Who should pay to fix the electric grid?

Who should pay to fix the electric grid?
Tim McDonnell
·8 min read

A record-setting winter storm left many Texas households without power for days last week—and left those who did manage to get power stuck dividing a $50 billion electric bill, the product of a wild upward swing in wholesale power prices. This is the gamble at the heart of a deregulated electricity market, in which companies compete to produce and sell electricity, as opposed to a monopoly system with rates fixed by regulators. The Texas example shows how ratepayers can be left holding the bag when that calculus doesn’t, or can’t, account for increasingly erratic extreme weather events.