The ERCOT Rollercoaster
June 03, 2025
The ERCOT market can feel like a rollercoaster, with prices rising and falling, leaving us all a bit strained. Recently, we've seen Bal 25 power prices rise by more than $10 over the last 3 weeks, only to suddenly drop. The reason? Weather.
ERCOT is a highly reactive market. A single volatile event can push summer trading prices over $180. However, the current weather outlook is much milder compared to this time last year. This has led to lower summer trading prices and, consequently, lower power prices.
Looking ahead, the forecast predicts more rain for most of June, which means cooler temperatures compared to last summer. This should help keep power prices in check as we move into the hotter months. However, as we all know, Texas weather can be quite unpredictable, and a sudden shift could change the outlook instantly.
