Deregulation and stupid GOP policies led to the disaster in TX
But on top of that, consumers paid more not less… for years
So says The Wall Street Journal
“Texas’s deregulated electricity market, which was supposed to provide reliable power at a lower price, left millions in the dark last week. For two decades, its customers have paid more for electricity than state residents who are served by traditional utilities, a Wall Street Journal analysis has found.
Nearly 20 years ago, Texas shifted from using full-service regulated utilities to generate power and deliver it to consumers. The state deregulated power generation, creating the system that failed last week. And it required nearly 60% of consumers to buy their electricity from one of many retail power companies, rather than a local utility.
Those deregulated Texas residential consumers paid $28 billion more for their power since 2004 than they would have paid at the rates charged to the customers of the state’s traditional utilities, according to the Journal’s analysis of data from the federal Energy Information Administration.
The crisis last week was driven by the power producers. Now that power has largely been restored, attention has turned to retail electric companies, a few of which are hitting consumers with steep bills. Power prices surged to the market price cap of $9,000 a megawatt hour for several days during the crisis, a feature of the state’s system designed to incentivize power plants to supply more juice. Some consumers who chose variable rate power plans from retail power companies are seeing the big bills.”
The first major snowstorm of 2021 is underway, with power outages hitting New Jersey, a state of emergency declared across 44 counties in New York state, and the largest recorded snowfall at Chicago O’Hare Airport since 2015.
So what is my point here? Texas was, and is not the only State that has suffered power outages due to the recent inclement weather.
California among other States also have deregulated power companies, so this isn’t a uniquely Texas thing.
It does look like the situation needs to be revisited and tightened up.
@Spartan, taking everything in your post as true, then why did you immediately blame green energy (when all those other states have green energy)?
Also, do you realize you are tacitly ADMITTING the key criticism of Texas . . which is that the government is so filled with conservative nutbags that ON PRINCIPLE they disconnected from other state’s transmissions SO that’s why they had this problem, right?????? Those other states that “deregulated”, why didn’t they have the problem? some are even MORE green, right?
Texas isn’t as much a “deregulation” story as it is a “deregulation run amuck” story
Just like “capitalism run amuck” is the problem more than capitalism
Texas deregulating and creating its own singular grid is the result of hyper-conservativism and just flat out greed, by both politicians and companies.
Look no further than our current struggles vaccinating and treating CV19 patients and you will see the same type of downside to privatization, which is that profitability often comes from COST CUTTING. Great for the shareholders, but not necessarily for the consumers.
if your goal is profits, you run super lean, uses cheaper parts and make a choice NOT to use more expensive cold-resistant equipment in a hot state like Texas. If your goal is STABILITY (as in a “utility”) you do things differently.
same with for profit healthcare. All those shareholders need their $ and that CEO needs his job and options, so the first thing you do is cut that barely used rural hospital. that same hospital that you might need in a pandemic.
we are just recently losing in the balancing act. we are all profit/shareholder wealth, even across industries whose purpose is stability, safety.
the shocking and sad (if true) part in Texas, at least according to WaPo, is the consumers actually paid MORE for the power. The lie of deregulation.
“And it is Abbott who, according to an analysis by the National Institute on Money in Politics, has collected more than $26 million in campaign contributions from the oil and gas industry. And who has received thousands of dollars in contributions from three members of ERCOT’s board. (Five members of the board resigned earlier this week.)
And it is Abbott — along with the rest of the Republican elected officials in the state — who ignored recommendations to winterize their energy operation following a 2011 winter storm that seized up a decent chunk of the state’s power grid. As the Texas Tribune wrote recently:
“In 2011, Texas faced a very similar storm that froze natural gas wells and affected coal plants and wind turbines, leading to power outages across the state. A decade later, Texas power generators have still not made all the investments necessary to prevent plants from tripping offline during extreme cold, experts said.“
becasue those Texas power generators are for profit companies, I think