Forward power prices in Texas have moved up in response to efforts by state regulators to boost the wholesale market cap in its competitive electric market, industry sources said this week.

The Public Utility Commission of Texas proposed increasing the cap on wholesale price to $4,500 per megawatt-hour beginning in August, up from the current $3,000 price cap.

Raising the wholesale cap whenever supplies are tight is the latest in a series of market adjustments by the PUC and the Electric Reliability Council of Texas (ERCOT) to avoid problems seen in 2011 when a protracted heat wave strained electric supplies and threatened rolling blackouts.

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