Austin (WBAP/KLIF) – The Texas Public Utility Commission has decided to let stand the 16-billion dollar overcharge imposed on utility companies during the statewide energy crisis last month.
The discrepancy was discovered by an independent market monitor last week. Potomac Economics found that ERCOT kept market prices too high for nearly two days after widespread outages ended — and recommended the charges be reversed.
PUC Chairman Arthur D’Andrea that it’s too difficult to re-price the energy markets and involves too many uncertainties, “It is nearly impossible to unscramble this sort of egg.”
The overcharge has forced some state utilities into bankruptcy or out of business, others passed the costs onto customers. Potomac Economics said in its report revealed last week that reversing the charges could have prevented fallout out for state utilities.
During a hearing at the Texas Capitol Thursday, lobbyist Catherine Webking, who advocates for retail electricity providers, told lawmakers “This is an immediate issue and a very dire issue in terms of finances. Enacting the remedy “is not changing market prices (because) those prices are not market prices.”
Meantime, a class-action lawsuit has been filed against ERCOT that is appealing to any individual or family member who lost electricity and suffered an injury or other damages during the February 2021 winter storm.
(Copyright 2021 WBAP/KLIF 24/7 News. This report contains material from the Austin American Statesman.)
