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[quote=Anonymous][quote=Anonymous][quote]https://www.msn.com/en-us/weather/topstories/texas...eeze/ar-BB1dOkgd?ocid=msedgntp One lady now faces a 6k power bill, and the disaster isn't over yet
Isn't this price-gouging?[/quote]

I don't understand this. Aren't utility rates regulated? How does this work in Texas?[/quote]

Not in Texas!  The final shock is going to be their utility bills.

The high maximum price is the incentive used in the energy only system to incentivize extra capacity for times like this.  Because Texas, unlike the rest of us, doesnt subsidize capacity or require weatherization that is where the books balance.  The thing is, as this event shows, it doesn't work.  All it does is provide huge profits in times of electrical scarcities.  The idea was that the profit motive would encourage extra capacity in times of need and disaster preparedness.  However, since the timing of emergency needs are unpredictable long term at the same time as capital construction costs are too high means that it doesnt encourage anything unless there's a creative destruction moment.  In other words it doesn't practically provide any incentive.

It's another failed supply side ideological policy that doesn't work long term.[/quote]

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