Texas congressman says emergency aid will help Texans pay high energy bills

[thisismadness]

"While I'm trying to get gas and groceries and make sure that my pipes don't explode, the last thing I'm thinking about is a $7,000 bill from my utility company," Upshaw told CNN's Fredricka Whitfield on Saturday.

Local officials in the state, meanwhile, are suggesting Texas should pay for the high bills, with Houston's Democratic mayor and Fort Worth's Republican mayor urging the state to lift the burden off of affected residents.

"For these exorbitant costs, it's not the consumers who should assume that costs ... the bill should go to the state of Texas," Houston Mayor Sylvester Turner told CBS on Sunday.

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Yes, that's the current plan with the federal assistance -- be able to help the homeowners both repair, because we have a lot of water leaks, a lot of water damage, pipes bursting, but also their electricity bills as well," Texas Rep. Michael McCaul told CNN's Dana Bash on "State of the Union" when asked if some of the disaster funds would be used to help residents pay the bills.

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Texas congressman says emergency aid will help Texans pay high energy bills charged after deep freeze - CNNPolitics

Seems real shitty to use disaster relief funds to pay off the insane rates the utility companies have been charging people. That $7000 bill should be ripped the fuck up, not paid in full.

 

[AlgusUnderdunk]

I'm a bit surprised that in Texas, of all places, tarring, feathering, and riding the electricity barons out on a rail isn't up for consideration.

 

[MarioW]

This is the same ridiculous position as on healthcare, where the debate about access to healthcare is framed in terms of access to healthcare insurance as opposed to actually addressing the out of control costs of the US healthcare system.

 

[Angelus Errare]

Hey look, more redistribution of wealth towards the wealthy. Am shocked

 

[JLP101]

Privatize the gains, socialize the losses.

 

[rokkerkory]

Uhhh how about stopping the price gouging assholes

 

[ThreePi]

Maybe instead of asking for socialist handouts they could instead shoot the bills with their guns?

 

[Huncho_Houdini]

Maybe instead of asking for socialist handouts they could instead shoot the bills with their guns?

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Lol

 

[Nothing Loud]

I'm a bit surprised that in Texas, of all places, tarring, feathering, and riding the electricity barons out on a rail isn't up for consideration.

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If you read the rest of the article, you'll find that Houston and Ft Worth's mayors plus other officials have called for the state of Texas to pay this bill, not the residents, and for the energy infrastructure managers to be held accountable, but this thread seems to be focusing on the comments of one Texas rep.

 

[DrForester]

Using Taxpayer money rather than go after the price gougers. Fuck you, Texas.

 

[TheMadTitan]

Yeah, how about we burn all of the bills instead and mandate Texas join the rest of the grid instead. Sounds like a better plan.

 

[kirby_fox]

I'm a bit surprised that in Texas, of all places, tarring, feathering, and riding the electricity barons out on a rail isn't up for consideration.

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"The costs to keep the lights on during this unprecedented and once a lifetime event is much higher and the companies are going to really struggle to not lose money. We're trying to not lose our freedoms in Texas either, unlike those liberals who want us to give up our rights. No one here wants to look like California and forcing us to live without electricity and that's what you'd get under their socialist and radical ideas about what we do with our power grid."

 

[MinerArcaniner]

Maybe instead of asking for socialist handouts they could instead shoot the bills with their guns?

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So much for seceding from the country, eh?

Seriously, though, I'm not surprised. This whole situation was caused by the state government groveling to the private sector under the guise of "Texan independence".

 

[Dennis8K]

Ridiculous. Tax payer money going straight into the ghouls who jacked up the prices.

But who are we kidding? Nothing will change. America has given up fighting corporate greed.

 

[Culex]

This is why those gas company execs were all giddy. They are getting this windfall one way or another.

 

[Sutton Dagger]

I haven't been following this news closely but how does a $7000 electricity bill work? I could have every appliance running 24/7 for months and it wouldn't cost that much?

 

[brawndolicious]

I haven't been following this news closely but how does a $7000 electricity bill work? I could have every appliance running 24/7 for months and it wouldn't cost that much?

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There was a special plan where you agree to letting the rate change from one day to the next based on market pricing (supply/demand). So it went from like $0.05/KWh to $9.00/KWh for the week as energy demand was high and production was low.

The only thing people were really trying to do was run their heaters. Nothing crazy. In a normal year, this market based rate was cheaper but as energy production crashed, the price per KWh shot up.

 

[Trup1aya]

I haven't been following this news closely but how does a $7000 electricity bill work? I could have every appliance running 24/7 for months and it wouldn't cost that much?

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there deregulated grid means "competive" pricing from various suppliers, some of them who charge based on live "supply and demand" economics

so when most of the grid failed, power company's that charge on a sliding scale had rate increases automatically kick in with the spike in demand.

 

[The Albatross]

I haven't been following this news closely but how does a $7000 electricity bill work? I could have every appliance running 24/7 for months and it wouldn't cost that much?

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Texas has unregulated energy delivery rates, and in normal circumstances it's among the cheapest in the country (texas produces the most energy of any state, and they use only domestic/state energy production), but because there's no price controls at all, that means when demand is high and supply is low, the price sky rockets without any limits. And so a regular days use of electricity could run in the thousands as the price per khw has no ceiling

It's totally fucked

 

[Mars]

I haven't been following this news closely but how does a $7000 electricity bill work? I could have every appliance running 24/7 for months and it wouldn't cost that much?

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For most folks getting hit hard with extremely high bills, variable rate power plans.

Edit: fleshed out replies above!

 

[Kinthey]

No one should pay those companies a penny. It's absurd. But I guess the politicians created this problem in the first place

 

[Sutton Dagger]

There was a special plan where you agree to letting the rate change from one day to the next based on market pricing (supply/demand). So it went from like $0.05/KWh to $9.00/KWh for the week as energy demand was high and production was low.

The only thing people were really trying to do was run their heaters. Nothing crazy. In a normal year, this market based rate was cheaper but as energy production crashed, the price per KWh shot up.

Click to shrink...

there deregulated grid means "competive" pricing from various suppliers, some of them who charge based on live "supply and demand" economics

so when most of the grid failed, power company's that charge on a sliding scale had rate increases automatically kick in with the spike in demand.

Click to shrink...

Texas has unregulated energy delivery rates, and in normal circumstances it's among the cheapest in the country (texas produces the most energy of any state, and they use only domestic/state energy production), but because there's no price controls at all, that means when demand is high and supply is low, the price sky rockets without any limits. And so a regular days use of electricity could run in the thousands as the price per khw has no ceiling

It's totally fucked

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Thanks for the info all. Wtf!!!! That shit would never fly here, unregulated delivery rates is one of the worst ideas I've ever heard.

 

[Isilia]

Apparently I'm doing life wrong. I just need to be as scummy as possible and I'll be set.

...As long as you're white anyway.

 

[JustinBailey]

Awful. Please withhold my portion of taxes from assistance to these awful companies.

 

[Logistic]

Interesting info on a nytimes article I read earlier today:

Many of the people who have reported extremely high charges, including Mr. Willoughby, are customers of Griddy, a small company in Houston that provides electricity at wholesale prices, which can quickly change based on supply and demand.

The company passes the wholesale price directly to customers, charging an additional $9.99 monthly fee. Much of the time, the rate is considered affordable. But the model can be risky: Last week, foreseeing a huge jump in wholesale prices, the company encouraged all of its customers — about 29,000 people — to switch to another provider when the storm arrived. But many were unable to do so.

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The feedback from the company explains it was operating exactly as it was designed.

William W. Hogan, considered the architect of the Texas energy market design, said in an interview this past week that the high prices reflected the market performing as it was designed.

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Additional comment on the article

I am a customer of Griddy, and what they have done to make the most affordable electricity is great. They clearly state many times that providing wholesale electricity means that you may have price spikes. So the risk is worth the reward, in my opinion. Saturday and Sunday I haven't had to pay on cent as current wholesale prices are negative. Additionally you are free to switch in Texas at any time so you can mitigate the spikes in the summer and winter storm season. The people who signed up clearly didn't read the terms of signing up. That's not the electric company's fault. I will continue to be a Griddy customer and I thank them for their transparency and product.

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[meowdi gras]

1. "Independent" Texas shits the bed.
2. Is bailed out with taxpayer money.
3. Gives it to the wealthy.

Murica! Texas!

 

[gdt]

I don't want a single fucking cent going to paying those bills. Rip them up.

 

[Lunchbox]

Ridiculous. Tax payer money going straight into the ghouls who jacked up the prices.

But who are we kidding? Nothing will change. America has given up fighting corporate greed.

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Facts

 

[UltimateHigh]

every single electrical bill for this cycle should be ripped up.

 

[Deleted member 2802]

1. "Independent" Texas shits the bed.
2. Is bailed out with taxpayer money.
3. Gives it to the wealthy.

Murica! Texas!

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😼

 

[MegaManTrigger]

Imagine living a world where governments suck the phallus of companies, instead of helping the average person.

 

[Lactose_Intolerant]

Seems like the homeowners signed up for this "service"

Either outlaw the practice or set a kw/h price limit.

 

[samoyed]

Price gougers should be left go out of business. I'm fine if federal aid is directed to households but not to these "businesses".

 

[J-Skee]

I don't understand. Why are the bills so high if the power & water aren't working?

 

[Pineapple Taco]

something something socialism

 

[Dennis8K]

Imagine living a world where governments suck the phallus of companies, instead of helping the average person.

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I don't need to imagine it.

 

[Foffy]

What a fucking abominable country.

 

[Mars]

Seems like the homeowners signed up for this "service"

Either outlaw the practice or set a kw/h price limit.

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Not entirely the case; once a fixed rate plan expires, customers are moved to a variable rate without notification. But yeah, there cases where they sign up and aren't aware or told up front the plan is a variable rate plan.

Not sure of other states but Connecticut flat out banned the practice for residential consumers and Pennsylvania took utilities to court after a similar ordeal.

 

[Man-is-Obsolete]

I don't understand. Why are the bills so high if the power & water aren't working?

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because demand for it was high....

 

[Shyotl]

Why should a state that intentionally segregated its power grid from the rest of the nation to dodge regulation be bailed out by the federal government? These utility companies gambled and lost, but it's the public that has to cover their shortsightedness, like always. Just let the gougers pound sand.

 

[Senator Toadstool]

Texas congressman says emergency aid will help Texans pay high energy bills charged after deep freeze - CNNPolitics

Seems real shitty to use disaster relief funds to pay off the insane rates the utility companies have been charging people. That $7000 bill should be ripped the fuck up, not paid in full.

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something something contract clause. states can't pass a law blowing up the contracts, only congress can

 

[NCR Ranger]

It is so stupid that for many the solution is to have the government pay the high bills instead of the much more sensible solution of telling the price gougers to go pound sand. I guess it wouldn't be 'Merica and/or Texas without looking out for the rich first.

 

[Dennis8K]

This is peak predatory capitalism - price-gouging victims of a natural disaster.

 

[Gernau Morat Gurgeh]

Corporate socialism

 

[zero_suit]

Corporate socialism

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I thought socialism was bad!

 

[Gernau Morat Gurgeh]

I thought socialism was bad!

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Only when it helps the little people

 

[Senator Toadstool]

It is so stupid that for many the solution is to have the government pay the high bills instead of the much more sensible solution of telling the price gougers to go pound sand. I guess it wouldn't be 'Merica and/or Texas without looking out for the rich first.

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They literally can't (texas) or face insurmountable burdens in congress.
The grid should be nationalized (or government owned) and this would be a simple accounting fix.

The fear is the utilities will provide worse service or high costs during normal times if you throw out the congress (which only congress can do. Which is why privately owned utilities shouldn't exist and we should move to a grid which can better adapt to changing weather (residential solar, batteries, etc)

 

[Senator Toadstool]

Corporate socialism

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It's literally not socialism. This is capitalism. Socialism wouldn't have this problem. Giving money isn't socialism.

 

[Gernau Morat Gurgeh]

It's literally not socialism. This is capitalism. Socialism wouldn't have this problem. Giving money isn't socialism.

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Perhaps I shouldnt have been so glib, but what I mean is that under this supposedly capitalist system there are always government handouts for big businesses while they cry about any spending on actual people.

 

[Bisha Monkey]

Lets just put a band aid on top of the structural failures, flaws that will be replicating the same effects in the future, that's the american way.