He stated that being looking out solely mattered when cash wanted to be borrowed. BTU was planning to borrow cash for a brand new distribution service middle, however Hegwood stated the borrowing would seemingly be postponed. Nevertheless, he stated suspending this step won’t have an effect on your entire undertaking, as extra work can nonetheless be accomplished within the meantime.
Throughout Hegwood’s testimony, he shared that BTU had a 175-day money reserve coverage – which stands at $ 63 million – to cowl unexpected prices and adjustments in revenue. Earlier than the storm, BTU was $ 21 million above this goal with a complete of $ 84 million in money reserves. Hegwood stated he believed BTU would be capable to fund all prices with lower than $ 21 million of its working reserves, so not profiting from the 175 days of money move.
He added that BTU won’t want to extend buyer charges.
It would nonetheless take a while to find out what the online value might be, as a number of elements are nonetheless being resolved. This consists of how a lot BTU owes the grid operator, Electrical Reliability Council of Texas, for the vitality that BTU needed to buy available in the market, in addition to figuring out how a lot ERCOT owes BTU because the BTU mills have continued to function for all of the storm, permitting the native utility to proceed promoting vitality.
In the course of the winter storm, market costs fell from a mean of $ 22 per megawatt hour in 2020 to $ 9,000 per megawatt hour, in keeping with the Houston Chronicle. Moreover, Hegwood stated BTU needed to pay 154 occasions the traditional value for pure gasoline the utility wanted to energy its mills.