Texas monitor says state power-grid operator overcharged $16 billion in electricity bills during power outages

<p><img src="https://static4.businessinsider.com/image/603507a1d920880018591759-2400/GettyImages-1231266038.jpg" border="0" alt="Power lines are seen on February 19, 2021 in Texas City, Texas" data-mce-source="THOMAS SHEA/AFP via Getty Images" data-mce-caption="Power lines in Texas City, Texas"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Potomac Economics, an independent market monitor for Texas' Public Utility Commission said that the state's power-grid operator massively overcharged residents as the state was rocked by a deep freeze and power grid failures in late February.</p><p>The overcharges came in at a total of $16 billion, <a href="https://interchange.puc.texas.gov/Documents/51812_61_1114183.PDF">according to the filing.</a> The report recommended that the Electric Reliability Council of Texas (ERCOT) take measures to reverse the charges.</p><p>In its report, the monitor determined that as Texas was gripped by multiple snowstorms, prices were inflated for 33 hours longer than necessary.&nbsp;</p><p>"Therefore, the [independent market monitor] recommends that the Commission direct ERCOT to correct the real-time prices from 0:00 February 18, 2021, to 09:00 February 19, 2021, to remove the inappropriate pricing intervention that occurred during that time period," the report said, adding that ERCOT should retroactively reset prices to normal.</p><p>Bloomberg <a href="https://www.bloombergquint.com/onweb/texas-watchdog-says-power-grid-operator-made-16-billion-error">reported</a> that the Public Utility Commission of Texas, which regulates ERCOT, would discuss the monitor's report at a meeting on Friday.</p><p>ERCOT, largely privatized and under its own regulation system, allows for wholesale power prices to be determined by supply and demand.&nbsp;</p><p>The report indicated that during the February storm, the Public Utility Commission directed the power-grid operator to set power prices at $9,000 per megawatt per hour, which is the highest possible price operators are permitted to change in the state of Texas.</p><p>In the weeks after the freeze and power failures, ERCOT, the Public Utility Commission, and state leaders have been embroiled in crisis, as state legislators have <a href="https://www.texastribune.org/2021/03/04/ercot-texas-electricity-16-billion/">called for</a> new energy leadership and answers.&nbsp;</p><p>The chairman of the Public Utility Commission resigned, and yesterday, former ERCOT CEO Bill Magness <a href="https://www.businessinsider.com/texas-blackouts-public-utility-commission-chair-resigns-deann-walker-storm-2021-3">was ousted</a> by the power grid's board.</p><p>Seven of fifteen ERCOT board members have resigned since the freeze, with five resigning after <a href="https://www.cnn.com/2021/02/23/us/texas-storm-recovery-tuesday/index.html">it was revealed</a> that they did not reside in Texas.&nbsp;</p><p>The outages, widely lasting from February 10 to February 17, as natural gas and power operators were blitzed by arctic temperatures and shoddy power-grid infrastructure not meant to withstand the winter weather.&nbsp;</p><p>Millions of Texans were left powerless, and with water damage, and <a href="https://apnews.com/article/houston-weather-storms-texas-dallas-cf41d1c32181aaf6dc57e9740cd51cc0">at least 80 Texans died</a> due to cold temperatures and related causes.</p><p><a href="https://www.businessinsider.com/texas-monitor-says-power-grid-overcharged-16-billion-during-storm-2021-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/how-parasite-delivered-one-of-the-best-twists-in-cinema-2020-2">What makes 'Parasite' so shocking is the twist that happens in a 10-minute sequence</a></p>
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