Summer in Texas seems to have set in a little early this year with near record temperatures being seen across much of the State. Electricity consumers and ERCOT officials alike, are watching closely to see how summer power prices will react to hot temperatures and a smaller than normal reserve margin.
Yesterday, June 5th, saw some significantly high real time prices. Load zone prices for the day averaged $169/MWh in the Houston, South and North zones and $201/MWh in the West zone. Hourly price spikes were seen between 1pm – 5pm with prices averaging near $725/MWh during this period. The highest hourly prices were seen in the 3pm hour as prices across all zones exceeded $2,000/MWh, with one 15-minute interval reaching over $3,000/MWh.
Above normal temperatures are forecasted to continue for the next week across most of the state. We will continue to provide periodic updates on real time prices and other events that may impact summer power prices.