Texas officials initiate interest rate hike inquiry for Winter Storm Energy Act

Texas officials announced on Saturday that they were investigating the cause of widespread power outages in the state. After the winter storm in the state, energy bills soared.

Why it matters: In the storm last week, thousands of Texans lost their power and water. The WFAA reported that since then, wholesale electricity prices have risen from approximately US$50 per MWh to US$9,000-noting that so far this month, some Texans are facing up to US$17,000.

what̵

7;s happening: Governor Greg Abbott (R) issued a statement after an emergency meeting with Republican and Democratic legislators in the state, saying, “For Texans who have suffered for days in the severe cold without electricity or heat, The skyrocketing energy costs are unacceptable.”

• The state’s public utility regulator, the Texas Public Utilities Commission (PUCT), announced on Saturday that it has begun an investigation, “the combination of investigative factors and severe winter weather has disrupted access to Texas. Electricity supply for millions of homes.”

“The committee also unanimously adopted a series of steps aimed at protecting retail power customers to feel the financial impact of the ERCOT grid incident.”

— PUCT statement

note: Abbott called the Texas Electric Reliability Commission (ERCOT) “opaque and opaque in its operation.”

What to see: Abbott said in a statement that he is working with lawmakers and the state’s lieutenant governor to “developing solutions to ensure that Texans do not get into trouble due to unreasonable increases in energy bills.”

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