🥇 First rule of investing? Know when to save! Up to 55% off Investing Pro before BLACK FRIDAYCLAIM SALE

Texas power demand hits record, more highs seen in heat wave

Published 07/12/2023, 08:16 AM
Updated 07/12/2023, 08:25 PM
© Reuters. FILE PHOTO: Utility poles lead to downtown Dallas during a heat advisory due to scorching weather in Dallas, Texas, U.S. July 12, 2022. REUTERS/Shelby Tauber/File Photo

(Reuters) -Demand for power in Texas hit a record high on Wednesday as homes and business cranked up air conditioners during a lingering heatwave, according to data from the state's power grid operator.

ERCOT said power use reached a preliminary 81,351 megawatts (MW) at 6 p.m. CST (2300 GMT), topping the grid's previous record of 80,828 MW set on June 27.

Peak demand is expected to set another record at 83,454 MW on Thursday.

Meteorologists at AccuWeather forecast high temperatures in Houston, the biggest city in Texas, would hit 100 degrees Fahrenheit (37.8 Celsius) almost every day from July 12-19. That compares with a normal high of 94 F for this time of year.

The Electric Reliability Council of Texas (ERCOT), which operates the grid for more than 26 million customers representing about 90% of the state's power load, has said it has enough resources available to meet the soaring demand.

Texas residents have worried about extreme weather since a deadly storm in February 2021 left millions without power, water and heat for days as ERCOT scrambled to prevent a grid collapse after the closure of an unusually large amount of generation.

One megawatt can power around 1,000 U.S. homes on a typical day, but only about 200 homes on a hot summer day in Texas.

Since mid-June, the grid has projected demand would hit record highs on at least 13 days, but usage has only set an all-time high twice this year.

© Reuters. FILE PHOTO: Utility poles lead to downtown Dallas during a heat advisory due to scorching weather in Dallas, Texas, U.S. July 12, 2022. REUTERS/Shelby Tauber/File Photo

With the heat building, day-ahead power prices settled at between $100 and $330 per megawatt hour for eight hours for Thursday afternoon. Real-time prices at HB Houston node were at$143 as of 6:30 p.m. CST, after touching $1,372 at 4:30 p.m. CST on Wednesday, according to the ERCOT website.

Next-day or spot prices at the ERCOT North Hub, which includes Dallas, rose more than 200% to hit $123 per megawatt hour for Wednesday. That compares with an average of $33 so far this year, $78 in 2022 and a five-year (2018-2022) average of $66.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.