What Went Wrong With Texas’s Main Electric Grid and Could It Have Been Prevented? (homes, buyer)

[kwr]

This is one of the most balanced and insightful articles I’ve read. I did not know that prior to last week, all 254 counties have never been under a winter storm warning at the same time. I also did not know that Texas homes are typically designed to push heat out, not keep it opposite of northern homes. Lastly, I now understand why power failures are rare in the summer heat. “On the hottest summer day you can imagine, say it’s 105 degrees outside, and you’re trying to keep your home at 75 degrees. That’s a 30-degree difference. If it’s 10 degrees outside and you’re trying to keep your home at 70 degrees, that’s a 60-degree difference.”

http://www-texasmonthly-com.cdn.ampp...prevented/amp/

[BOORGONG]

Story about a guy who was hit for 16 grand for the past two weeks usage.

What are the consumer protection laws in Texas for this sort of thing to even be an issue?



https://www.nytimes.com/2021/02/20/u...ric-bills.html

[WRM20]

Originally Posted by BOORGONG

Story about a guy who was hit for 16 grand for the past two weeks usage.

What are the consumer protection laws in Texas for this sort of thing to even be an issue?



https://www.nytimes.com/2021/02/20/u...ric-bills.html

The people in the story seemed to have signed up for Griddy, a provider that charges wholesale rates. The Public Utilities Commission ordered prices to jump to the $9000/MWh max, which is $9/kwh. I would never sign up for a plan like that, even if the savings are a few hundred dollars per year when there are no issues. Any plan without a cap is going to be bad at some point. Those folk sknew about the risk of spikes, an dalso allowed Griddy to draft their bank accounts daily.

[oceangaia]

Originally Posted by WRM20

The people in the story seemed to have signed up for Griddy, a provider that charges wholesale rates. The Public Utilities Commission ordered prices to jump to the $9000/MWh max, which is $9/kwh. I would never sign up for a plan like that, even if the savings are a few hundred dollars per year when there are no issues. Any plan without a cap is going to be bad at some point. Those folk sknew about the risk of spikes, an dalso allowed Griddy to draft their bank accounts daily.

It shouldn't be allowed to happen. If average prices is 0.11/kwh then the cap should be around .30/kwh. Certainly not $9. What other product do we buy where we commit to buy at whatever price the provider decides to charge? If you had sold a bottle of water or a gallon of gas for $50 last week you would be prosecuted under anti-gouging laws. It shows that PUCT looks out for the providers not the consumers.

[kreeyax]

Originally Posted by oceangaia

It shouldn't be allowed to happen. If average prices is 0.11/kwh then the cap should be around .30/kwh. Certainly not $9. What other product do we buy where we commit to buy at whatever price the provider decides to charge? If you had sold a bottle of water or a gallon of gas for $50 last week you would be prosecuted under anti-gouging laws. It shows that PUCT looks out for the providers not the consumers.

You agree to it when you sign up, it's right there in your terms of service:

You can view the LMP price of electricity in real-time in the Griddy app at any time. The price ranges from below 0.0¢/kWh - $9/kWh, which is the market cap.

https://www.griddy.com/texas/terms-of-service-agreement

People really need to understand the risks when signing up for variable rate plans of any kind.

[oceangaia]

Originally Posted by kreeyax

You agree to it when you sign up, it's right there in your terms of service:

https://www.griddy.com/texas/terms-of-service-agreement

People really need to understand the risks when signing up for variable rate plans of any kind.

I know that. What I said is it shouldn't be allowed to happen. My opinion.

[Dopo]

Originally Posted by kwr

I also did not know that Texas homes are typically designed to push heat out, not keep it opposite of northern homes. Lastly, I now understand why power failures are rare in the summer heat. “On the hottest summer day you can

Sounds like you don’t know anything about “conservation of energy”

Are you telling me that coolers have to be designed for either hot or cold food?

[astrohip]

Originally Posted by BOORGONG

Story about a guy who was hit for 16 grand for the past two weeks usage.

What are the consumer protection laws in Texas for this sort of thing to even be an issue?

Originally Posted by oceangaia

I know that. What I said is it shouldn't be allowed to happen. My opinion.

It absolutely should be allowed to happen. These people signed up for a "market rate" plan,and it told them exactly what could happen. It even happened exactly like this a couple years ago, in August 2018 (maybe 2019?), when it got so hot, the state grid went to market pricing, just like last week. People on Griddy had huge bills.

It will always happen when you don't use a fixed rate (or limited variable rate) plan. Remember, Griddy users had really low prices before this, when most of us were still paying our typical .12 cents or so. They took advantage of the low prices, so they have to pay when they are high prices.

Originally Posted by oceangaia

It shouldn't be allowed to happen. If average prices is 0.11/kwh then the cap should be around .30/kwh. Certainly not $9. What other product do we buy where we commit to buy at whatever price the provider decides to charge? If you had sold a bottle of water or a gallon of gas for $50 last week you would be prosecuted under anti-gouging laws. It shows that PUCT looks out for the providers not the consumers.

You don't understand how Griddy works. The cap is $9Kwh. The tell you that going in. Gouging is different. That's when you take a product where the cost hasn't changed, and jack up the price to make money during an emergency. In this case, the cost DID go up.

[LonghornHotspur]

Originally Posted by astrohip

It absolutely should be allowed to happen. These people signed up for a "market rate" plan,and it told them exactly what could happen. It even happened exactly like this a couple years ago, in August 2018 (maybe 2019?), when it got so hot, the state grid went to market pricing, just like last week. People on Griddy had huge bills.

It will always happen when you don't use a fixed rate (or limited variable rate) plan. Remember, Griddy users had really low prices before this, when most of us were still paying our typical .12 cents or so. They took advantage of the low prices, so they have to pay when they are high prices.




You don't understand how Griddy works. The cap is $9Kwh. The tell you that going in. Gouging is different. That's when you take a product where the cost hasn't changed, and jack up the price to make money during an emergency. In this case, the cost DID go up.

100% this. No one forced Griddy users into this plan, they could have signed up for a fixed plan an paid 9c/ KWh like the rest of us, round the clock.

I got so tired of hearing Griddy users brag on social media about their low bills (usually in low demand months like October or April).....there is a term for this in risk management: Picking up pennies in front of a bulldozer.

PLUS, IF a Griddy user got a massive bill last week, it means they had power. Otherwise their usage would be 0 KWh. As someone who shivered through 54 hours in the cold/ dark, I have little sympathy. Caveat Emptor. Buyer Beware.

[astrohip]

One thing that should be changed... plans like Griddy should be prohibited. There is no reason someone should use or need a plan like this. It's cutting-edge capitalism, with no safety net. While I don't believe in the nanny state, I do think there are things that should not be allowed, for the public good.

Having said that, as my dad told me many a time... "you dance with the one that brung you".

Originally Posted by LonghornHotspur

there is a term for this in risk management: Picking up pennies in front of a bulldozer.

Love this!