READ: Affiliate Andrew Kleit and colleague Todd Aagaard Comment on Electricity Prices of the Texas Power Crisis
Law360 published a piece by Monument Economics Group Affiliate Dr. Andrew Kleit and his colleague Todd Aagaard. This paper delves into the electricity prices charged during the peak of the power shortage and subsequent 32 hours post-peak during the Texas Power Crisis of February 2021. Numerous lawsuits have been filed alleging that power generators now owe staggering amounts to electricity suppliers. The authors delve into the pricing factors and how the operating reserve demand curve particularly plays a pivotal role in determining what prices should have been absent the Texas Public Utility Commission interference.