Comment Re:Options (Score 2) 203
I don't live in Texas and am not super familiar with the market. Most (if not all) other states have a wholesale market and a retail market. Local utilities will purchase on the wholesale market (with wild rate swings) and sell retail at fixed prices. This means that, if the spot market goes crazy, utility companies go bankrupt not individuals.
I do live in Texas, and what you've described absolutely does happen here. Some people do buy electricity through deals where the price fluctuates with market prices, but many -- perhaps most? -- just pay the same rate per kWh no matter what. I know I do.
However, my electric company is the City of Austin. Austin can't go broke. Instead, they just raise their prices in the future to make up for the loss.
And even if the electric company is a private company, they can't really be going bankrupt either, and the State of Texas basically bailed them out, and people are still paying fees to cover the money lost back in 2021 with regard to electricity and natural gas.
Texas has laws against price gouging -- where you'll get sued by the Attorney General if you raise your prices even by 50% during an emergency -- but we make it OK for energy prices to jump by a factor of 100, when people don't even know about the price change until it's too late, and the state actually seems to encourage this? Clearly, the people who get rich from this are getting a good return on the politicians they bought!
Either 1) energy prices should not be allowed to jump anywhere near this much in an emergency, or 2) the end-users need to know, *in advance*, that the prices are going up significantly so they can adjust their usage accordingly. (And having the electric company pay the massive extra charge isn't any good either. Perhaps it's OK if the difference is 2x or so for a few days, but 100x? No.)
I do understand that these huge price surges encourage producers to be ready to produce in an emergency, but in practice, it's just a windfall for them and they don't seem to find it to be cost-effective to actually change anything to be extra ready for these emergencies.