Texas Legislature close to approving billions to pay for winter storm financial fallout

[Elderberry]

Texas Tribune by Erin Douglas and Mitchell Ferman May 25, 2021

Several billions of dollars in state-approved financing will be necessary to stabilize the state’s distressed energy market after the winter storm. Texas approves more in finance bailouts for its utilities than any other state.

The February winter storm was one of the most devastating disasters in the state’s history, killing at least 100 people. It was also one of the most expensive because of spikes in wholesale power prices and natural gas prices. Electricity regulators set power prices at the maximum rate — $9,000 per megawatt-hour — for several days in hopes that market dynamics would encourage more electricity to be supplied.

Because the freeze knocked out many of the state’s power generators, electricity companies had to buy what little power was available at that exorbitant rate (the average price for power in 2020 was $22 per megawatt-hour). Natural gas fuel prices also spiked more than 700% during the storm.

More: https://www.texastribune.org/2021/05/25/electricity-market-financing-winter-storm/

[thackney]

...But a package of bills to provide several billions of dollars in financial relief to the state’s electricity and gas market could leave retail electric providers and their customers — mostly commercial real estate companies and small businesses like Bingoland — out of the bailout.

“I see no relief at all for the customers, who did absolutely nothing wrong,” Marcie Zlotnick, a co-founder of two small retail electric businesses, said during a Senate committee hearing on Thursday....

Customers who selected a high risk plan are expecting those of us who bought a lower risk plan, and paid a higher monthly rate, to now pay their bills.

[DefiantMassRINO]

So Texas' electric companies have privatized profits and socialized losses like the banks did in 2008.

[thackney]

So Texas' electric companies have privatized profits and socialized losses like the banks did in 2008.

It is the consumer, not the electric generators, making this request.

Texas generators are separate business entities from the company that deliveries power to the customer.

[IsailedawayfromFR]

Customers who selected a high risk plan are expecting those of us who bought a lower risk plan, and paid a higher monthly rate, to now pay their bills.

Abbott fails us once again by not demanding the legislature reject this.