Supply Shortfall and Business Electricity

Supply Shortfall and Business Electricity

Photo by Matthew Rutledge
Photo by Matthew Rutledge

“The North American Electric Reliability Corp. has jumped into the debate about whether Texas has enough electricity capacity to meet rising demand,” the Fort Worth Star-Telegram reports. While both the PUC (Public Utility Commission) and ERCOT (the Electric Reliability Council of Texas) have been actively working to promote growth, raising the wholesale power price caps in an effort to sway generators to build in Texas, this suggests that everyone is not convinced Texas will generate enough power to meet its residential and business electricity demands.

The North American Electric Reliability Corporation (or NERC) is a national reliability group. Whereas ERCOT oversees Texas, NERC keeps an eye on multiple markets nationwide.

Colin Meehan, representing the EDF (Environmental Defense Fund) in Texas, said in a recent blog post, “No one could accuse ERCOT or the PUC of sitting idly by or pretending this risk isn’t real. However, they have yet to send a strong enough signal to the market to spur investors in demand response or any other resources to develop new projects.” Indeed, it would seem NERC agrees with this assessment. According to that same article from the Star-Telegram, in a January 7 letter addressed to Trip Dogget, the ERCOT CEO, Gerry Cauley, NERC President, stated that NERC’s analysts have determined “higher reliability risks” for Texas and calls for ERCOT to reply by April 30 with a plan for addressing the possible shortage.

The key questions for Texas business owners are: How will a possible shortfall affect commercial electricity rates? What is the best way to compare electricity rates and contracts in the current market climate? Which electricity providers are best prepared for a shortage if we encounter one? And, ultimately, how will any of this impact your business electricity expenses?

At the time of this writing, the simple truth is that we don’t know if there will be a shortage or not, so we don’t yet know to what degree anyone will be affected. However, there are things you can do to protect your organization now, whatever happens in the commercial electricity market in the future.

The best step you can take is to enlist the support and help of a business electricity broker, like the top-notch team here at Live Energy. The Live Energy experts have more than 10 years experience helping business owners navigate energy market volatility. We know how to create an energy strategy that will protect your business, putting you in the best possible place whatever the future brings.

No, we don’t have a crystal ball. No one on our staff is psychic. We haven’t got a time machine. But we do have a proven track record of helping business of all shapes and sizes lower their commercial electricity costs, and we’d like the opportunity to work with you.

To find out more about how partnering with Live Energy can help you prepare for the future, whatever it holds, call us today at 888-341-9155. We are electricity rates experts, and we’re here to help you.


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