Texas Tribune by Erin Douglas and Mitchell Ferman May 25, 2021
Several billions of dollars in state-approved financing will be necessary to stabilize the state’s distressed energy market after the winter storm. Texas approves more in finance bailouts for its utilities than any other state.
The February winter storm was one of the most devastating disasters in the state’s history, killing at least 100 people. It was also one of the most expensive because of spikes in wholesale power prices and natural gas prices. Electricity regulators set power prices at the maximum rate — $9,000 per megawatt-hour — for several days in hopes that market dynamics would encourage more electricity to be supplied.
Because the freeze knocked out many of the state’s power generators, electricity companies had to buy what little power was available at that exorbitant rate (the average price for power in 2020 was $22 per megawatt-hour). Natural gas fuel prices also spiked more than 700% during the storm.
More:
https://www.texastribune.org/2021/05/25/electricity-market-financing-winter-storm/