The winter storm and related events in power and gas markets from February 11th to February 21st in Texas and the Midwest have left many retail consumers of power and natural gas worried about potential impacts to their energy spend. While the immediate event is over, there are ongoing concerns for many customers as to what, if any, financial impact they were exposed to during the extreme weather even. Below is some information that may be helpful in assessing whether or not your business may have been impacted.

Understanding the Financial Impact to Retail Power & Gas Bills

Retail customers on fixed price contracts (gas or power) should be insulated from the severe price spikes seen in the market last week. However, consumers with certain variable based contracts should be concerned. Customers with contracts where the following cost components were not fixed, but instead indexed or passed through, could see a meaningful increase their February bills.

  • Electricity indexed to either the Day-Ahead or Real-Time markets
  • Ancillary service costs treated as a pass-through cost
  • Line losses treated as a pass-through cost
  • Natural gas costs indexed to Gas Daily prices (note that contracts indexed to First of the Month prices will likely not be impacted)

Additionally, natural gas customers that were subject to utility curtailment or Operational Flow Orders (OFOs) could have exposure to Gas Daily prices if they did not fully comply with the curtailment or OFO.

Energy Edge Can Help You Assess Your Financial Impact

Energy Edge is poised to help customers perform the following in an effort to help them understand the potential economic impact to their February electricity & gas invoices if they are exposed to the above costs.

  • Estimated Invoice: We can help create an estimated invoice based on types of costs indexed or passed through using either actual metered data or estimated usage.
  • Invoice Validation: Once invoices are issued by a supplier we can validate if the charges have been correctly calculated.

In addition to the above, Energy Edge can help in addressing:

  • Disputes with suppliers about curtailment orders and Operational Flow Orders
  • Price discrepancies
  • Declarations of force majeure by power and/or gas suppliers
  • Other contractual questions or disputes


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