Comments on: Electric Market Follies: Texas Style

By: Steve

Steve — Thu, 10 Feb 2005 18:20:17 +0000

Walter,

That is just simply mean. ;-)

Robert & Mcgehee,

I agree with Robert for practical purposes while Mcgehee has a valid theoretical point. My guess is the bureaucrats and pols wont be able to resist "fixing the market" and hence will likely cause a problem where having an inter-connection with other states/regions would help. It sure helped in CA (and was also a problem at times) keep the lights on.

By: Walter E. Wallis

Walter E. Wallis — Thu, 10 Feb 2005 17:32:32 +0000

Perhaps California should sent Texas all our regulators?

By: JackLewis.net

JackLewis.net — Thu, 10 Feb 2005 15:06:21 +0000

Recommended reading
Excellent analysis of the economics behind the recent Texas power problems by Steve Verdon at Outside the Beltway....

By: McGehee

McGehee — Thu, 10 Feb 2005 13:39:35 +0000

The grid isolation alone isn't necessarily a problem, if a relatively free market for electricity exists in the state and leads to self-correcting supply. But if the regulators create a problem there the way they did in California, grid isolation will make the bad things worse.

By: Signifying Nothing

Signifying Nothing — Thu, 10 Feb 2005 06:35:08 +0000

Generation deregulation
Steve Verdon has a good post on power supply problems in Texas. I added a few comments, taken from memory after being out of the power industry for several years. Take them for what they're worth. The blog is free,...

By: Robert Prather

Robert Prather — Thu, 10 Feb 2005 06:29:55 +0000

Steve,

I've been out of the power industry for six years now, but, based on what I knew then, Texas has even more problems. Every time I heard about Texas during the deregulation of generation during the 90s, it was always followed with a comment about them not being hooked into the national grid. If still accurate, they have prevented themselves from benefiting from surplus capacity in other states. Extraordinarily dumb, not unlike California limiting their grid operators to the day ahead market and making long-term purchasing agreements illegal.