REUTERS: The Texas electricity market faces"insurmountable distress" as more gas and service bills come due, power industry officials said on Thursday at a hearing into financial fallout from the state's February blackout.
"The market is facing a financial crisis and it's a very severe financial crisis," Catherine Webking, executive director of an industry lobby group told state lawmakers at a hearing in Austin on Thursday."You’ll see more and more financial distress that is insurmountable," as bills for natural gas and financial collateral come due in coming weeks, she testified.
On Wednesday, grid operator Electric Reliability Council of Texas disclosed 12 energy companies and two municipal utilities were overdue on US$2.21 billion for power and services during February. ERCOT has little means to cover the charges, said Kenan Ogelman, the grid's vice president for commercial operations. It collects money from suppliers and pays generators, typically in four days. Texas may have to consider providing a financial backstop during future emergencies, he said in response to a question."This event has demonstrated some consideration for a grid instrument," Ogelman said.