Texas Governor, Regulators Pledge to Quash Burdens Wrought by High Natural Gas, Electricity Prices
https://www.naturalgasintel.com/texas-governor-regulators-pledge-to-quash-burdens-wrought-by-high-natural-gas-electricity-prices/February 22, 2021
The Railroad Commission of Texas (RRC) plans to explore “all options†to reduce any financial burdens to consumers brought about because of high natural gas and electricity costs related to last week’s unprecedented winter storms.
Regulators also were in “daily contact†with producers, pipeline operators and electric regulators to ensure natural gas supplies continue to be delivered.
“Utilities have been purchasing gas to deliver to customers in a commodities market in which prices dramatically increased due to the extremely high demand brought on by the prolonged storm,†the three-member RRC said. Commission Chair Christi Craddick said she was “committed to utilizing all of the tools available to this agency to assist in the coming weeks. The Railroad Commission will be exploring all options in order to reduce the financial burden on Texans as we tackle the challenges that lie ahead together.â€
As the leading electricity source in the state’s power grid, overseen by the Electric Reliability Council of Texas, or ERCOT, natural gas was at the center of the winter storm chaos last week, and prices skyrocketed. ERCOT ended emergency conditions on Friday. Post mortems about what happened and why are expected to continue, both at the federal and state level.
The RRC last week sent a notice to natural gas utilities under its jurisdiction authorizing them to set up regulatory accounts that could be used in rate proceedings, which would be reviewed as needed....
