Texas has a unique electricity market structure known as the Electric Reliability Council of Texas (ERCOT), which operates separately from the rest of the United States. In February 2021, Texas experienced a severe winter storm that caused widespread power outages and disrupted the state’s electricity grid. The event led to a surge in electricity demand and prices, and many residents and businesses experienced high energy bills as a result.
In the wake of the winter storm, the Public Utility Commission of Texas (PUCT) implemented measures to stabilize electricity prices and protect consumers from unexpected spikes in their energy bills. The PUCT also launched an investigation into the events leading up to the power outages, and it is expected to release a report on its findings in the near future.
It is worth noting that energy prices in Texas can be volatile due to the state’s reliance on natural gas for electricity generation and the potential for extreme weather events to disrupt the electricity grid. The DallasNews.com says that “the cost of electricity in Texas has soared in the last year, largely because natural gas prices have doubled since August 2021. Natural gas power plants account for just over half the capacity on the Texas grid, so the fuel tends to set electricity rates for consumers and businesses in the state.” As a result, it is important for Texas residents and businesses to be aware of their energy usage and consider ways to reduce their energy consumption (from the grid), such as through energy efficiency measures and the use of renewable energy sources, like solar panels.