Texas power prices jump 100% as record heat wave sends demand soaring

• Texas power prices soared 100% on Tuesday amid a massive heat wave that broke some records.
• The price shot up to about $5,000 per megawatt-hour from $2,500 earlier in the day.

Texas power prices doubled on Tuesday as record high temperatures in parts of the state sent demand for cooling soaring.

By the evening, power cost about $5,000 per megawatt-hour, up from $2,500 earlier in the day, according to state grid operator the Electric Reliability Council of Texas (ERCOT).

On Tuesday, San Angelo in western Texas set a new record high temperature of 114 degrees, topping its prior record of 111 degrees.

And in the Rio Grande Valley, Del Rio hit a new high of 113 degrees. Meanwhile, Dallas and San Antonio also set new records.

Adding to the demand on Texas power supplies and prices is the tropical-level humidity in the state that worsens the heat effect, making it feel like 120 degrees or more.

The heat wave is expected to last longer than a week, meaning the power grid will be under extended strain.

In fact, ERCOT has predicted that Wednesday will see a new record high for power use, which should rise to 80,458 megawatts from 79,203 MW on Tuesday. That would exceed the current all-time high of 80,148 MW that was set in July 2022.

The heat wave is expected to continue toppling records next week, when ERCOT sees demand reaching 82,080 MW on Monday and 83,555 MW on June 28.