Higher electricity prices coming, experts say
Electricity professionals attending a Dallas conference today were warned that higher electricity prices are likely in the next couple of years. The predictions were based partly on an expectation of somewhat higher natural gas prices which drive Texas power rates and fears of an increasingly tight supply.
"Just tell them to lock in prices" for one or two years, consultant Brandon Schwertner told his audience of electricity retailers and brokers at the Texas Electricity Professionals Association annual conference here.
Other speakers also warned of higher prices, citing the state's narrowing reserve margin of power supply over anticipated demand.
"We certainly had a very tight summer," said Trip Doggett, who heads the Electricity Reliability Council of Texas, which manages the state's largest power grid.
He said ERCOT is studying ways to encourage more large power users to agree to contracts that allow their power to be interrupted at periods of short supply, as well as options for increasing generating capacity.
-- Jim Fuquay