What he’s saying is hurting the power providers because they have to pay emergency prices to expensive engineers and purchasing expensive fuel at market rates to provide power to customers at fixed rates who aren’t reducing power is the only way to make them fix their infrastructure.
If we all simply cut back as they are asking then there’s no reason to make the grid more robust as the customer can be the one to bare the pain.
Neither of y’all really make sense.
Texas has a deregulated market. And ERCOT the one calling for conservation and PUC oversee that market. In the market you have the generators(they generate electricity), the transmission companies(they own the lines), and the retail power providers(they buy electricity from the generators and sell it to you over the lines owned by the transmission companies). Y’all are saying hurting the retail power providers will cause change. It will not.
ERCOT is the grid and the body that ensures grid stability. It is also the middle man for payments between the various parties in the market, namely the generators and retail power providers. They are the ones that have been calling for conservation, and can call for blackouts to ensure the grid remains operational. ERCOT doesn’t even give two shits about retail power companies. They mainly exist to benefit the generators.
Which gets back to y’all’s point about retail power companies adapting or dying. Yeah, that’s not going to happen either. ERCOT and the generators are owed what $6-10billion(the number keeps changing) from the Feb. storm. That money is going to come directly from customers via surcharges to all consumers on the ERCOT grid over the next ten years. Atleast that is the proposed plan.
You may think you have a set rate, but once the surcharge is approved(and it’s all but certain to be approved), everyone that has an account for electricity and they are on the ERCOT grid, will be paying that surcharge to cover the costs incurred during the Feb storm(and maybe this week too/later this summer as this seems like it’s not going to be isolated).
The generators made off like bandits in Feb. The plants too expensive to operate were offline and those that were up made a killing. They want their money and they are going to get it. And the way the system is designed, the generators may be paying big bucks for engineers to fix things but that gets passed on because they the rates they charge go up. Like they did to $2000-4000 a MWh on Monday. Again, the generators will get their money and profits, the system in Texas ensures that.
Retail power providers are the small fry that don’t really matter. Which is why you have hundreds of them, many are fly by night companies. They are merely commodity brokers that deal directly to consumers. It doesn’t matter if they go bankrupt. The system ensures the generators still get paid.
Deregulation in Texas was a huge scam that was done to benefit the generators. No one else.