Texas Power Prices Signal Grid Stress in Long, Hot Summer Repeat

A surge in Texas power prices for August suggests another summer of heavy electricity demand — and potential grid strain — to meet air-conditioning needs.

Traders start looking at prices months in advance to gauge the outlook for demand.

Already in mid-April, August power prices for Dallas soared to $168.70 a megawatt-hour, which was the highest level in five years for this time of the year, according to Bloomberg Fair value data. Prices were still hovering around that level on Friday, an 82% premium versus a year earlier.

The state’s grid operator warned the same day of possible deficient power ...