By Ann de Rouffignac
HOUSTON, Aug. 7, 2001 — Electricity prices in the real time market in Texas fell Tuesday, retreating from the high prices and volatility experienced Monday and for much of last week.
For the hour ended at 1 p.m. Tuesday, prices plunged to $28/Mw-hr in the energy balancing market, down from $500/Mw-hr at the same time Monday. The Electricity Reliability Council of Texas Inc. forecast system load for the hour ending 1p.m. Tuesday to be 48,418 Mw, compared to 49,721 Mw at the same time Monday.
Officials at the Public Utility Commission of Texas Monday said they wanted an explanation of the $500/Mw-hr price, in addition to other incidents of volatility throughout the day. Tuesday, many of those problems were no longer apparent in the market.
In the morning, prices dipped into the $18 range and crept up during the day with peak demand to about $41/Mw-hr for the hour ending 2 p.m.
The ancillary services market, which also experienced high volatility when the market first opened last week, was trading at about $2/Mw-hr for nonspinning reserves, and $5-$15/Mw-hr for spinning reserves. When the market first opened, prices in the ancillary services market hit $1,000/Mw-hr price cap after a large player missed the bid deadline (OGJ Online, July 31).