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Government Power

Last Year's Texas Power Outage Will Now Cost Natural Gas Customers $3.4 Billion (arstechnica.com) 174

"Texans will be paying for the effects of last February's cold snap for decades to come," reports Ars Technica, "as the state's oil and gas regulator approved a plan for natural gas utilities to recover $3.4 billion in debt they incurred during the storm.

"The regulator, the Railroad Commission, is allowing utilities to issue bonds to cover the debt. As a result, ratepayers could see an increase in their bills for the next 30 years." During the winter storm, natural gas prices spiked as cold temperatures drove demand up while also depressing supply... The governor's office knew of the looming shortages days before they happened, yet the preparations they made did little to alter the course of the disaster... Gas sellers made record profits in just a few days, together bringing in as much as $11 billion, about 70-100 times more than normal, based on spot prices at the time. Meanwhile, many Texans suffered through blackouts and bitter cold, and 210 people died, according to the latest estimate from the Texas Department of State Health Services.

In the wake of the storm, many officials have called on utilities and oil and gas companies to winterize their operations...

Texans aren't the only ones whose bills are higher as a result of producers' and utilities' unwillingness to winterize their equipment. Utilities around the country were forced to buy natural gas at significantly higher prices when Texas' markets went haywire as a result of low supply and high demand. Ratepayers as far away as Minnesota will be paying surcharges for years to come after their utilities had to pay $800 million more than expected for natural gas.

The article also includes a quote from Katie Sieben, chairwoman of the Minnesota Public Utility Commission, from an April article in The Washington Post.

"It is maddening and outrageous and completely inexcusable that Texas' lack of sound utility regulation is having this impact on the rest of the country."
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Last Year's Texas Power Outage Will Now Cost Natural Gas Customers $3.4 Billion

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  • by saloomy ( 2817221 ) on Saturday November 13, 2021 @12:39PM (#61984457)
    For your home use, and switch to alternative energy. Fuck the sellers who are charging fees because of their own mismanagement. If I was a consumer, I would convert my home to electrical heating and put in batteries + solar.
    • The best solution is a ground source heat pump [wikipedia.org], although in a mild climate like Texas an air source heat pump [wikipedia.org] would also work reasonably well.

    • Texas is a great place for both solar and wind power. But, you have to make it cold-weather capable.
      • by Moryath ( 553296 ) on Saturday November 13, 2021 @02:13PM (#61984669)

        But, you have to make it cold-weather capable.

        Which is actually trivial (in terms of overall costs) to do, but the inbred republican party in TX are paying dividends out to the oilfield owners who own their souls, so they deliberately sabotage viable alternatives to dead-dinosaur fuels instead.

      • by Moryath ( 553296 ) on Saturday November 13, 2021 @02:15PM (#61984677)

        Case in point: Texas is "a great place for solar" until you realize the republicans put in "access fees" on everything.

        I looked into getting solar on my house the summer before covid. Before the various "access fees" from the republican trash who run this shitty state, I could have locked in a good setup and saved money on electricity.

        After the "access fees" from the republican dumbfucks who do everything they can to sabotage solar? Yeah, it would cost me 25% more per month than I'm paying for grid power currently.

        Never let a republican tell you they support "free markets". They don't, they're just fucking scammers.

        • by hey! ( 33014 ) on Saturday November 13, 2021 @05:07PM (#61985135) Homepage Journal

          I used to do business with local (typically county level) governments all around the country, and Texas was easily the most corrupt. I was at a trade show and there were a bunch of officials from Texas there; usually they didn't come to national meetings but this one was held in an Atlantic City casino. A sleazy salesman I knew landed a whole bunch of contracts by inviting the Texans to a hotel suite which he'd stocked with prostitutes he'd hired for the night. He said it was the best money he'd ever spent. I'd never even heard of anything like that happening before in our industry; I asked him if anyone else used the suite, but he said no, just the guys from Texas.

          Now I don't want to say that everyone who works in Texas government is corrupt. To the degree any agency of government works at all it's because workers in that agency care about doing a good job. I've never seen a state where there weren't outstanding individuals in public service, and that includes Texas. But in some states those individuals have to drag along a lot of dead weight.

        • Are the access fees paid only if you are grid-tied or are they also paid if you are completely disconnected. In the case of the former, customers who use the grid when needed should pay some sort of fee (whether the ones in Texas are reasonable or not I have no idea) since there is a cost that won't be covered by their purchase of electricity. In the latter case it's just a tax.
          • by suutar ( 1860506 )

            I don't know if Texas (well, probably individual cities in Texas) does this, but I've heard of places where not being connected to the grid is illegal (typically a violation of zoning laws that incorporate a common standard that requires external supply) and sufficient reason to get your house condemned.

        • Question: Are those access fees required if you are still hooked to the grid. What if you are gridless so you have no access to the power grid and run just off solar?
    • by Gravis Zero ( 934156 ) on Saturday November 13, 2021 @01:18PM (#61984541)

      If I was a consumer, I would convert my home to electrical heating and put in batteries + solar.

      Interesting because if it were me, I would just move to an area not managed by ERCOT because they would comply with federal regulations which ensure this kind of bullshit doesn't happen.

      • by Moryath ( 553296 ) on Saturday November 13, 2021 @01:32PM (#61984579)
        Believe me, the moment I have an opportunity to NOT live in the shitty-ass taliban state of Tex-Ass, I'm out of here. Fuck this trash state, it's actually worse than inbred-states like Missouri or Mississippi these days.
        • by Aighearach ( 97333 ) on Saturday November 13, 2021 @02:40PM (#61984731)

          That's because people in Missouri and Mississippi know they're backwards. Proud of it, which is disappointing, but not a big deal.

          People sitting on Tex's ass are absolutely convinced that they're a shiniest shit that was ever shat.

      • by ShanghaiBill ( 739463 ) on Saturday November 13, 2021 @01:33PM (#61984583)

        I would just move to an area not managed by ERCOT

        $3.4B is about $120 per person. Moving to avoid a $120 expense is absurd.

        Occasionally paying $120 in surge prices for gas is likely cheaper than the infrastructure expenses needed to avoid the problem.

        • How much is worth to freeze to death? Did you think there weren't fatalities because of these outages?

        • Hate to pop your cornhole dream but Texas will cost you a gallon or two more than $120 if you understand Keynesian economics.

        • Reminder, those fees are also spread out over the next 30 years, any any one person's contribution toward paying this off will likely be a function of their personal electricity usage, with a fair portion being paid off by corporations that use a large percentage of grid electricity.

    • want my money.
      come and take it

  • ...And Texans mock California government...

    • Re: (Score:3, Informative)

      ...And Texans mock California government...

      The 2000-01 California Energy Crisis [wikipedia.org] cost about $40B, more ten times as much.

      How about we compromise and agree to mock both governments?

      • Mock them all you want. What's the problemf?
      • by Moryath ( 553296 ) on Saturday November 13, 2021 @01:36PM (#61984597)

        The 2000-01 California Energy Crisis was caused by Enron [marketwatch.com].

        Or to be 100% clear for those who were still kids back then: it was a TEX-ASS republican shitbag company engaging in market manipulation to deliberately force up prices. [latimes.com]

        There was no actual "energy crisis", it was a result of fraud by corrupt republican party dickholes.

        • Re: (Score:2, Informative)

          by Moryath ( 553296 )
          Speak the truth, and some inbred will mod you "troll." Sad, but that's what Shitdot has become.
        • The Republican farmers in California were very angry about Enron's attempt to manipulate water prices as well, with a subsidiary Azurix. Ie, pump water into the aquifer in wet years, sell it back again in dry years. Never mind that the aquifer itself doesn't respect property boundaries so it was pretty arrogant of them to think they could own the water. But that was Enron through and through; without actually producing or owning resources they insisted in making themselves a middle man seeking rent.

      • by mspohr ( 589790 ) on Saturday November 13, 2021 @01:39PM (#61984607)

        That California "energy crisis" was caused by a Texas company manipulating the market.

        • And it was because of California's regulation failure it happened. Just like it was Texas's failure to regulate power and gas companies. In the case of the texas storm, the list is long and varied. https://www.reuters.com/busine... [reuters.com] Heck one is Australian.
          • by careysub ( 976506 ) on Saturday November 13, 2021 @02:15PM (#61984675)

            And it was because of California's regulation failure it happened.

            That is correct, but lets be honest and accurate here.

            It was Libertarian-inspired lack of appropriate regulation that cause this to happen and the two culprits were Republican governor Pete Wilson, and Republican Senator Jim Brulte who wrote the deregulation bill that created the "free market" that allowed blatant manipulation.

            Now that California is back in the hands of people who believe that government has a regulatory oversight role to play, this market system (which still exists) has the most of the regulation it should have had from the beginning.

            A small hole was revealed summer before last during a record breaking heat event in which CALISO -- the is California (Independent, i.e. private) System Operators, relying on their market-conditions based demand forecasting model (rather than one that relied on weather forecasts) failed to contract for enough power the following day one time. This resulted, in the worst case, a 30 minute power outage in some local areas, even though there was plenty of electricity capacity outside California and ample interconnects to supply it. This hole has been patched now. Of course this nuisance non-crisis got huge play in the media because "California".

            • The more recent hot evening outage was predictable by anyone who knew where to look. California has an occasional pattern where sea breeze fails to develop at the end of a hot day when air conditioning demand peaks. Renewables generation fell to near zero when the sun set and no sea breeze was powering wind farms. The sea breeze failure was visible on model forecast tables a day in advance.
            • That is correct, but lets be honest and accurate here.

              Yes, let's do that.

              It was Libertarian-inspired

              It was libertarian-inspired, but what was implemented was not what the "libertarians" had proposed.

              The California government colluded with the utilities (big donors) to de-regulate the wholesale energy market while putting price controls on the retail side.

              The idea was that deregulation would encourage new generation capacity, causing wholesale prices to fall, but these generators would not be able to offer lower prices to retail customers because of the price controls. So the incumbent

              • by jvkjvk ( 102057 )

                >Then Enron et al. saw an opportunity and pounced, sorta like Robinhood investors and GameStop.

                And by "pounced" you mean criminally lied about fake holdings and off-the-books accounting practices to regulators and investors? Oh, I thought so!

              • by skam240 ( 789197 )

                I think you're splitting hairs at this point. Fact is conservatives got the pole position in California government and used it to deregulate as they very commonly do right along with the bullshit claims of common prosperity you mention in your own post. Of course regulations exist for a reason and their deregulation caused the crisis.

                It's California's Leftist government that the haters love to hate but this crisis was not built of Leftism.

          • Texas-to-California energy sales are an inter-state transaction, regulated by the federal government. I was living in California at the time, and we all were amazed at how slow the federal government was to intervene.

            There was a lot of suspicion because the newly-elected president was a former energy man himself -- and was, in fact, from Texas. One theory had it that the slow action by the (Republican) president was intentional, in an attempt to hurt the political standing of California's (Democrat)
          • Other than Enron, the other problem was that California deregulated utilities for a long time and then later the CPUC was relatively lax with them. California used be quite conservative for a while, and it still is when it comes to many voter initiatives, and there was a core set of laissez-faire idiots intent on deregulation.

      • The supposed "crisis" was caused by market manipulation by a Texas company, you stupid fuckchop.

      • let us compare (Score:5, Informative)

        by aepervius ( 535155 ) on Sunday November 14, 2021 @04:58AM (#61986333)
        2000-01 crisis : market manipulation by private entity greedily trying to get more money. Texas crisis : market decide not winterizing is fine, then BS to socialize the loss while they privatized the profit. If anything BOTH crisis shows that "the free market will provide" is total utter bullshit for something as important as energy/electricity.

        "California had an installed generating capacity of 45 GW. At the time of the blackouts, demand was 28 GW. A demand-supply gap was created by energy companies, mainly Enron, to create an artificial shortage. "

        I will leave that here onto why it is utterly stupid to trust the "free market" for anything societal infrastructure relevant (communication, electricity, medicine) in a functioning society.
        • "According to the Federal Energy Regulatory Commission, the crisis was possible because of legislation instituted in 1996 by the California Legislature (AB 1890) and Governor Pete Wilson that deregulated some aspects of the energy industry." Pete Wilson is a republican.
    • by fermion ( 181285 )
      This is because California fell for the most obvious scam of all time. Kicking California is like mocking your friend for giving money to Nigerian prince. You are doing your other friends a mercy everyone knew Enron was a scam. They built goodwill by giving away money they scammed. I was looking for job about a year before bankruptcy and everyone told me to stay away. And remember, California was and still is a petro state. They should know better.
      • by skam240 ( 789197 )

        You people slay me. The most prosperous state in the union by a degree so significant we rank amongst the wealthiest first world nations all on our own and you dimwits act like we're a failed state.

        California, not prefect but it contributes far more to American prosperity then any state you live in.

        California was and still is a petro state.

        Hahaha, if you want a petro state go to Texas. While we produce a fuck ton of oil it's such a small percentage of our overall economy to call us a petro state is to just confirm your status as a dimwit.

    • by HiThere ( 15173 )

      To be fair there's lots of ways that the California government deserves to be mocked. When the state was running a big surplus they allowed a bunch of scammers to steal it. (This particular time was well before the Enron event.)

  • by HotNeedleOfInquiry ( 598897 ) on Saturday November 13, 2021 @12:46PM (#61984473)
    How California felt being ass-raped by Enron.
    • Alternate take: energy prices in Texas were evidently too low to provide the level of availability that people demand. If they want to add another 9 or two of reliability, it's going to cost money for weatherproofing. So, this is how that happens.

      Just like Californians suing PG&E over fires. OK, but obviously the judgment and the costs of increased maintenance are ultimately coming from higher rates, a better service costs more to provide.

      • You'd have a point if the C suite wasn't pouring money into their pockets instead of giving a shit about what "the people demanded".

        You can't apply free market ideology to a monopoly. It will never, ever work because the monopoly has no reason to fear losing customers.

  • by rsilvergun ( 571051 ) on Saturday November 13, 2021 @12:55PM (#61984485)
    with the blessing of the government? Oh wait, they're not really private. It's just more "privatize the profits, socialize the losses".
    • with the blessing of the government? Oh wait, they're not really private. It's just more "privatize the profits, socialize the losses".

      Stop it. Just stop it. This is how captialism works. Companies screw up and the plebs pay.

      Under no circumstances should those responsible for failure be held accountable. That's the capitalist way.

      • Re: (Score:3, Insightful)

        by mspohr ( 589790 )

        Texas is our very own fascist third world country.
        Great for capitalists... not so great for everyone else.

  • Texas gas producers could have winterized their equipment for a once in a century event. Minnesota gas consumers could have reserved most of their gas supply directly from reliable producers rather than depend so much on the spot market as well.

    • by Dan667 ( 564390 )
      that would be ok if they ate the loses and nobody died. But they are not. And. it is inexcusable how the utilities are being run in Texas and they need to winterize their operations now. With global warming I think there is a good chance that this will not be a one in a hundred years storm. It could very well start happening regularly.
      • It will not. They happen about once every 10 years. There was one in 2011, 2001 or 02, and I recall going to a conference in the late 80's in Austin. We arrived at the airport and were shuttled to a nearby hotel. Conference was cancelled and we were stuck in the hotel for a few days. But still, winterization is not as easy as it sounds. Summer heat requires high levels of ventilation to keep the equipment from overheating. Problem is the once in a decade cold winter. I'm sure it can and should be done, but
        • Re:Shit happens (Score:4, Informative)

          by careysub ( 976506 ) on Saturday November 13, 2021 @02:33PM (#61984711)

          It will not. They happen about once every 10 years. There was one in 2011, 2001 or 02, and I recall going to a conference in the late 80's in Austin.

          But this time they have finally learned their lesson and are working on fixing the problem!

          Ba-da-BOOM. Rim shot.

          But seriously folks, from the article:

          But facilities have to voluntarily submit forms declaring that they're critical infrastructure, and the regulator says that the law includes a loophole that allows gas producers, for $150, to file for an exemption from winterizing wellheads.

          Gas company execs and investors sneeze that kind of money into their hankies. And all they really have to do to evade the law is... absolutely nothing.

          • Re:Shit happens (Score:4, Interesting)

            by stabiesoft ( 733417 ) on Saturday November 13, 2021 @08:42PM (#61985553) Homepage
            And Austin still does not do proper tree trimming either. Hey I *lived* the outage. I was out from Monday thru Saturday. 105 Effin hours. Monday evening thru wed evening was ERCOT/state grid. But after that it was all Austin and their lack of tree trimming. So about 1/2 of my outage was state and 1/2 was Austin. I spoke to the lineman who replaced the fuse on the pole on saturday. I was amazed after a week of almost no sleep and freezing he was still polite. He can't even afford to live in Austin anymore. The city stopped providing sleeping quarters for these guys too, so guess what, sleep in your truck. I'm pissed at the state for their part, but I'd like to take an ax to the morons at council for their part. And yes it is the city council. Austin energy hoovers up money for city purposes instead of doing maintenance on the system. Oh and I was here for the 01 and 11 failures. Both were ice on trees overhanging poles causing shorts. In 01 outage I was out for 3 days. And none, zero of that was ERCOT. You'd think the city would learn eh?
    • Minnesota gas consumers could have reserved most of their gas supply directly from reliable producers rather than depend so much on the spot market as well.

      Because a spike in spot prices doesn't have any effect on future prices.

    • Except it’s not once in a century. It happened before in 2011 and in 1989. They learned nothing and it’s guaranteed to happen again.

  • Republicans... (Score:4, Insightful)

    by Dog-Cow ( 21281 ) on Saturday November 13, 2021 @12:59PM (#61984499)

    The same government which has no problem killing 210 of its residents also allows bounty hunting on women seeking abortions. Truly, republicans only care about human life before it's born.

    • Re: (Score:3, Interesting)

      by Ol Olsoc ( 1175323 )

      The same government which has no problem killing 210 of its residents also allows bounty hunting on women seeking abortions. Truly, republicans only care about human life before it's born.

      Speak the truth, and get modded as flamebait. Which is kinda funny, because your entire post has not one thing that is false.

      I think maybe Texans don't like having their inhumanity and failure exposed. Pay the man Texas.

  • Maybe supply and demand and profits have no place in necessities? This is ridiculous; 210 people died and all the utility companies care about are making a few billion more dollars on the surge pricing they charged for fuel. Fuck Texas.

    • by Ol Olsoc ( 1175323 ) on Saturday November 13, 2021 @01:26PM (#61984557)

      Maybe supply and demand and profits have no place in necessities? This is ridiculous; 210 people died and all the utility companies care about are making a few billion more dollars on the surge pricing they charged for fuel. Fuck Texas.

      I think all the talk by Texans wanting to secede needs to be countered. I say we give Texas back to Mexico.

  • So much winning (Score:3, Interesting)

    by quonset ( 4839537 ) on Saturday November 13, 2021 @01:14PM (#61984531)

    It's always amusing when we hear the phrase, "Don't mess with Texas" when one considers how much messing Republicans do in Texas. Between fleeing the state [nymag.com] when things get a little chilly, letting hundreds freeze to death [houstonchronicle.com], to all but prohibiting companies from spending money [texastribune.org] to keep the lights on, to going out of their way to kill as many people as possible [imgur.com] by outright prohibiting medical science principles [texastribune.org] from being implemented, to cancel culture and book burning [nbcnews.com] because the children either need to be protected from reality or prevented from reading about history, it's a wonder Texas isn't a third world shithole by now.

  • by Jack9 ( 11421 ) on Saturday November 13, 2021 @01:14PM (#61984533)

    Anyone who is a subsidiary of, invested in, or uses the same infrastructure as those utilities are impacted as well.

    People have seen their rates triple in the Fargo area.
    A case of capitalist corporate inequity in action.
    When the company is profitable, corporations pay out bonuses.
    When the company loses money, the customers get to pay for it.

  • by hdyoung ( 5182939 ) on Saturday November 13, 2021 @01:41PM (#61984611)
    Than the socialism on the other end of the spectrum. The good people of texas deserve every ounce of economic pain that their choices create. Of course , somehow they will manage to blame others.
    • Than the socialism on the other end of the spectrum. The good people of texas deserve every ounce of economic pain that their choices create. Of course , somehow they will manage to blame others.

      How in the heck is extreme deregulation and socialism on the same axis? Do you know what socialism is? Do you seriously think socialism is ... government regulations??

      Do you know how much of America's, how much of TEXAS's power is provided by electric coops? Do you know what an electric coop is? They're nonprofit, member owned, democratically run organizations. Most of them can be traced straight back to FDR's New Deal, the Rural Electrification Administration. You might call them socialist.

      Industry r

  • Time machines (Score:3, Insightful)

    by RightwingNutjob ( 1302813 ) on Saturday November 13, 2021 @01:48PM (#61984635)

    Texas outages occured in February of 2021.

    Guess what year it is right now when this story was posted.

    Or do we refer to things that happened this morning as having happened yesterday?

  • https://www.ksdk.com/article/n... [ksdk.com]

    Spire, the natural gas provider for the area, is sending letters out to everyone saying their gas might be cut off as of December 13th. - if they can't get an extension on a temporary permit to keep using a natural gas line that the government wants to shut off, over a dispute about it running through farmland.

    • Gotta love Slashdoters that are all about property rights until those interfere with a large corporation's profits.

    • by HiThere ( 15173 )

      I believe (without checking) that the gas company is portraying the dispute as you say. This doesn't mean I believe it is an accurate portrayal. Determining that would require a lot more work than I feel like putting into it.

      But when one party of a dispute is soliciting a political reaction through a public communication, I tend to doubt that their description of what's happening is correct.

  • That's not a lot.

  • So, we have both of the extremes.

    Where Texans pay "free market" rates during the storm, while Californians subsidize and control PG&E all the time. (Without CPUC approval, they cannot almost tie their shoes).

    We make sure the "shareholders" are always compensated well in each case, and have the public handle the burdens. The good thing? Taxans pay very cheap rates 9/10 years, and extortion in the 10th, while us Californians have a fixed rate of 4x the national average.

As you will see, I told them, in no uncertain terms, to see Figure one. -- Dave "First Strike" Pare

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