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Texas' electric reserves for next summer a bit low

Published on NewsOK Modified: December 10, 2012 at 6:00 pm •  Published: December 10, 2012

But if three power-producing projects that are being constructed come online as scheduled in the third quarter of 2014, ERCOT's reserves could be 13.6 percent in time for the peak demand, usually in August, the agency said.

Warren Lasher, ERCOT's director of system planning, said Monday that the long-term outlook will change over time as construction projects move forward.

In October, the Texas Public Utility Commission voted to double the cap on wholesale electricity prices over the next three years, saying that a price hike was necessary to encourage more power plant construction and prevent outages in areas served by ERCOT.

Industry experts say companies that operate the state's power plants are losing revenue because prices are too low for most of the year and only make money during the hottest summer and coldest winter months.

Texas customers only pay for electricity that reaches the grid, not for companies' banked capacity.