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The Texas deep freeze could force this energy company out of business

February 22, 2021. Summarized by summa-bot.

Compression ratio: 62.4%. 1 min read.

HOUSTON, TEXAS - FEBRUARY 21: A view of high voltage transmission towers on February 21, 2021 in Houston, Texas. Millions of Texans lost power when winter storm Uri hit the state and knocked out coal, natural gas and nuclear plants that were unprepared for the freezing temperatures brought on by the storm. Wind turbines that provide an estimated 24 percent of energy to the state became inoperable when they froze. (Photo by Justin Sullivan/Getty Images)

Electricity and gas provider Just Energy warned that the financial impact of the Texas winter storms could force it out of business.

New York (CNN Business)Electricity and gas provider Just Energy warned that the financial impact of the Texas winter storms could force it out of business.

Just Energy said Monday that it could lose about $250 million from Texas' deep freeze that left millions without power last week.

The massive spike in energy demand during Texas' cold snap sent prices soaring.

Just Energy noted that Texas energy prices were selling for as much as $9,000 per megawatt hour for much of last week -- the cap Texas' energy regulator imposed on the market.

Prices had been around $50 a megawatt hour prior to the storm, according to Ercot, Texas' electrical grid operator.

Texas' utility regulator, Public Utility Commission of Texas (PUCT), said it is investigating "the factors that combined with the devastating winter weather to disrupt the flow of power to millions of Texas homes. "

The company accesses electricity and natural gas from wholesale markets, which were thrown out of whack during the Texas storms.

The company said it would delay the announcement of its fourth-quarter financial statement as it works to determine the financial impact of the Texas storms.

Texas Gov. Greg Abbott said Sunday he expected all power to be fully restored to every house by late Sunday or Monday.

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