My husband was in the energy business & this same thing happened in Mass years ago. The problem is these energy supply companies need to have a certain # of kilowatts in forward capacity already bought & not used for such a time like this. Mass made a law so now they have to. The Texas ones didn’t and thought they could just use the windmills to get by... but those froze. Energy is a commodity so they had only a certain amount and to turn it back on they would have paid out the ying yang- they didn’t have enough $$ basically to buy more on the spot market so they just shut it down- released a little here & there. Watch how many energy companies go belly up after this. Remember Enron started the whole deregulation thing... remember the boom boom room? Texas was the first & they haven’t made any laws to protect the consumers.
Can you explain more in a post? Sounds like a documentary worth of data packed into one paragraph! I was wondering if we could relate this to Enron but I don’t really know anything about that scam
Well I believe Enron started the electricity deregulation in Texas- just like when they deregulated the phones & you have different providers now? Well that’s happened with electricity in different states- not all- just a handful. So in a deregulated state there are people that produce the power and then people that sell it. The people that sell it can’t produce it and visa versa. Electricity is a commodity so these companies buy huge loads of promised electricity- a year or two in advance- and sell it- to us the consumers. So you buy a load at say 7 cents a kilowatt for a years contract but then you always gotta buy more & the price fluctuates and your contract might not be a fixed price. Anyways here in the northeast this happened as in Texas where they didn’t have an extra load capacity built in & therefore have to buy what the market is now- like $9000 a kilowatt. They can’t afford to buy more from suppliers so they just don’t supply you with any. Idk if I’m making any sense lol
My husband was in the energy business & this same thing happened in Mass years ago. The problem is these energy supply companies need to have a certain # of kilowatts in forward capacity already bought & not used for such a time like this. Mass made a law so now they have to. The Texas ones didn’t and thought they could just use the windmills to get by... but those froze. Energy is a commodity so they had only a certain amount and to turn it back on they would have paid out the ying yang- they didn’t have enough $$ basically to buy more on the spot market so they just shut it down- released a little here & there. Watch how many energy companies go belly up after this. Remember Enron started the whole deregulation thing... remember the boom boom room? Texas was the first & they haven’t made any laws to protect the consumers.
Can you explain more in a post? Sounds like a documentary worth of data packed into one paragraph! I was wondering if we could relate this to Enron but I don’t really know anything about that scam
Well I believe Enron started the electricity deregulation in Texas- just like when they deregulated the phones & you have different providers now? Well that’s happened with electricity in different states- not all- just a handful. So in a deregulated state there are people that produce the power and then people that sell it. The people that sell it can’t produce it and visa versa. Electricity is a commodity so these companies buy huge loads of promised electricity- a year or two in advance- and sell it- to us the consumers. So you buy a load at say 7 cents a kilowatt for a years contract but then you always gotta buy more & the price fluctuates and your contract might not be a fixed price. Anyways here in the northeast this happened as in Texas where they didn’t have an extra load capacity built in & therefore have to buy what the market is now- like $9000 a kilowatt. They can’t afford to buy more from suppliers so they just don’t supply you with any. Idk if I’m making any sense lol