Days after the Texas Uri winter storm, the state’s electricity market was hit by severe economic consequences. The Electric Reliability Council of Texas (ERCOT) failed to pay $2.12 in required payments. About 17% of the amount owed for last week.
Ercot collects money to pay operators of power plants. The Austin-based Corporation said that $800 million of its revenue account will be used to pay a little amount of what they are owed. However, Ercot would still need $1.32 billion to pay back. A spokeswoman for the company said that there might be future payments owed by retailers.
Amid the historic frigid conditions in Texas, many state citizens couldn’t afford to pay the bills. Consequently, the shortfall in payments triggered a big problem over how to fill the payment gaps. Last week, some Texans received a staggering $17,000 three months electricity bill. In return, many Texans filed lawsuit against the Texas Energy Committee.
For instance, electricity costs reached a sky-high price in Denton, a North Texas city. The city filed a lawsuit against the Electric Reliability Council of Texas following the exorbitant price bills. It argued in the lawsuit filing that the payments were “an illegal and unconstitutional raid by [Ercot] on the credit of cities that operate electric utilities.”