EUR/USD 1.14651
-0.665%
Gold 4264.07
-0.695%
Oil 97.399
-3.494%
USD/JPY 156.303
0.777%
GBP/USD 1.33803
-0.717%
GBP/JPY 209.133
0.050%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
RSM Chief Economist Joseph Brusueras: Warsh delivered the right hawkish signals at the press conference and attempted to reinforce the Fed’s credibility in restoring price stability, while also enhancing his own credibility.U.S. stocks continued to decline after the Walsh press conference, with the S&P 500 falling 1%, its biggest drop since July 29, the Dow Jones Industrial Average down 1.65%, and the Nasdaq Composite down 0.6%.On September 17th, Federal Reserve Chairman Warsh declined to answer questions at a press conference regarding his interactions with US President Trump. Trump has been calling for lower interest rates in recent months. Warsh stated, "I have no comment on my discussions with the president." White House Council of Economic Advisers Chairman Christopher Phelan said on Tuesday that raising interest rates would be a "mistake."On September 17th, Federal Reserve Chairman Warsh stated that he would not disclose details of future interest rate decisions by the Federal Open Market Committee (FOMC). He said, "I am not responsible for providing forward guidance. Our decision today (to raise interest rates) is a carefully considered, serious, and responsible one. We have been preparing for and thinking about this decision for the past 110 or 120 days." Warsh also stated that this decision was not market-driven. He said, "Our decision today is based on our assessment of the current situation, our judgment of the employment trend, and our assessment of the strength of the economy. Sometimes, the market tries to anticipate our decisions. I watch market prices to see what information the market is sending. But todays decision is our own."On September 17th, Warsh stated that while the Federal Reserve cannot prevent price shocks in commodities such as oil on its own, the central bank can use policy tools to prevent further spread of inflationary pressures. Warsh said, "We cannot influence the price of any single commodity, such as oil or groceries." However, he pointed out, "We can and will ensure that any changes in relative prices do not spread further, and do not have second- or third-order effects on the economy. Thats our responsibility, and thats what were doing." Warsh made these remarks as U.S. diesel prices hit a record high due to the Iran war.

The Texas Heat Wave Reveals Electricity Grid Congestion Issues

Charlie Brooks

May 18, 2022 10:14

E2.png


A plea over the weekend for Texans to limit their air conditioner and appliance use after six power plants went down reveals a weakness in the state's grid: transmission line congestion.


Since last year's February freeze, which caused more than 200 deaths amid widespread blackouts and power-price hikes that forced at least five power marketers into bankruptcy, power system reliability has been a concern. Electric Reliability Council of Texas (ERCOT), the state's grid operator, established obligatory reliability criteria for utilities to prevent future disruptions.


In contrast to natural gas shortages and frozen power plants, the weekend power alert had nothing to do with fuel availability. According to the state, six power plants producing 2,900 megawatts of energy "trip off," triggering the caution.


According to energy analysts, the consequent wholesale prices of almost $4,000 per megawatt hour in Houston and negative prices 150 miles (241 kilometers) distant demonstrated that power was unable to meet demand elsewhere.


According to Ramanan Krishnamoorti, chief energy officer at the University of Houston, pricing anomalies and negative prices may have resulted from transmission issues.


According to Joshua Rhodes, a research associate at the University of Texas at Austin Energy Institute and Webber Energy Group, the likelihood of many power plants being offline for their own unique reasons is vanishingly unlikely.


ERCOT declined to make an official request for comment on Monday, and a spokesman refused to identify the cause of the shutdown of six power facilities. The operator stated that it will have enough power for the state this summer.


Neal Dikeman, a partner at the investment firm Energy Transition Ventures and former director of a smart grid startup that supplies power flow management, predicts that congestion will continue to be a problem in Texas as the summer progresses.


"During the summer, there is often congestion due to people turning on their air conditioners, which causes the temperature limitations of the transmission lines to be reached."

Suggestion