Since the power went out in Texas, the state’s most prominent Republicans have tried to pin the blame for the crisis on, of all things, a sweeping progressive mobilization to fight poverty, inequality and climate change. “This shows how the Green New Deal would be a deadly deal,” Gov. Greg Abbott of Texas said Wednesday on Fox News. Pointing to snow-covered solar panels, Rick Perry, a former governor who was later an energy secretary for the Trump administration, declared in a tweet “that if we humans want to keep surviving frigid winters, we are going to have to keep burning natural gas — and lots of it — for decades to come.”
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A fateful series of decisions were made in the late-’90s, when the now-defunct, scandal-plagued energy company Enron led a successful push to radically deregulate Texas’s electricity sector. As a result, decisions about the generation and distribution of power were stripped from regulators and, in effect, handed over to private energy companies. Unsurprisingly, these companies prioritized short-term profit over costly investments to maintain the grid and build in redundancies for extreme weather.
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This energy-market free-for-all means that as the snow finally melts, many Texans are discovering that they owe their private electricity providers thousands of dollars — a consequence of leaving pricing to the whims of the market. The $200,000 energy bills some people received, the photos of which went viral online, were, it seems, a mistake. But some bills approaching $10,000 are the result of simple supply and demand in a radically underregulated market. “The last thing an awful lot of people need right now is a higher electric bill,” said Matt Schulz, chief industry analyst with LendingTree. “And that’s unfortunately something a lot of people will get stuck with.” This is bad news for those customers, but great news for shale gas companies like Comstock Resources Inc. On an earnings call last Wednesday, its chief financial officer said, “This week is like hitting the jackpot with some of these incredible prices.”