KAIBA WHITE: In reality, people have a lot of different things tugging at their attention and their bandwidth. Several customers in Texas who use the electric … INSKEEP: What's an example of the kind of costs that people face? And so a lot of our economic decisions are actually made on autopilot. In January, they paid 257 bucks for electricity. Now think about Texas, where some people suddenly have utility bills in the thousands of dollars. How does this even happen? But when the Texas power crisis hit, the state’s Public Utilities Commission raised the cap on electricity prices to $9 per kilowatt-hour, leaving many people with completely insane bills to pay. INSKEEP: I guess you got to explain the Texas system here, because I mean, I get a utility bill. So they were just sitting there, watching the charges on their credit cards rack up. Christopher Connelly is with member station KERA in Dallas and joins us now. Governor Greg Abbott says no one should have to pay these exorbitant bills. Visit our website terms of use and permissions pages at www.npr.org for further information. I pay the utility bill. That deregulated market also allows for the sale of unusual policies like the ones the Marrses have, plans with variable rates for electricity. CONNELLY: Well, it works great when the weather's good. And yesterday, the Public Utilities Commission temporarily blocked companies from sending out bills or shutting off customers' power for nonpayment. (CNN Business)Editor's Note: A … INSKEEP: Well, is the state trying to help now? Texas Governor Promises to Address Skyrocketing Electric Bills Gov. It's a side effect of last week's storm that overcame the power grid. “We are hoping there will be relief,” Royce said. So Texas has a deregulated market for electricity. Griddy charges customers at a market rate that varies depending on current power prices. NBC News reports that some Texans are getting bills as … Texans are reporting receiving exorbitant electric bills despite not having power during the storm. So there will be hearings looking into the issue this week. Texans who managed to keep the lights on during the winter storm are getting sky-high electric bills, the product of a deregulated industry that allows power companies to charge variable rates. Sitemap The storm killed 55 people across seven states, including 31 in the Lone Star State, where residents are now facing sky-high electric bills. This text may not be in its final form and may be updated or revised in the future. I mean you go from a couple hundred dollars a month…there’s absolutely no way‚ it makes no sense,” Williams, who said he received the bill from the energy firm Griddy. The price of power in Texas spiked from $50 to $9,000 per Megawatt in some cases due to the supply and demand disaster, according to the station. This story has been shared 126,049 times. Royce Pierce, who lives in the Dallas suburb of Willow Park, said the electricity bill for his three-bedroom home soared to  $10,000 over the past few days. While many were seeing prices as high as $5,000 for just over a week’s worth of electricity, Royce Pierce of Willow Park, Dallas said his family’s bill is expected to reach $10,000. But the storm made that impossible. Do Not Sell My Personal Information, Your California Privacy Rights Astrein’s Griddy bill from Feb. 1-20, 2021. She lives in Frisco, which is a Dallas suburb, with her husband, Mike, and three kids. The exorbitant bills prompted Republican Gov. You know, the other issue that we're seeing is that the deregulated system assumes that consumers will fend for themselves, that they'll find an electricity plan where they won't get hosed if a big storm rolls in. It is designed so that when there's a shortage of electricity, the price will go up, and power companies will have an incentive to generate more electricity. This story has been shared 126,049 times. Costs for some residents went up when the power was on and also for some when it was turned off during the extreme weather, Fox 4 reported Friday. And I've been really stressed about it. Some Texans received electric bills up to $17,000 after the storm. One Texan, according to The New York Times, received a $16,752 electric bill. She has one of those big bills. According to the Electric Reliability Council of Texas (ERCOT), which manages the state’s power grid, only 700,000 homes had their electricity restored overnight. Many of those who have reported receiving large bills are customers of electricity provider Griddy, which only operates in Texas. So, well, I talked to Shannon Marrs. Updated 8:02 PM ET, Tue February 16, 2021. Shannon Marrs said it makes her sick to her stomach to think about it. 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All Rights Reserved, 65-year-old woman arrested after refusing to mask up or leave bank: video, Texas man drives dealership loaner to rob bank to buy BMW: feds, Unsettling video captures hordes of migrants as they’re smuggled into US, Texas rapper Obe Noir fatally shot after being chased down on Houston street, Grab a robot vacuum for as low as $40 with this massive weekend sale, Best men's swim trunks 2021: 11 unique, comfortable bathing suit shorts, 10 bathroom storage ideas for organizing and clearing up your space, You don't have to win a Grammy to buy these special-edition Bulova watches, How to invest in real estate remotely — and what sets Roofstock apart, Former African slave hub transformed with giant art piece. The Marrs family spent hours trying to switch to a different company last week to find one with a more traditional fixed-rate plan. Now, as power resumes for most of Texas, some households face utility bills as high as $10,000. Customers with so-called “variable or indexed” electricity plans in Texas — the only state to run its own unique stand-alone electricity grid  — are partially controlled by market demand. Dallas-area resident Ty Williams was hit with sticker shock when his monthly bill soared from $600 last month to nearly $17,000 so far this  month, according to the local station WFAA. Read: The Two Hours That Nearly Destroyed Texas’s Electric Grid. “How in the world can anyone pay that? 126,049, This story has been shared 97,109 times. With ongoing water shortages, hundreds of thousands still lacking power... Post was not sent - check your email addresses! Electric bills in the Lone Star State skyrocketed to as high as $17,000 per month after a historic storm and power outage sparked a high demand for heat, according to reports Friday. And those are the customers who are ending up with these sky-high bills. “When your electric company tells you to switch but there has been a hold on switching for over a week now,” one Texas resident tweeted, along with a screenshot of her $3,801.16 electric bill. I don't even necessarily know what my cost for a day is. One man received a $17,000 bill for his power use during the … “The last thing an awful lot of people need right now is a higher electric bill — and that’s unfortunately something a lot of people will get stuck with,” said Matt Schulz, a chief industry analyst. A Reliant Energy spokeswoman told NBC that it’s offering flexible bill payment options to support customers impacted by the storm. CONNELLY: Right. “This is something maybe we can skate by and tackle as time goes on but how many people can’t? Thanks for contacting us. Kaiba White from the consumer rights group Public Citizen says that just doesn't really happen. How does that happen? During those really cold days last week, the Marrses were paying 1 or $2,000 a day for electricity. That caused prices to increase as Texans who didn’t lose power cranked up the heat amid brutally cold temperatures this week, an expert told NBC. But when it was grossly out of whack over the past several days, the cost of power in the wholesale market went crazy. Deep freeze sends Texas electricity prices soaring 10,000%. However, some of those affected but the extreme weather in Texas are also facing another unexpected challenge—high electric bills. All rights reserved. So this is wonky. SHANNON MARRS: It's awful, and there's nothing you can do. 68,269, This story has been shared 59,203 times. Your Ad Choices Texans who managed to keep the lights on during the winter storm are getting sky-high electric bills, the product of a deregulated industry that allows power companies to charge variable rates. CONNELLY: During those - yeah. After a deadly winter storm left millions in Texas without power this week -- along with shortages of food and clean water -- some Texans are now seeing exorbitant electricity bills. Millions of Texans lost their power last week as they desperately tried to stay warm amid a historic chill that descended upon the region. On a typical February day, she pays Griddy less than $2.50 for power. Lisa Chumley, a second-grade teacher in Dallas, received a bill of over $11,000 from Griddy for less of a week of electricity. CONNELLY: Right. Greg Abbott to … Electricity supply and demand in Texas has really stabilized now. Do Not Sell My Personal Information. Privacy Notice Jennifer Lopez and Alex Rodriguez break up, call off two-year engagement, Jennifer Lopez and Alex Rodriguez broke up over Madison LeCroy scandal, Mom dies four days after receiving second dose of Moderna vaccine, Scientists want to build a sperm bank on the moon, Man says he lived in secret Veterans Stadium apartment. But, you know, there is so much political pressure right now to make changes, you know, because - even as people are just starting to repair burst pipes and get the water running again. Copyright © 2021 NPR. Republican Texas Lieutenant Governor Dan Patrick said Wednesday that Texans who received electricity bills as high as $17,000 amid the state's recent … A lot.”. But bear with me here. Sorry, your blog cannot share posts by email. Some Texans say they're getting massive electric bills following the winter storm that caused chaos throughout the state this past week. We've received your submission. Dallas resident DeAndre Upshaw received a $7,000 electric bill this month. Abbott's also saying that the state will force power plants to weatherize, so they're prepared for the next storm. Among them is Susan Hosford of Denison, Texas. You know, there have been warnings about that for years, actually, and the system broke down almost exactly like this about a decade ago. INSKEEP: Christopher Connelly of KERA, thanks. Texans say energy companies are on a power trip. The authoritative record of NPR’s programming is the audio record. Good morning. INSKEEP: Does this suggest that this deregulation doesn't work? ... many took to social media to show electricity bills ranging as high as $8,000. You know, and I got to say this level of government intervention feels anathema to the way Republicans have governed this state for decades. Electric bills in Texas skyrocketed to as high as $17,000 per month after a historic storm and power outage sparked a high demand for heat, according to reports Friday. — Liz Guess, a Texas mother who faces a high electricity following the state’s recent cold snap Now that the storm has passed, Guess is staring at … People who managed to keep their power are now paying for it. CONNELLY: And as of Saturday, the family's electric bill for the month of February was $10,180.76. 97,109, This story has been shared 68,269 times. Terms of Use By Allison Morrow, CNN Business. 53,262, © 2021 NYP Holdings, Inc. All Rights Reserved A Texas resident's power bill increased over $7,700 this month as the outages and severe weather in the area rose the cost of electricity. And normally, they would be able to do that. February 19, 2021 | 5:52pm | Updated February 19, 2021 | 5:52pm. But the one-day … Griddy did not immediately respond to a request for comment. The company charges customers a $9.99 monthly fee and the cost of spot power traded on Texas’ electric grid based on the time ... to another provider to avoid unthinkably high electricity bills. Electricity customers in North Texas are looking for answers regarding their sky-high electricity bills following the winter storm. Accuracy and availability may vary. But, you know, it appears that there weren't market incentives in this market system for power providers to make sure that they were prepared to weather a massive winter storm. DALLAS (CBSDFW.COM) – Texas Governor Greg Abbott as well as lawmakers have promised to help the tens of thousands of Texans hit with high electric bills, but … And, you know, $10,000 is a ton of money. Your California Privacy Rights CONNELLY: Yes. Think for a moment about that famous survey suggesting that many people would struggle to pay an emergency expense of even a few hundred dollars. “Hopefully if they’re decent, they won’t charge people for this, because we had no control over the situation,” said Garcia, who is an administrative associate at UT Southwestern Medical Center. Veronica Garcia, a Reliant Energy customer in Mansfield, Texas, said the electricity bill for her one-bedroom apartment nearly doubled to $114 for her  one-bedroom apartment. By Robert Montoya | February 19, 2021 As power continues to be restored statewide, questions have arisen of how high citizens’—and their local governments’—electricity bills will be after the City of Denton was hit with a power bill higher than its total electricity costs for the past year. Electricity bills for Texans who chose a rate plan that changes with wholesale prices ticked up by more than 10 times. Dallas resident Ivet Cantu, 45, points to her electricity bill from Griddy energy on an app. An Oncor Electric Delivery lineman crew works on repairing a utility pole that was damaged by the winter storm that passed through Texas. Its website says that … 59,203, This story has been shared 53,262 times. But those whose power continued to stay on were hit with bad news, too. And therefore, you know, all these theories like that we will shop for the cheapest and best plan for ourselves - they don't play out. “Hopefully I can beat the charges and they do the right thing.”. AG sues Texas utility over customers' sky-high energy bills. NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR.