21 February 2021 - Texas electricity

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Powerless in Texas

Hmm, when Texas electricity generation breaks down so there’s not enough power for everyone, the market price goes through the roof and gets charged to consumers. Nice incentive system if you can get it--Giffen electricity, hook up a car battery to the grid and make your fortune, registered market participants only, please. This is planet Earth, so I doubt any market exists where people pay less for what is less valuable, such as flaky electricity.

clue:

Measure provider reliability over, say, five years, and count that into what they’re paid. The average price should be higher, since reliability costs, but after any big problem the losers will be paid less for a long time.

give me a clue so sweet and true

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