Wholesale electricity prices in Texas hit a 12-month high in September during a period of high electricity demand, according to an analysis by the U.S. Department of Energy.
The department’s Energy Information Administration released a monthly analysis on Tuesday that examined wholesale electricity prices for six markets run by a regional transmission organizations, like the Electric Reliability Council of Texas, which oversees 90 percent of the state’s electric grid. The other markets were in New York, Louisiana, California, Florida and Arizona.
On Sept. 20, ERCOT’s wholesale prices hit $75 per megawatt hour when electricity demand was high, at 65,713 megawatts. But prices rapidly fell again to $25 per megawatt hour on Sept. 30 when demand sagged, to 45,671 megawatts. One megawatt can power 200 homes at peak demand, or 500 homes during mild weather conditions.
The charges on customers’ electricity bills don’t necessarily reflect the wholesale electricity prices. Bills include charges from retail electricity providers as the cost of transmission.