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No consumer pays $50/kWh in Texas.

• jeffbee 3y ago
  Yet. You can't expect the electricity resellers to absorb wholesale market shocks forever without passing it on to consumers. The ERCOT spot market has hit the ceiling of $5000/MWh every single day all summer long.
  • gruez 3y ago
    Is that the spot price or price for all electricity consumed in the state? Depending on how the market is structured it's very possible that there's different prices paid depending on the type of contract. For instance the utility might be paying one generator a fixed price for base load, and gets the remainder on the spot market. On hot days the spot market might be $5000, but that's not the price the utility pays for all electricity at that moment, because it also has electricity supplied from lower priced contracts.
  • vel0city 3y ago
    It balances out for all those hours in the year where prices go negative and all those hours where it's not $50/kWh. Plus, youre talking spot markets, not day ahead. Most electricity is sold in the day ahead markets, which isn't anywhere near those prices. But hey, continue suggesting people are actually paying $50/kWh without sharing any additional context. Being truly genuine, I see. I did the math based on my usage last month. I pay $0.06/kWh for electricity cost (not including delivery, just energy). Most of my usage is after those peak hours, as my car charges and pool pumps run and we do our laundry and dishwasher and what not over the evening or early morning. Even at that rate my REP probably made money off me, as they would have still been ahead assuming they were properly buying in the day ahead markets. And in the fall when rates often go negative they'll make a lot of my usage getting paid both ways on the transaction. What do you pay for electricity? Oh yeah, and my plan is 100% renewable purchase. What mix is yours?