Outages, lower winds threaten power supply
Unexpected generation outages and reduced wind levels sent wholesale electricity prices in Houston soaring for the second day this week to $9,000 per megawatt hour — the highest price allowed in Texas — as the state moved dangerously close to rolling blackouts.
The Electric Reliability Council of Texas issued an appeal to the public Thursday afternoon to reduce consumption for the second day this week as electricity reserves fell below 2,300 megawatts and power prices in Houston were $9,000 per megawatt hour for nearly two hours. The problem was more dire than earlier in the week, when prices also reached $9,000 per megawatt hour and stayed there for more than an hour.
Houston had some good things going for it heading into Thursday. Electricity demand wasn’t nearly as strong as it was earlier in the week when usage set records, and the temperature, while hot at 97 degrees Fahrenheit, was more moderate than it’s been earlier this week. But Texas didn’t get as much wind as usual on Thursday, especially wind that comes off the Gulf Coast in the afternoons, which has had a moderating influence on prices during these hot days.
With supplies so tight, the lower-than-expected levels of wind on Thursday had an outsized effect on prices, said Trent Crow, founder of the website Real Simple Energy, which helps consumers choose low-priced electricity plans.
Texas also grappled with about 5,200 megawatts of unexpected outages, said Dan Woodfin, senior director of system operations for ERCOT. ERCOT would not say which generators were offline but said it reflects units that have run at capacity all week, struggling to keep up with the unrelenting demand for power as temperatures hit triple digits.
Residential and business customers were asked Thursday as they were on Tuesday to reduce their electricity usage by bumping air conditioning thermostats up at least two degrees and waiting until after sunset to run appliances such as dishwashers, clothes dryers and pool pumps.
Customers that agreed in advance to conserve power in exchange for financial incentives were also asked to conserve power on Thursday afternoon, according to ERCOT.
Before this week, the last time ERCOT asked for conservation measures was five years ago.
The chairman of the Public Utility Commission, DeAnn Walker, said she is confident ERCOT has the tools to manage the supply and demand on the electric grid.