On Wednesday, the Texas Public Utility Commission showed its willingness to address looming electricity shortages by allowing wholesale prices to hit new highs during peak demands for power. All three PUC commissioners agreed that wholesale electricity prices, now capped at $3,000 per megawatt-hour during peak demand, must be raised to encourage investors to build more generation plants.
Also at the Wednesday PUC Open Meeting, the utility commission approved a rule that will encourage utility-sized energy storage for the first time in Texas. The rule allows the new technologies such as compressed air energy storage (“CAES”) to store and resell power at wholesale prices, which is expected to increase the system’s electricity capacity and help make solar and wind generation more effective. Read more about developments at the Texas PUC.