In July 2012, Frontier Texas, an Old West museum located in Abilene, received an electric bill nearly $4,000 higher than expected. Oddly enough, the museum hadn’t used an unusual amount of power that month. Rather, the cause of the high bill was the fact that Abilene lies in Texas’s western power trading zone, which happens to be home to the Permian Basin, the nation’s most prolific oil-producing region. How is oil development raising electricity prices in West Texas? It all has to do with congestion on the power grid.
Keep reading at Scientific American.
Is a policy analyst consultant for TCAP, a coalition of political subdivisions in Texas that purchase electricity in the deregulated market for their own governmental use. Because energy costs are typically a significant budget item to our members, TCAP is consistently looking for ways to save our members money, through cost-saving contracts, energy efficiency or demand response programs.