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The Texas Heat & Electricity Prices Go Up! ERCOT Notice

Texas expects record-high electricity demand this week, so the Electric Reliability Council of Texas issued an operating condition notice ahead of forecasted triple-digit temperatures across the state.

The spike in demand is likely to raise electricity prices.

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The notice is the first tier of ERCOT’s alerts says it has enough resources available to meet forecast demand. The Texas grid has yet to see mass blackouts this year.

ERCOT is issuing an OCN [Operating Conditions Notice] for the extreme hot weather with forecasted temperatures to be above 103°F in the North Central and South Central weather zones, from Friday, June 10 2022 until Monday, June 13, 2022. The normal high in those areas are 91 F this time of year.

Texas Heat & Electricity Prices Go Up

Back in May, Texas experienced back-to-back weekends of record-breaking heat and corresponding electricity demand. Regulators forecasted in May that the grid will have ample generation to meet the increased level of power usage brought on by this summer’s heat. In May the regulatory body issued its first power consumption notice, asking Texas residents to meter their energy usage and avoid using large machinery such as washing machines during prime windows over the course of a particularly hot weekend. Now in June, Texas broke the record on Monday and Tuesday and will keep rising this week until it tops the all-time high as economic growth boosts usage and hot weather causes homes and businesses to crank up their air conditioners.

  • Monday Demand: 72,386 MW
  • Tuesady Demand 72,785 MW
  • Wednesday Forecast: 75,305 MW
  • Thursday Forecast: 77,166 MW

(previous record for June just last year was 70,257 MW)
(all time high is 74,820 MW set in August 2019)

One megawatt (1 MW) normally powers 1000 homes. On a summer day in Texas is only services 200 homes. ERCOT expects new wind and solar power plants added over the past year would increase resources available this summer to 91,392 MW. Even with tht extra supply, demand is spiking and will drive up electricity prices.