Critics Question Price Spike During Rolling Blackouts [TX]

NBC DFW ^ | SCOTT GORDON

[Dubya]

At least two investigations will examine whether it was extreme weather and high demand -- or perhaps power companies' greed -- that led to last week's rolling blackouts across Texas.

Within a few hours, the price electricity generators charged briefly skyrocketed on Feb. 2 from $50 per MW to $3,000 -- the highest legally allowed.

Some 82 of the state's 550 generating plants were offline, leading to an electricity shortage and forced blackouts that lasted up to 45 minutes.

[Dubya]

On Dec. 1, Texas revamped the way rates are set for wholesale electricity.

Consumer groups say it's so complicated, few really understand it.

"This is the most complex electrical system ever designed," Power said.

[La Lydia]

I thought it also had something to do with Texas’ increasing dependence on windmills.

[crusty old prospector]

It is a good thing we are not connected to Oklahoma.

RECORD EVENT REPORT

NATIONAL WEATHER SERVICE TULSA OK

755 AM CDT THU FEB 10 2011

...ALL TIME RECORD LOW TEMPERATURE SET AT BARTLESVILLE OKLAHOMA...

...ALL TIME RECORD LOW TEMPERATURE SET FOR THE STATE OF OKLAHOMA...

AN ALL TIME RECORD LOW TEMPERATURE OF 28 DEGREES BELOW ZERO WAS SET AT BARTLESVILLE OKLAHOMA THIS MORNING AT 7:19 AM. THE PREVIOUS ALL TIME RECORD LOW WAS 25 BELOW ZERO JANUARY 22ND 1930. THIS SMASHES THE PREVIOUS RECORD FOR THIS DATE OF 13 BELOW ZERO SET IN 1929. THIS ALSO SETS THE ALL TIME RECORD LOW TEMPERATURE FOR THE STATE OF OKLAHOMA. THE PREVIOUS RECORD LOW WAS 27 DEGREES BELOW ZERO SET AT VINITA, OK IN 1905 AND AT WATTS, OK IN 1930. THIS INFORMATION IS PRELIMINARY AND WILL BE INVESTIGATED FURTHER.

[La Lydia]

In Maryland, utility customers pay premium rates when the power goes out. Maryland Pepco customers were forced to endure power outages for day, and in some cases, weeks in the dead of winter. But thanks to their very own Public Service Commission, the company's bill stabilization adjustment system allows Pepco to charge higher rates after an outage to compensate itself for "reduced usage." Pepco's motto: WE SCREW UP, YOU PAY"

I suspect something like this occurred in Texas, too.

[Dubya]

I suspect something like this occurred in Texas, too.

You are right.

[Dubya]

"This is the most complex electrical system ever designed," Power said.

Gee, I wonder who designed it?

[The Great RJ]

Those wind mills which have the highest cost per kilowatt were probably AWOL during the time of highest demand.

[BfloGuy]

allows Pepco to charge higher rates after an outage to compensate itself for "reduced usage."

This is a growing scam foisted on us by our "green" friends in government. This is how, for example, the gubmint convinces utilities to spend money teaching people how to reduce electrical usage through weatherproofing, etc..

It's called "decoupling" rates from usage. It is probably the most anti-capitalist government scheme out there. And after you've weatherproofed your home, you bill stays the same or goes up anyway because the rates no longer reflect your actual consumption.

It's nothing more than a way to get us to cut our energy usage, but pay for it anyway. I'm livid every time I think about it.