Page Contents

    Advertiser Disclosure: At, our number one goal is to help you make better energy decisions. We adhere to strict editorial guidelines, however this post may include references to products offered from our partners.

    The Texas Public Utility Commission (PUC) could soon double the existing price cap on wholesale electricity in an attempt to spur the development of new generation facilities, Bloomberg reports.

    According to the news source, PUC chairwoman Donna Nelson recently spoke to the House State Affairs Committee to say that raising the maximum price generators can charge will be necessary for ensuring an adequate electricity supply, plus a 13.75 percent reserve margin.

    "A $9,000 cap will only result in a reserve margin of 8-10 percent," Nelson said. The wholesale price is currently $4,500 a megawatt hour, and that price could go up to $9,000.

    The commission is expected to vote on the proposal by the end of the week.

    Texas' current electricity market only pays for electricity that is provided, rather than for what is generated. The state's energy officials say that low prices have kept new generating sources to a minimum, despite a major increase in demand for electricity throughout the state.

    Texas' electricity market also benefits from energy deregulation, which gives customers the ability to compare electricity plans to find the best electricity rate.