The Electric Reliability Council of Texas asked consumers on Sunday to conserve “as much as possible” until Tuesday as it coped with frigid conditions that sapped electricity supplies.
As Zerohedge pointed out well : “Ancillary Services, specifically Responsive Reserves which ercot issued an operational notice stating they needed more offers, does not have the same $9,000 cap level. It cleared a comical eleventy gabillion; actually a cheap $11,950…..PER MEGAWATT.
Do the simple math on that.
If you are a retailer, obligated to, lets just say, 25MW, and did not hedge (meaning you left it to get filled by ERCOT at market clearing price), you just incurred a $7.1M cost on an around the clock basis for a single day.”