On Thursday afternoon, spot prices for electricity jumped 6,000 percent from $75 the day before, topping out at an eye-watering $4,750. Not only was that the highest they had been in more than a month, but it also nearly hit the $5,000 cap.
Why did Texas’ power prices surge 6,000 percent this week?
Answer: Heat waves.
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Electricity is having a real rough go of things in Texas this summer. The state has been rocked by scorching heat waves that keep setting, and then breaking, new records. This has correlated to record-setting demand for electricity, reflected in recent prices.
On Thursday afternoon, spot prices for electricity jumped 6,000 percent from $75 the day before, topping out at an eye-watering $4,750. Not only was that the highest they had been in more than a month, but it also nearly hit the $5,000 cap.
An excessive heat warning was issued for north Texas on Thursday and will last through Sunday night. Temperatures are expected to be roughly between 105 and 113 degrees during that time.
On Thursday afternoon, spot prices for electricity jumped 6,000 percent from $75 the day before, topping out at an eye-watering $4,750. Not only was that the highest they had been in more than a month, but it also nearly hit the $5,000 cap.
