Texas PUC Votes To Double Wholesale Electricity Price Cap

Law360, Houston (October 25, 2012, 8:04 PM EDT) -- Texas regulators on Thursday voted to double the state’s price cap for wholesale electricity sales, in a bid to encourage electrical generation development to meet increasing electricity demand that experts say could lead to future shortages.

The Public Utility Commission of Texas voted 3-0 to raise the maximum price electricity wholesalers can charge from $4,500 to $9,000 per megawatt hour, on hopes the move will provide generators with the financial incentive to build capacity needed to offset shortages that could occur as early as 2015. The...
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