What is ERCOT?*
The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to 24 million Texas customers. That represents nearly 90 percent of the state's electric load. As the independent system operator for the region, ERCOT has three main functions that ensure the timely delivery of energy in Texas.
- Schedules energy transfers — to ensure the electric grid can accommodate scheduled energy transfers from more than 550 generation units along more than 43,000 miles of transmission lines.
- Maintains grid reliability — so that electricity can be reliably transmitted to homes and businesses by managing the electricity supply on the grid and monitoring the flow of electricity between the power generation companies that put electricity into the grid and the public utilities that deliver electricity to customers.
- Manages retail transactions — on a daily basis, ERCOT monitors transfer schedules from wholesale buyers and sellers. ERCOT serves as the central hub for all retail power transactions. When electric customers switch, ERCOT transmits all of the information related to that transaction accurately to the appropriate companies in a timely manner.
The map above is showing the current ERCOT wholesale settlement point prices. These prices vary throughout the day based on energy demand and usage. During the hot summer months, pricing can reach over $1000.00 per megawatt hour. As the demand on electricity fluctuates throughout the day in each region, so does the price paid by your electric provider. Moving power usage from peak hours can save you and your utility money.
To learn more about the grid and key measurements of its operation, download the ERCOT App or visit the ERCOT website here.
*Source, ERCOT website, "About ERCOT"