March 1, 20214 yr So, like, they weren’t hedged? There is a futures market for electricity in Texas, isn’t there?
March 1, 20214 yr They own 40GW of power generation capacity. They cover a bunch of mostly ruralish counties. I'm not sure how they got to be a net consumer of electricity. Maybe they got gouged by gas prices.
March 2, 20214 yr So, like, they weren’t hedged? There is a futures market for electricity in Texas, isn’t there?Probably not if I had to guess.
March 2, 20214 yr 7 hours ago, TwiceHorn said: They own 40GW of power generation capacity. They cover a bunch of mostly ruralish counties. I'm not sure how they got to be a net consumer of electricity. Maybe they got gouged by gas prices. Uh. I think its 4GW of power generation. Per their website Brazos Electric is a 3,994 megawatt generation and transmission cooperative whose members' service territory extends across 68 counties from the Texas Panhandle to Houston. I'm assuming they had generation trip offline...leading to these invoices from ERCOT. Could be any of these Jack County (1 and 2) - 1240 mw gas fired combined cycle plant Johnson County - 258mw gas 1x1 combined cycled plant RW Miller - 576 mw gas/diesel plant Sandy Creek - 1000mw coal plant (brazos has 25% offtake) They had an RFP for energy in 2020. https://aces-wpengine.netdna-ssl.com/wp-content/uploads/2020/09/Brazos-Electric-Cooperative-2020-RFI-for-ERCOT-Energy-Resources-.pdf According to Fitch....BPEC has been "short" and taking advantage of lower ERCOT pricing in recent years https://www.fitchratings.com/research/us-public-finance/fitch-affirms-brazos-electric-power-cooperative-inc-tx-idr-at-a-outlook-positive-18-06-2020 So its possible BPEC was "short" and had units trip offline...which would be a double whammy. Just speculation on my part.
March 2, 20214 yr So the state or county picks up the business and it’s back to a good old boring public utility again?
March 2, 20214 yr Major flaw of deregulation if providers start to run to bankruptcy when the max prices are hit. Who is left holding the bag when a provider fails to pay? I assume ercot makes up the difference because we would never expect a private business like a power generation company to take on that risk. Which in turn, we all make up the difference so the generation companies can make their profits. Edited March 2, 20214 yr by Nice Guy Eddie
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