The Power Is Back On In Texas. The Recovery Won’t Come Cheap.

February 27, 2021 ☼ texaspower-failurederegulation

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.