The former head of the Texas power grid testified that he was ordered by Gov. Greg Abbott to keep power prices at the maximum price cap during last winter's winter storm.
Bill Magness, president and chief executive officer of Electric Reliability Council of Texas Inc., speaks during the 2019 CERAWeek by IHS Markit conference in Houston, Texas on March 14, 2019. Photo: Aaron M. Sprecher/Bloomberg via Getty Images
The former head of the Texas power grid on Wednesday testified that he was ordered by Gov. Greg Abbott to keep power prices at the maximum price cap during last winter's winter storm, theBill Magness, the former CEO of the Electric Reliability Council of Texas, said that former Public Utility Commission Chair DeAnn Walker told him that he was to do whatever necessary to prevent additional blackouts.
"She told me the governor had conveyed to her if we emerged from rotating outages it was imperative they not resume," Magness said Wednesday. "We needed to do what we needed to do to make it happen."Power prices were kept at the maximum of $9,000 per megawatt hour, more than 150 times normal prices, during last winter's storm, per the Chronicle.
Abbott's spokesman last year said the governor was not "involved in any way" in the decision to keep prices at the maximum price cap for days.Magness' decision is now part of a bankruptcy trial brought by the electric co-op Brazos Electric, which says that the decision to raise power prices was made recklessly, and that the $1.9 billion power bill it got from ERCOT pushed it out of business.
The decision was aimed at encouraging large power users like factories to stay offline, per the Chronicle.
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