Some Texans are getting sky-high energy bills


After unusual icy weather left millions of Texans without power, some are facing another crisis: sky-high electricity bills.

The surge in pricing is hitting people who have chosen to pay wholesale prices for their power, which is typically cheaper than paying fixed rates during good weather but can spike when there's high demand for electricity. Many of those who have reported receiving large bills are customers of electricity provider Griddy, which only operates in Texas.


"This whole thing has been a nightmare," she said.

Here's more on the soaring electricity bills:


Wholesale electricity prices fluctuate based on demand. Because natural gas pipelines and wind turbines froze in Texas, there was less power available but high demand for electricity, causing wholesale prices to shoot up, said Joshua Rhodes, an energy research associate at the University of Texas.

Wholesale prices are typically as low as a couple of cents per kilowatt-hour but spiked to $9 per kilowatt-hour after the storm. Fixed-rate customers pay a set amount that doesn't rise as much. Typically, they pay around 12 cents per kilowatt-hour. But Rhodes said fixed-rate customers could see their price rise by a few cents later this year as companies hit by the icy conditions look to recoup their costs - but their bills won't be in the thousands.

People are able to pay wholesale prices in Texas because it's one of the only states that lets people pick which company it buys power from, Rhodes said.




Griddy said it has 29,000 members. It's unclear how many other Texans also pay wholesale prices from other companies.

"We won't get the full picture on the financial devastation for maybe 30 to 90 days," said Ed Hirs, an energy fellow at the University of Houston.


That's unclear. Texas Gov. Greg Abbott said Sunday that he is working with members of the legislature to address skyrocketing energy bills and "find ways that the state can help reduce this burden." But he didn't give specifics on what that may be. For the time being, the state has stopped companies from cutting off power for not paying.
