February 27, 2021 ☼ texas ☼ power-failure ☼ deregulation
Source: NPR - Link
For Texas, it’s looking like a daunting power bill.
The Lone Star State racked up tens of billions of dollars in electricity expenses, as a free-wheeling market design sent prices skyrocketing. It tallied tens of billions more in damage and economic losses from blackouts.
The state could spend years paying down those costs — costs that many experts say were avoidable had Texas taken pre-emptive steps to leave its independent, isolated power system better prepared for this month’s winter storms.
This is what happens when you design a market to give buyers incentive to purchase the lowest cost goods. Corners are cut by the suppliers.