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The back story of the high bills rests with Biden’s Department of Energy. The Texas public utilities board asked the DOE for a waiver to run energy plants at maximum capacity to provide as much power to the grid as they could. Running at maximum capacity was going to cause the energy plants to violate EPA standards. The DOE said yes but you will have to chat GE $1,500 per Kilo watt hour. Our government looking out for you. You can go toDOE web site and look up Regulation 201-21-1to verify this. This is Joe Biden’s DOE at work!
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Posted from reuters.com
Joe Biden
Energy
Winter
Posted 4 y ago
Responses: 6
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LTC David Brown - The DoE gave the approval that was requested:
"Given the emergency nature of the expected load stress, the responsibility of
ERCOT to ensure maximum reliability on its system, and the ability of ERCOT to
identify and dispatch generation necessary to meet the additional load, I have determined
that additional dispatch of the Specified Resources is necessary to best meet the
emergency and serve the public interest for purposes of FPA section 202(c). Because the
additional generation may result in a conflict with environmental standards and
requirements, I am authorizing only the necessary additional generation, with reporting
requirements as described below."
ERCOT was allowed to generate more, and it wasn't at $1,500 per KWh (probably just a typo on your part, $1,500/KWh would be crazy!!! :) ). It was $1,500 per MWh but only on the amount exceeding normal capacity. Not that $1.50/KWh is great, but that should only have been on the amount exceeding normal generator capacity, so the majority of electricity generated wouldn't be subject to this. Even then, this doesn't explain prices that spiked to more that $9,000 MWh, six times more than the minimum specified by the DoE for excess capacity.
https://www.energy.gov/sites/prod/files/2021/02/f82/DOE%20202%28c%29%20Emergency%20Order%20-%20ERCOT%2002.14.2021.pdf
What happened was the supply was disrupted, and even with excess capacity the remaining generation sources couldn't keep up. It was the free market that shot it up to $9,000/MWh and those buyers who were buying wholesale had no insulation, or way to tell it happened, from the wild swing in the market price.
"Given the emergency nature of the expected load stress, the responsibility of
ERCOT to ensure maximum reliability on its system, and the ability of ERCOT to
identify and dispatch generation necessary to meet the additional load, I have determined
that additional dispatch of the Specified Resources is necessary to best meet the
emergency and serve the public interest for purposes of FPA section 202(c). Because the
additional generation may result in a conflict with environmental standards and
requirements, I am authorizing only the necessary additional generation, with reporting
requirements as described below."
ERCOT was allowed to generate more, and it wasn't at $1,500 per KWh (probably just a typo on your part, $1,500/KWh would be crazy!!! :) ). It was $1,500 per MWh but only on the amount exceeding normal capacity. Not that $1.50/KWh is great, but that should only have been on the amount exceeding normal generator capacity, so the majority of electricity generated wouldn't be subject to this. Even then, this doesn't explain prices that spiked to more that $9,000 MWh, six times more than the minimum specified by the DoE for excess capacity.
https://www.energy.gov/sites/prod/files/2021/02/f82/DOE%20202%28c%29%20Emergency%20Order%20-%20ERCOT%2002.14.2021.pdf
What happened was the supply was disrupted, and even with excess capacity the remaining generation sources couldn't keep up. It was the free market that shot it up to $9,000/MWh and those buyers who were buying wholesale had no insulation, or way to tell it happened, from the wild swing in the market price.
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