The city explained in a statement that it would “explore all legal options to protect the financial assets of the City of Denton and its ratepayers from improper use,” adding that Denton had already received a restraining order against the grid operator.
Texas Goes from $22 to $9000 Per Megawatt-Hour
Last year, retail electricity providers, businesses and consumers, and local utilities only paid an average of $22 per megawatt-hour. However, following Texas’ stormy weather, the state Public Utility Commission adjusted the market prices to reach a maximum of $9000 per megawatt-hour until the emergency is ended. The increase jumped from $1,200 a megawatt-hour that the Public Utility Commission ordered last Monday.
Accordingly, the electricity costs skyrocketed for retail electricity providers and other consumers in Texas. The price increase resulted in massive losses to businesses and consumers alike. Namely, Vistra Corp that sells power to over 2 million homes in Texas said Friday that it had lost $1.3 billion. The company’s shares fell 24% on the same day.