San Miguel Will Continue to Deliver the Power Texans Rely On
Despite the recent winter storm experienced by Texans in mid-February, San Miguel Electric Cooperative will continue to safely and reliably provide power to more than 78,000 South Texas homes.
San Miguel sells its power to South Texas Electric Cooperative (STEC) pursuant to a long-term purchase power agreement. STEC, in turn, transmits the energy from the San Miguel power plant to its eight-member distribution cooperatives.
San Miguel is proud to be an important part of STEC’s diverse set of generation resources, which help STEC to protect itself and its members from market forces and extreme weather events, such as what just happened in February.
Due in part to the fact that San Miguel was able to maintain operations and continue producing power for STEC throughout the recent severe winter storm, STEC has reported that it does not expect to suffer financial duress due to the event or expect to see rate increases to cover its costs on a per kilowatt hour basis, provided it receives the expected payments from the market for energy generated and services provided during this event.
In turn, San Miguel does not expect that it will see a revenue shortfall or short pay due to the extreme weather event. San Miguel has remained financially viable and has not had to utilize additional liquidity outside of its normal operating levels or make a request to expand its current levels of liquidity.
During the storm event, the efforts of San Miguel employees were nothing short of heroic, as they worked under severe conditions to ensure the continuous generation of energy into the grid. Many worked around the clock and in very dangerous conditions. We cannot thank them enough for their commitment to helping deliver power to the grid in service to their neighbors, as well as to residents and businesses across the State.