The Texas Blackout and the Politics of Price Making
As has been widely reported over the past week, some Texas electricity customers are now facing astronomically high electricity bills as a result of the recent power grid crisis. Under the Texas system, which is as close to a fully deregulated system of electricity provisioning as we have in the U.S., retail customers are allowed …CONTINUE READING
Texas has the most wind power in the country and is rapidly building solar. How did that happen?
People are often surprised to learn that Texas is the national leader in wind power, with the twice the generating capacity of any other state. On one notable night in December of 2015, the state got 45% of its power from wind, though the year-round average was only about 10%. In July of this year, the …CONTINUE READING
This is one setting where “deregulation” is a lot more complicated than regulation.
You might think that deregulation means sweeping away regulations, which ought to make the law much simpler. But the opposite is true in the electricity sphere. The regulatory system in states taking the traditional fixed-price approach is actually much easier to understand than the so-called deregulation method. Instead of saying “deregulation” it would be better …CONTINUE READING