Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Texas power use hits monthly record again with many more to come

Published 06/01/2022, 09:41 AM
Updated 06/01/2022, 09:45 AM
© Reuters. FILE PHOTO: Overhead power lines are seen during record-breaking temperatures in Houston, Texas, U.S., February 17, 2021. REUTERS/Adrees Latif//File Photo

(Reuters) - Power demand in Texas reached the highest level ever recorded in the month of May on Tuesday and will likely break the record for June on Wednesday as economic growth boosts overall usage and hot weather causes homes and businesses to crank up their air conditioners.

The Electric Reliability Council of Texas (ERCOT), which operates the grid for most of the state, said it had enough resources available to meet forecast demand.

That was not the case on May 13 when ERCOT was forced to urge customers to conserve energy after several power plants shut unexpectedly, causing real-time prices to briefly soar to over $4,000 per megawatt hour (MWh).

Extreme weather reminds Texans of the 2021 February freeze that left millions without power, water and heat for days during a deadly storm as ERCOT scrambled to prevent a grid collapse after an unusually large amount of generation was shut.

AccuWeather forecast high temperatures in Houston would remain in the low to mid 90s Fahrenheit (33.9 Celsius) from May 31-June 25. That compares with a normal high of 90 F (32.2 C).

ERCOT said demand peaked at a preliminary 71,688 megawatts (MW) on Tuesday, which would top the prior record for May of 71,160 MW on May 19.

ERCOT forecast that demand would reach 70,398 MW on Wednesday, which would top the June record of 70,257 MW set in 2021, and would keep breaking that monthly high on June 5-7.

The 74,757 MW peak expected on June 7 would fall just shy of the grid's all-time high of 74,820 MW in August 2019.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

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.

ERCOT expects to have about 91,392 MW of resources available to meet a projected peak of 77,317 MW this summer.

Latest comments

"Extreme weather reminds Texans of the 2021 February freeze that left millions without power, water and heat for days during a deadly storm as ERCOT scrambled to prevent a grid collapse"  -- Texas wants to have its own grid system, now the lack of connectivity doesn't seem such a wise decision now does it?
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.