Wholesale electricity costs increase

The extreme heat that punished the Rio Grande Valley may have let up for now, but the damage has been done. The statewide strain on the power grid made the Public Utility Commission raise the cap on wholesale electricity prices

This is one of several measures being considered by the commission to encourage investment in new power generation throughout the state to handle a continued growth in Texas population, Public Utility Commission spokesperson Terry Hadley said.

The price power generators will now charge their customers went up 50 percent from $3,000 per megawatt hour to $4,500 per megawatt hour.

Advocates for low income families like Loaves and Fishes say the higher costs for some retail electric providers will sooner or later mean higher electric bills.

We'll probably see more people in the coming to us for help if prices go up especially by that much, said Bill Reagan.

The folks here in the Rio Grande Valley are very vulnerable and people are really on the edge of poverty.

Reagan the executive director of Loaves and Fishes wants to make sure the money isn TMt pocketed and new plants will be built.

Of course one would hope that does happen because it would be good for everybody if we have more business, said Reagan.

Then we'll have more jobs and more people employed.

Hadley says that's the purpose of attracting investors."This issue will only occur during brief events when electricity demand is only highest in the state and that's on the very hottest summer afternoons.

The idea is to encourage this price point for these peak demand events that way investors will realize there is needed capacity in the Texas electric market.

The new prices on wholesale electricity will go into effect August 1st.

This change will affect every business, school district, home, and industrial plants.

It will be up to the individual companies how they pass along the increase.For more information follow Astrid on TwitterClick here to follow Astrid Martinez on Facebook