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Think Power's Expensive in Texas This Year? Just Wait Until 2019

  • Vistra closed three coal units that generated 4.2 gigawatts
  • Forward price for 2018 peak jumped 40 percent over five days
Electrical Power Grid As Power Cuts Curb Growth In Africas Most Industrialized Nation
Photographer: Waldo Swiegers/Bloomberg

Massive coal plant retirements are already pushing up Texas power prices, and next year it could get even worse.

Vistra Energy Corp. eliminated more than 4 gigawatts of Texas’s capacity this year when it shut its money-losing Monticello, Sandow and Big Brown plants. That’s tightened supplies in Texas’s market, sending wholesale power prices for August delivery surging almost 40 percent in the past five days, forward curve data compiled by Bloomberg show. Vistra Chief Executive Office Curt Morgan is projecting that the same will happen next summer.