Stock Groups

Texas power demand hits monthly record in heatwave -Breaking

© Reuters. FILE PHOTO – Overhead power lines can be seen in record breaking temperatures at Houston, Texas (U.S.A.), February 17, 2021. REUTERS/Adrees Latti/File photo

(Reuters) – The Texas power grid stated Tuesday it had enough resources to supply demand for this week’s customers who turn on their air conditioners in order to avoid unseasonably warm weather. This comes after Monday’s monthly high usage.

According to the Electric Reliability Council of Texas, which manages the grid in most of Texas, demand has risen to 70.703 megawatts Monday. This surpasses the previous monthly record of 66.7271 MW, set in May 2018.

This is not surprising considering that temperatures in Houston (the largest city in Texas) reached just 88°F (31.1 Celsius on Monday. That’s only a couple degrees above the normal city high of 85°F for this time period of the year according to AccuWeather.

The temperature was higher in other parts of the state. It reached 101 F in San Antonio on Monday. San Antonio averages 86 F this time each year.

Extreme weather reminded Texans about the freezing February 2021, which left millions without electricity and water during a severe storm. ERCOT tried to keep the grid from collapsing after a unusually high amount of generation had been shut off.

ERCOT predicted that demand will reach 70.758MW by May 16 – topping Monday’s peak, but still well below August’s record of 74.820MW.

On a normal day one megawatt could power approximately 1000 homes across the USA, while only around 200 houses in Texas can be powered by it on a hot Texas summer day.

AccuWeather had predicted high temperatures for Houston from May 10-23.

Next-day prices at ERCOT North hub in Dallas fell to $75/megawatt hour on Tuesday, despite high demand. They were $88 Monday, and $164 Friday, respectively, six months ago.

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.