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me asked in Politics & GovernmentGovernment · 2 months ago

What is the explanation to some people in Texas suddenly getting $10,000, $14,000, $17,000 energy bills? They call it variable rate?

Who allowed this to be possible?

Update:

Oh, so the energy company is guaranteed certain revenues and if they could not provide power to a lot of people, those who did not lose power had to pay for everyone? Sounds crazy?  Who even thinks of this kind of system?  Obviously its not normal since its not used anywhere else in the USA nor probably anywhere else on earth.

11 Answers

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  • Anonymous
    2 months ago

    The energy companies are big crooks?

  • Archer
    Lv 7
    2 months ago

    Gouging is common when situations like this occur. 

  • ?
    Lv 7
    2 months ago

    Republicans in Texas turned over everything to companies for profit for a bit of donations. The constituents are now being taken to the cleaners. They will remember come election time. 

  • Jeff D
    Lv 7
    2 months ago

    Texas, like some states, has deregulated their electricity market which means consumers can shop around and buy electricity from any company on the grid.

    Some consumers signed up for power from companies that buy electricity on the wholesale market.  These wholesalers don't generate their own electricity but instead buy power from other producers.  Since electricity cannot be stored (at least not economically), producers have to either sell what they can't use or else shut down power plants.  In "normal" times, that means wholesale power companies can often buy power at below-market rates and provide cheaper power to their customers.  However, when power is scarce, like it is now in Texas, wholesalers may have to pay through the nose for power (as do their customers).

    These customers knew that they were buying power from a wholesaler and that their rates could fluctuate wildly depending on the market.  They obviously didn't complain when their bills were lower than their neighbors'.  Now, of course, they're upset; but it was all in the contracts they signed.

    Buying power from a wholesaler is not for everyone.  You need to understand both the risks as well as the benefits.

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  • ?
    Lv 7
    2 months ago

    It's called "deregulation," and "small government." It's been part of the Republican mantra for decades. 

  • 2 months ago

    they volunteered.  in the example cited in the press, the lady's regular February bill was $35.  that's less than half of my lowest month's bill.  so she's been 'saving' over $500 a year for we don't know how long -- at the risk of getting, in essence, an unlimited bill unless she voluntarily turns the power off when prices are high.  Her decision -- her bill, imho.

  • 2 months ago

    Utility rate cases have government authorized variables such as a "fuel adjustment clause". Where utilities, who mostly do not own their own generation anymore, and have to purchase it on the open market can pass a certain amount of the changing costs of energy on to the consumer. Or, are mandated to refund savings to them if the market changes in a positive direction. 

    It complies with FERC regs. And the "F" in FERC stands for "Federal". It is not an invention of the utilities in the least. 

  • Mark
    Lv 5
    2 months ago

    Unfettered capitalism.  Makes sense why many places put some restrictions on nonsense like this.

  • Anonymous
    2 months ago

    They are paying the bills of those who lost power.

  • Anonymous
    2 months ago

    THAT'S CAPITALISM, BABY.

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