Texas ’s grid operator needs to come up with $1.3 billion to pay power plants for energy they supplied during last week’s historic blackouts, raising the prospect it may require a state bailout. The grid operator, known as Ercot, managed to cover part of that debt by transferring $800 million in revenues from another market but remains $1.3 billion short, according to a notice. The $1.3 billion shortfall that Ercot now faces is unprecedented, said Adam Sinn, power trader and owner of Aspire Commodities LLC. In addition to managing the grid, Ercot is a middleman for transactions between power plant owners and retail energy providers that buy their electricity. “We are concerned that because of potential bankruptcy of retail providers we will not be paid," said Terry Naulty, assistant general manager of Denton Municipal Electric.

Source: Mint February 27, 2021 12:11 UTC