Texas Governor, State Senate Call for Reversal of $16 Billion Power Overcharges
Gov. Greg Abbott asked the state legislature to consider as an emergency item correcting the overcharges, while the state’s senate urged the Texas utility commission to take action
Mr. Abbott directed state lawmakers to consider as an emergency item whether to correct all overcharges identified by an independent market monitor. The Texas Senate meanwhile sent a letter to the Public Utility Commission of Texas, urging it to correct the error.
The moves heighten the pressure on the utility commission, which said last week that it wasn’t inclined to reverse the potential overcharges and reprice electricity sold at sky-high prices during a severe winter storm that swept the state.
Amid the freeze, the three-member commission, appointed by Mr. Abbott, ordered the state’s grid operator to raise wholesale power prices to the peak price of $9,000 per megawatt hour. The independent market monitor, who reports to the utility commission, said in a report last week that Texas kept wholesale prices artificially high for more than 30 hours longer than necessary, creating at least $16 billion in overcharges.
The Electric Reliability Council of Texas, which operates the state’s power grid, and the utility commission didn’t immediately respond to requests for comment.
The utility commission currently has only one sitting member, Arthur C. D’Andrea. Former commissioner Shelly Botkin resigned Monday. Former chairwoman DeAnn Walker stepped down earlier this month after state lawmakers called for her ouster.
A number of lawmakers have expressed support for attempting to claw back the $16 billion. Texas Lt. Gov. Dan Patrick on Monday called on Ercot to reverse the charges.
On Tuesday night, 28 Texas senators, including Republicans and Democrats, signed a letter to the utility commission urging it to correct the charges.
“These corrections are squarely within your authority, whether by your own action or an order to ERCOT,” the letter read.
Sen. John Whitmire, a Democrat from Houston, said he considered the commission’s decision last week to be a mistake, and that it could bring in experts to help unwind the overcharges.
“The PUC needs to get to the bottom of it,” he said.