ERCOT, the grid operator for most of Texas, is predicting record-breaking peak usage this summer driven by the strong Texas economy. ERCOT also expects the recent retirement of older generating units to result in tight operating reserves.
This year ERCOT is forecasting a summer peak load of almost 73,000 MW which is 1,900 MW more than the record peak set in 2016. Add to that the recent closure of three coal fired generating plants that totalled 4,300 MW and you have a formula for high electricity prices. Because of this and the recent spikes in the real time market, many electric providers are buying hedges for the summer now which is further driving up the price.