Weekly Price Recap: 12/30-1/4
Welcome to Griddy's first weekly recap! We always get feedback asking what affects the wholesale price, why a price spike happens and what it means when prices go negative. So we will use this time to explain a little bit more about the wholesale market and how prices fluctuate on a weekly basis. So without further ado...Last week, our members averaged 8.2 ¢/kWh while the average Texan paid almost 40% higher with 11.5¢/kWh. There was a single 5-minute price spike at 11:30 am on Wednesday, January 2 due to wind generation dropping off sharply. But gas-fired generators stepped in to pick up the slack, and the price quickly corrected. Other than that, it was smooth sailing in the Texas wholesale electricity market. With that price spike, it wasn't just supply and demand, but also weather, that played a big role in the wholesale price. Last week, Texas was mostly cold with low 30s and 40s for much of the week. This week, you can expect it to get a bit warmer with mid-70s early in the week, and cooling down with more rain toward the weekend.