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Cheap wind power distorting power market pricing, leads to legislative interest in study | Houston Chronicle

Subsidies for wind and other alternative energy were established in 1978 by Congress to reduce reliance on foreign oil, following the Arab oil embargo that sent energy costs skyrocketing.

Both the Senate and House bills direct the Public Utility Commission and the state’s grid manager Electric Reliability Council of Texas to study how to change the market design to compensate for low prices coming from renewable energy sources, including whether Texas should change the way transmission and distribution costs are allocated.

The bills also ask regulates to examine how to compensate fossil fuel generators when the wind is blowing so  hard and producing so much electricity that buyers are paid to take power from wind energy. Businesses and households have come to rely on those times of negative pricing – usually in the middle of the night – to run their manufacturing operations and turn on their swimming pool pumps.

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Cheap wind power distorting power market pricing, leads to legislative interest in study – Houston Chronicle.

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