DATELINE: 09 December 2004
PUC investigates electricity price surges
Associated Press DALLAS - Surges in the price of wholesale electricity have spurred the Texas Public Utility Commission to launch a formal investigation, focusing on bids from TXU Corp. that have been 10 times more than normal levels.
Prices in the spot market have regularly shot up during nonpeak periods recently, to more than $400 per megawatt hour. Wholesale prices generally average $40 to $50 per megawatt hour.
The price surges came despite relatively normal weather and electricity demand, leading state officials to question whether companies have been withholding supplies or improperly influencing the market.
At a commission meeting last week, PUC Chairman Paul Hudson expressed "grave concern" over the spikes.
"The plants that we're bidding in are high-cost plants," TXU spokesman Chris Schein said. "If our bid is struck, that is the lowest price that was bid into that market at that time segment.
Price spikes in previous years have led to accusations about market manipulation and settlements by some companies.
Though electricity providers have expressed concern about the recent activity, the latest investigation "was just part of the normal observation of the prices by PUC staff," agency spokesman Terry Hadley said.
|
