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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][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]

In Texas, they can pick their energy provider.  The energy providers buy in bulk from the energy generators that run the power plants and wind mills then resell it to customers for a mark-up.  Usually there's a set per kw/h price but it varies by provider.  I used to live in Texas and still have family there.  Griddy is a provider that, for a nominal fee, passes on the actual cost of the electricity to the customers.  While most utilities would have that per kw/h allowable charge and would sort of even it out over the course of the year, Griddy literally exposes the customer to the full charge.  These people picked Griddy in hopes that they'd be able to save a lot of money on power by using very little power during expensive times (generally the day during the summer) and more during the off times.  Now there's more demand for electricity than generation and the per kw/h rate is high to entice electricity generators to provide additional power.  So no there's no regulation and no this type of "utility" shouldn't actually be allowed.  Sometimes regulation is there to protect you from yourself.  Heat during a sub-zero winter event isn't the kind of thing that should be subject to market forces like a used car.  Heat in the winter, A/C in extreme temperatures, and water (along with other basic utilities) are fundamental human rights and needed to live.  As such, "Griddy" would not even be allowed to operate in most states.  At this point, these people either have to shut off the power to their entire home from the breaker box or risk bankrupting themselves.  
[/quote]
Hey, gambling on electric rates like it's a craps table is apparently freedom in Texas.

However, Griddy telling their customers to cancel their accounts as soon as a price spike hits?  That's probably illegal.   The fact that a price spike would someday hit is entirely forseeable, and they don't have the cash reserves to pay their suppliers.

Regrettably, nobody will go to jail.  They will end up in bankruptcy.  It's possible the consumers will still end up on the hook for the bills though, as the accounts receivable will get handed off to debt collectors.  Or maybe Texas will do the very un-Texan thing and bail them out.[/quote]

Apparently no other provider would take on new customers during the emergency so those customers were stuck with Griddy which is why they're being charged $1,000 a day for the pleasure of not freezing to death.[/quote]

The company knows that the Feds will pay those bills [/quote]

Will they?  I mean, the state grid isn't regulated by the federal government.  If the government pays those bills then they should be able to regulate Griddy.[/quote]

Sometimes people make bad decisions and need to be bailed out of the consequences of their actions, when those consequences are too dire.

We don't need to stop bailing out people and companies. We need to tie bailouts to changes.

Massive market crash, and your bank can't survive? Tie bailout to increased federal regulation.
Major hit to airline industries, who poured gains into shareholders' pocket instead of emergency reserve? Tie bailout to increased federal regulation.
Giant failure of your state's attempt to run a power system on its own and by betting on emergencies not happening, so you don't need to carry reserves? Tie bailout to federal regulation.

I am really worried about the lives of Texans. This is ghastly, from the reports. They need help. Insofar as people were gambling and saying they were taking on the risk -- but not actually expecting to pay the price, if they lost that gamble -- something needs to be done so that this does not happen again.[/quote]

Eh, the state can bail them out.  They don't want the feds involved in their power system, so the feds shouldn't insert themselves.[/quote]

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