Texas power regulator, under pressure to roll back storm prices, huddles with Wall Street
Source: Reuters
COMMODITIES
MARCH 10, 2021 1:30 PM UPDATED 3 HOURS AGO
Exclusive: Texas power regulator, under pressure to roll back storm prices, huddles with Wall Street
By Gary McWilliams
3 MIN READ
HOUSTON (Reuters) - The chairman of the Public Utility Commission of Texas huddled with Bank of America utility analysts on Tuesday as pressure mounted on him to reverse about $16 billion in emergency power pricing that would hurt power plant operators.
The meeting came two days before PUC Chairman Arthur D’Andrea was due to rule on rescinding billions of dollars in charges levied on electricity marketers. If he reverses those charges, it would help retail marketers and hurt traders and power generators that stand to collect the money.
The state’s power grid operator raised power prices sharply during a February freeze to induce more power during a blackout. However, prices were left at about 450 times their usual level long after the emergency passed, moves that benefited traders and generators.
Bank of America has market analysis and power and gas trading arms deeply tied to the Texas crisis. Securities analysts on the call with D’Andrea give investors advice in whether to purchase securities in publicly traded utilities that could lose from any repricing.
D’Andrea was not available for comment. PUC spokesman Andrew Barlow rejected any conflict of interest in the meeting, saying it was routine and did not reveal confidential information. The call was “a rehash of previously openly discussed information,” he said.
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Read more: https://www.reuters.com/article/us-usa-texas-power-regulator-exclusive/exclusive-texas-power-regulator-under-pressure-to-roll-back-storm-prices-huddles-with-wall-street-idUSKBN2B22F1
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