“The answer to ensuring a reliable and affordable supply of electricity in Texas is not more subsidies, it is less subsidies. It is getting politicians out of the electricity business.” (Bill Peacock, below)

“The conundrum is that the greater the overall share of renewables in the energy mix, the more customers will have to spend on these largely redundant backups.” (Financial Times, below)

Economists have warned against central planning where a government monopoly is invoked and decisions are made from the center. Free-market analysts also long warned Texas that the government-enabled takeover of the grid with wind and solar (dilute, intermittent all) would cripple the ability of the reliables (gas-fired, coal-fired, and nuclear) to make the grid stable and secure, short of ‘Acts of God.’

But Acts of Political Man won out, and the Great Texas Blackout of February 2021 happened.…

Who should manage and be accountable for electricity in Texas? Politicians and bureaucrats with special interests everywhere? Or corporations with their own capital on the line?

In light of the second anniversary of the Texas Power Crisis of February 2021 (see yesterday), the answer would seem obvious. Grade A corporations, with the legal responsibility to customers, not politicians.

I was reminded of this when I read a Fox News story (February 7, 2023), “Texas State Senator Arrested for Drunk Driving.” Charles Schwertner, a Republican, “was set to preside over a Senate committee meeting at 11 a.m. regarding Texas’ power grid and recent winter outages.”

Another news account stated:

Schwertner, who leads the Senate’s Business and Commerce Committee, was expected at the Capitol at 11 a.m.

“Although many may think the New England region is immune to an energy crisis past summer, winter peak demand is the issue.”

“New Englanders are largely unaware that the light at the end of the clean energy transition tunnel is not a train, it’s a blackout.”

Europe is facing an existential crisis – having sufficient affordable heat and electricity this winter for its populations. People are not only suffering ahead of winter’s arrival, but the likelihood of people dying because of this crisis is growing.

A similar challenge is being faced in many U.S. power markets. Can the worst of the potential outcomes be avoided, or are we on a path that will only worsen for our residents?

Warnings …

In May of this year, Federal Energy Regulatory Commission (FERC) commissioner Mark Christie said the country was “headed for a reliability crisis.”…

“The solution to keeping the lights on in Texas is … to stop politicians and regulators from micromanaging the Texas energy market. Texas politicians could do this by ending renewable energy subsidies in the state and making renewable companies pay for the costs they impose on the rest of us from their federal subsidies.”

As everyone knows, Texas had the worst blackout in its history during the winter of 2021, when 10 million Texans went without power and 12 million without water. After the Texas Legislature passed a number of bills in response, Texas Gov. Greg Abbott proclaimed, “Bottom line is that everything that needed to be done was done to fix the power grid in Texas.”

At least until this summer, that is, when in May electricity prices skyrocketed in response to generation shortages as the state’s grid regulator ERCOT (Electric Reliability Council of Texas) asked Texans “to conserve power when they can by setting their thermostats to 78-degrees or above and avoiding the usage of large appliances (such as dishwashers, washers and dryers).”…