Re:Clearing price for supplying power to Texas grid –$31.65
by gruez on Sunday February 21, 2021 @08:51AM
(#26213414)
>The price of electric and natural gas skyrocketed during the shortage.
AFAIK the price was capped.
Re:Clearing price for supplying power to Texas grid –$31.65
by oivey on Sunday February 21, 2021 @12:54PM
(#26215487)
For context, the cap is nearly 100x the normal price. In colder states power companies manage to be profitable at around the normal price of electric in Texas. The price of winterization isn’t that high, and a company that did it could have made a year’s worth of profit last week. The cap was very high and did not contribute to the outage.
In your other post you say this is a once in a century event. It really isn’t. This is the 3rd time since 1989 that Texas has had outages due to insufficient winter prep. It’s more like a once in 10 years event.
Re:Clearing price for supplying power to Texas grid –$31.65
by wavefunction on Sunday February 21, 2021 @12:49PM
(#26215452)
Wholesale prices are capped. They contribute to but don't limit the price paid by retail customers.
Re:Clearing price for supplying power to Texas grid –$31.65
by tankenmate on Sunday February 21, 2021 @09:40AM
(#26213724)
there is also another externality, due to perception (regardless of whether it is true) that it affects non rich people more means that it build distrust. trust (and in particular systemic trust, e.g. rule of law) reduces transaction costs; i.e. you can rely on others to do their job properly without having to continually monitor them and build in unnecessary contingencies.
People also find the idea that only the rich can afford to have heat so that the pipes in their walls don’t burst distasteful.