A number of wind energy integration studies have investigated the monetary value of using day-ahead wind power forecasts for grid operation decisions. Historically, these studies have shown that large cost savings could be gained by grid operators implementing the forecasts in their system operations. To date, none of these studies have investigated the value of shorter term (0- to 6-h ahead) wind power forecasts. In 2010, the Department of Energy and the National Oceanic and Atmospheric Administration partnered to form the Wind Forecasting Improvement Project (WFIP) to fund improvements in short-term wind forecasts and determine the economic value of these improvements to grid operators. In this work, we discuss the preliminary results of the economic benefit analysis portion of the WFIP for the Electric Reliability Council of Texas. The improvements seen in the wind forecasts are examined and the economic results of a production cost model simulation are analyzed.