Texas: Watchdog Finds $16B Power Overcharge Amid Freeze

The US state of Texas' power grid operator overcharged companies $16 billion last month when millions were left without power amid frigid temperatures, according to a market watchdog.

Citing findings by independent market monitor Potomac Economics, Bloomberg reported late Thursday that the Electric Reliability Council of Texas (ERCOT) set the maximum price of electricity at $9,000 per megawatt-hour, which caused massive overcharges for some nine hours on Feb. 18-19.

In a letter, the watchdog demanded the overcharge be corrected.

Several power companies also asked the Public Utility Commission to reset the pricing and waive their payments until errors are resolved.

"If we don't act to stabilize things, a worst-case scenario is that people will go under," Carrie Bivens, the vice president of Potomac Economics, told Bloomberg.

Last month an unexpected cold snap plunged 4.5 million homes and businesses in the Lone Star state into darkness, claiming the lives of dozens.

Critics have charged Texas' go-it-alone power grid – unconnected to other US states – and lack of regulations led to misery for millions as well as sky-high power bills. -