Vistra Accuses Energy Transfer of Price Gouging Before Storm

Author of the article: Bloomberg News Naureen S. Malik and Mark Chediak (Bloomberg) — Vistra Corp., one of the largest power generators in Texas, accused units of pipeline operator Energy Transfer LP of price gouging ahead of a looming winter storm that will raise demand for natural gas. Two Vistra units filed a complaint Tuesday…
Vistra Accuses Energy Transfer of Price Gouging Before Storm

Author of the article:

Bloomberg News

Naureen S. Malik and Mark Chediak

(Bloomberg) — Vistra Corp., one of the largest power generators in Texas, accused units of pipeline operator Energy Transfer LP of price gouging ahead of a looming winter storm that will raise demand for natural gas.

Two Vistra units filed a complaint Tuesday to the Texas Railroad Commission, which oversees the oil and gas industry, requesting action against the pipeline firm over a plan to charge a premium when electricity prices at certain hubs exceeds $500 a megawatt-hour.

“Our top priority is always to ensure the safe and reliable delivery of natural gas for all of our customers, including human needs customers,” Energy Transfer said in a statement.  “Any policies we put forth are to achieve that, including our No-Notice Gas Sales,” which take into account market, weather and operating conditions, the company added. 

Adding a premium to some gas supply prices, described in the complaint as an Ercot Price Adder, is “designed to capitalize on rising natural gas prices as Texans face the risk of freezing in the dark,” the Vistra units said in their complaint. The units asked the commission to order Energy Transfer to comply with an earlier pricing agreement and to launch enforcement action over alleged violations of price gouging rules. 

The Texas Railroad Commission, which regulates the gas industry, will hold a prehearing conference on Feb. 11 to discuss Vistra’s complaint and possible action, according to a filing Wednesday. Representatives from Energy Transfer are ordered to show that they haven’t violated any rules. The scope of the hearing, though, “is strictly limited to compliance and not the merits” of Energy Transfer’s new pricing terms or structure, the filing said. 

Plunging temperatures are poised to test the main Texas grid in coming days and expectations of record winter demand have already sent electricity prices for Friday surging. On-peak power for Ercot’s North hub closed at $800 for Feb. 4 on the Intercontinental Exchange, according to traders. 

Vistra and units of Energy Transfer had already been in a payment dispute over last year’s catastrophic Texas storm. The units last month threatened to cut service to Vistra over $21.6 million owed in fees from February 2021. Vistra has argued those fees are illegal.

©2022 Bloomberg L.P.

Bloomberg.com

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
EU launches 5.4-bln-euro hydrogen project with Alstom, Daimler, others
Read More

EU launches 5.4-bln-euro hydrogen project with Alstom, Daimler, others

Author of the article: BRUSSELS — The European Commission on Friday approved a 5.4-billion-euro ($5.4 billion) hydrogen project jointly funded by 15 EU countries and 35 companies including Alstom and Daimler Truck, seeking to gain the edge in an innovative sector. Other participating companies include Ansaldo, Bosch, Enel , Fincantieri, Orsted and Plastic Omnium. The…
Swedish Inflation at 28-Year High Tests Riksbank’s Patience
Read More

Swedish Inflation at 28-Year High Tests Riksbank’s Patience

Author of the article: Bloomberg News Niclas Rolander (Bloomberg) — Swedish inflation accelerated more than expected in November to the highest level in almost 28 years, testing the central bank’s patience for a price surge it believes to be largely transitory.  The Riksbank’s target measure, CPIF, stood at 3.6% last month, Statistics Sweden said Tuesday.…
Nissan Canada and Karine Vanasse to Continue Their Partnership for the Next Three Years
Read More

Nissan Canada and Karine Vanasse to Continue Their Partnership for the Next Three Years

Author of the article: Nissan Canada and Karine Vanasse to Continue Their Partnership for the Next Three Years. Business Wire Embark. Vibrate. Dive. Karine Vanasse and Nissan Canada are preparing captivating campaigns that will echo their shared values of trust, modernity and accessible innovation. Advertisement 2 This advertisement has not loaded yet, but your article…
Amazon among key tech firms to drop CES plans on COVID-19 concern
Read More

Amazon among key tech firms to drop CES plans on COVID-19 concern

Author of the article: Reuters Elizabeth Culliford and Sheila Dang Amazon Inc, Facebook parent Meta Platforms Inc, Twitter Inc and Pinterest Inc will not send teams to the Consumer Electronics Show (CES) in Las Vegas as concerns grow about Omicron https://www.reuters.com/world/omicron-spreading-infecting-vaccinated-who-2021-12-20, the firms said on Tuesday. CES, which serves as an annual showcase of new…