from a single week.

“Brazos Electric will not foist this catastrophic ‘black swan’ financial event onto its members and their consumers, and commenced this bankruptcy to maintain the stability and integrity of its entire
electric cooperative system,” Karnei wrote in the bankruptcy declaration filed in Houston on March 1.

Brazos Electric Cooperative’s total power costs for all of 2020 totaled $774 million.
 

It Takes Eleven

Quoth the Raven...
Scholarship Club
Messages
29,129
Give this a read.


Snippet below:

The tail risk is never fully considered by most. A very few lay off that risk to others. In this case, they are mitigating post-event by filing. By the time it makes it to the actual energy producer, most likely, they will be paid a handsome but not egregious rate for their power.

That's my guess. I'll give them credit for refusing to pass the cost to consumers, choosing to wreck a co-op that exists for its members.
 

Top