Texas Regulators Raise Wholesale Electricity Price Cap

Law360, New York (June 28, 2012, 5:01 PM EDT) -- Texas power regulators on Thursday approved a 50 percent increase in the state's price cap for wholesale electricity sales, hoping it will spur electrical generation development to combat increasing electricity demand that observers say could lead to future shortages.

The Public Utility Commission of Texas voted 2-0 to raise the maximum price electricity wholesalers can charge from $3,000 per megawatt hour to $4,500 per megawatt hour, effective Aug. 1, PUC spokesman Terry Hadley told Law360. The commission's move comes after Texas' grid operator said in May...
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