How Texas’s deregulated market for power led to exorbitant electric bills
“I felt almost guilty with these people not having electricity that I was complaining about my bill,” she told CNN on Monday. “At the same time, my complaint is: How am I gonna pay this?”
Those closely familiar with Texas’s energy market say these power costs are less a bug than a feature of the state’s deregulated system.
While the vast majority of Texans pay a fixed rate for power and get predictable monthly bills, some Texans choose to pay based on the spot price of electricity at any given moment. And as anyone who has taken Econ 101 knows, when supply drops and demand shoots up those prices can reach astronomical heights.
“It has worked really well, as capitalism kind of, in theory, is supposed to, until it doesn’t,” said Anthony Shaw, a power engineer and founder of Progeneration…