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It's not weird at all. Texas disconnected from the East and the West via AC ties (still has DC ties that connect to the Eastern and Western Interconnects) to av
by 7thaccount 6y ago
It's not weird at all. Texas disconnected from the East and the West via AC ties (still has DC ties that connect to the Eastern and Western Interconnects) to avoid FERC's federal oversight, so they only answer to the Texas PUC.
Electricity is cheaper there due to the prevalence of wind in comparison to much of the country, but there are also really low prices in the SPP region (includes part of Texas, Oklahoma, Kansas, Nebraska, and parts of several other states) due to wind.
- avernon 6y agoIt is also important to remember that ERCOT does not have a capacity market like every other FERC regulated ISO. The added cost in places like PJM and CAISO is noticeable. Though having capacity markets does not seem to prevent blackouts.
- jabl 6y agoIn practice, capacity markets seem to be mostly handouts to incumbents with a lot of fossil capacity. ERCOT has an ORDC, further pushing up prices during a crunch. OTOH the rest of the time consumers enjoy quite low prices.
- 7thaccount 6y agoYep $9000 prices upon occasion.
- 7thaccount 6y agoThat is not entirely true. SPP does not have a capacity market as capacity procurement (outside of resource adequacy) seems to be on the States.