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In
a Feb. 19 letter to Biden, the American Public Power Association
(APPA) and the American Public Gas Association (APGA) said the
recent cold weather in the Midwest and Texas boosted demand for
electricity at the same time power generation was constrained
due to freezing gas wells and pipelines.
That forced utilities and other energy suppliers to pay billions
of dollars to buy gas and power for their customers. In addition
to heating homes and businesses, gas also powers much of the
generation in Texas and other states affected by the freeze.
"While we await relief from the Administration for this
financial burden as well as the results of the federal
investigation, we continue to work with our members at the state
and local levels to find solutions to the high prices that gas
consumers may be forced to pay in the coming months," APGA said
in a statement.
Gas prices, which usually trade around $3 per million British
thermal units (mmBtu), rocketed to over $300 per mmBtu at some
hubs, while power prices, which usually trade around $25 per
megawatt hour in Texas, soared to over $10,000 at times.
One public-owned power plant spent $78 million for four days of
gas supply, the groups said, noting the fuel for that plant cost
only $18 million for all of 2020.
On Thursday, Dave Schryver, APGA CEO and president will be
testifying before the Illinois Commerce Commission on the gas
price fluctuations and their impact on public gas utilities and
their customers.
Officials at APPA and the U.S. Department of Energy were not
immediately available for comment.
(Reporting by Scott DiSavino in New York, Timothy Gardner in
Washington, Eileen Soreng in Bengaluru Editing by Lisa Shumaker
and Christopher Cushing)
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