Texas in Crisis

[Worldtraveller]

All the dems fault!

 

[lpetrich]

Author Naomi Klein continues,

Large-scale shocks — natural disasters, economic collapse, terrorist attacks — become ideal moments to smuggle in unpopular free-market policies that tend to enrich elites at everyone else’s expense. Crucially, the shock doctrine is not about solving underlying drivers of crises: It’s about exploiting those crises to ram through your wish list even if it exacerbates the crisis.

To explain this phenomenon, I often quote a guru of the free market revolution, the late economist Milton Friedman. In 1982, he wrote about what he saw as the mission of right-wing economists like him: “Only a crisis — actual or perceived — produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable.”

"Never let a crisis go to waste"

NK thinks that Gov. Abbott is running scared at the prospect of a Green New Deal, "which promises to create millions of union jobs building out shock-resilient green energy infrastructure, transit and affordable housing."

All that Texas’s Republicans have to offer, in contrast, is continued oil and gas dependence — driving more climate disruption — alongside more privatizations and cuts to public services to pay for their state’s mess, which we can expect them to push in the weeks and months ahead.

Will it work? Unlike when the Republican Party began deploying the shock doctrine, its free-market playbook is no longer novel. It has been tried and repeatedly tested: by the pandemic, by spiraling hunger and joblessness, by extreme weather. And it is failing all of those tests — so much so that even the most ardent cheerleaders of deregulation now point to Texas’s energy grid as a cautionary tale. A recent article in the Wall Street Journal, for instance, called the deregulation of Texas’s energy system “a fundamental flaw.”

In short, Republican ideas are no longer lying around — they are lying in ruin. Small government is simply no match for this era of big, interlocking problems. Moreover, for the first time since Margaret Thatcher, Britain’s former prime minister, declared that “there is no alternative” to leaving our fates to the market, progressives are ready with a host of problem-solving plans. The big question is whether the Democrats who hold power in Washington will have the courage to implement them.

I'm reluctant to conclude that Gilded Age II has ended. But it has certainly been battered by a lot of crises, with no hint of how to solve them within its dominant political, economic, and social paradigm. Donald Trump's Presidency, the coronavirus pandemic, and now the Texas great freeze are only the latest of them.

Crises have produced political upheavals over US history, and I think that we are headed for one.

Slaveowner overreach led to the Civil War and the destruction of slave-plantation society.

The industrialization of the first Gilded Age wasn't working out for many people, and that led to the Progressive Era.

The Great Depression was not ended by staying within the capitalist paradigms of the Roaring Twenties. That led to the New Deal.

The New Deal itself had trouble in the 1970's, with stagflation and the New Left vs. organized labor. That led to Reaganism and Gilded Age II. Across the Atlantic was Thatcherism, something similar.

 

[lpetrich]

The Washington Post on Twitter: "Some Texans got electric bills up to $17,000 after the storm. How does that happen? (link)" / Twitter
noting
Why are Texas electric bills high? Prices surge after winter storms. - The Washington Post

“Everyone in Texas is about deregulation, and Griddy as a wholesale electricity provider is the most deregulated you can get,” said Nicholas Milazzo, who received a $3,000 bill. “And this just goes to show why regulation is important, because, sure, in the short term it’s great, but then situations like this arise where it just gets out of control.”

People with exorbitant bills have demanded solutions. Texas Attorney General Ken Paxton (R) announced that he is opening an investigation of the power failures, including the high prices.

Alexandria Ocasio-Cortez on Twitter: "Heat in winter and running water should not be privileged commodities for the wealthy.

In a modern society, they should be rights. And we will have to fight for these rights as climate change gets worse.

That means standing up to climate crisis profiteers to protect the public." / Twitter

 

[lpetrich]

Houston Chronicle on Instagram: “U.S. Rep. Alexandria Ocasio-Cortez (NY-14) visited Houston…”

U.S. Rep. Alexandria Ocasio-Cortez (NY-14) visited Houston at the invitation of fellow congresswoman Sylvia Garcia (TX-29) on Saturday, February 20, 2021 as Houston defrosts from a winter storm earlier that started earlier in the week. Ocasio-Cortez raised more than $3Million for Texas relief in less than a week. She and Rep. Garcia were joined by other representatives as they visited the Houston Food Bank and toured homes in Garcia’s district that were damaged by the storm. (Photos by @egconley / Houston Chronicle) #aoc #winterstormuri #winterfreeze #houstonweather #eastend

Alexandria Ocasio-Cortez on Twitter: "One last update (I think!): We just hit $5 million raised for Texans across the state.

Thank you ALL for your collective action when people need it most.

Charity can’t replace policy, but solidarity is how we’ll face climate change and build a better world.

Thank you (link)" / Twitter

With this response:
ShaziaJ on Twitter: "@AOC (pic link)" / Twitter
The picture:

• AOC: raises millions in aid
• Beto O'Rourke: organizes help for seniors
• Joaquin Castro: mobilizes food & water drive
• Ted Cruz: flees to Cancún

 

[lpetrich]

Alexandria Ocasio-Cortez on Twitter: "From the Texas Freeze & Midwest floods to California wildfires & Hurricane María, the climate crisis impacts us all.

We must come together and act boldly to stem climate change, AND we can create 20 million+ jobs in the process.

*That’s* what a #GreenNewDeal is all about. (vid link)" / Twitter
Then a speech from her at a press conference.


Texas pauses electric bills as some get hit with thousands in costs | The Texas Tribune - "Electric bills are likely to rise for everyone, experts and consumer advocates say, but some Texans on variable rate contracts have been hit with immediate, massive price spikes. Lawmakers and the governor have promised to help, but haven't said how."

 

[lpetrich]

Alexandria Ocasio-Cortez on Twitter: "There are remarkable public servants throughout the state of Texas - just look at Houston!

Thank you @RepSylviaGarcia, @JacksonLeeTX18, & @RepAlGreen for your tireless leadership and warm welcome.

And thanks to the @HoustonFoodBank for their commitment to serving *all* people. (link)" / Twitter

Ted Cruz stayed at this luxury 5-star hotel during his trip to Cancun

• Sen. Ted Cruz visited a Ritz-Carlton hotel amid the Texas storm last week.
• The five-star resort has 9 dining options and a panoramic ocean-front view.
• Amid backlash, Cruz stayed at the hotel for one night before returning home.

Accommodations at the five-star luxury hotel start at over $300

The Mexican resort has a sweeping ocean view. All the rooms at the hotel look out on the Caribbean sea and feature private balconies and terraces.

The luxury resort also has one of the largest hotel beach fronts in Cancun - 1,200 feet of prime beach real estate.

Forbes' Travel Guide ranks the Ritz-Carlton as one of the top luxury hotels in Cancun.

...
The resort has one of the top spas in Cancun

Beto O'Rourke, Alexandria Ocasio Cortez helped Texans in crisis while Ted Cruz was traveling - CNNPolitics

While Cruz was facing criticism, his fellow Republican Sen. John Cornyn was tweeting and retweeting news and guidance for Texans to follow, including a message from the right-leaning R Street Institute, which at one point during the height of the scandal Thursday tweeted, "Meanwhile, @JohnCornyn's Twitter feed is full of helpful news and resources for Texas." Cornyn's office denied that it was trying to draw a contrast with Cruz's handling of the crisis.

The stunning political power of AOC - CNNPolitics
"But it's also extremely important -- in terms of AOC's political future -- to note how incredible it is for a second-term House member to be able to raise so much money so quickly for a cause she chose to advocate for." - $5 million for Texas aid

 

[lpetrich]

Texas faces water shortage as many are still without power - YouTube

Also, some electric-power companies are recommending that their customers disconnect to avoid grotesquely high power bills. If they have to put in a request like that, then what's going on in their electricity pricing? Is there some software that sets it -- software that is too difficult to override without causing a lot of trouble?

1 million meals raised: How Alexandra Ocasio-Cortez’s fundraiser is already benefitting Central Texas | KXAN Austin

The Central Texas Food Bank said so far it’s received $297,303.55 from the fundraiser she launched last week. It can provide four meals for every dollar it receives, which translates to 1,189,214 meals.

“We are so grateful to the Congresswoman and all those who have contributed to these relief efforts,” the food bank said in a statement.

The TV station didn't get numbers from other charities.

But AOC did an impressive feat: raising $5 million for Texas.

 

[T.G.G. Moogly]

I seriously don't get their electricity thing. Where I live you call the utility and they connect/disconnect/troubleshoot/etc. Sure sounds overly complicated and fucked up in texas. So customers are supposed to disconnect so that they don't get bills that are astronomically high? Something seriously stinks.

 

[Keith&Co.]

I seriously don't get their electricity thing. Where I live you call the utility and they connect/disconnect/troubleshoot/etc. Sure sounds overly complicated and fucked up in texas. So customers are supposed to disconnect so that they don't get bills that are astronomically high? Something seriously stinks.

That company charges you what THEY pay for power. So, when they make power, you get it cheap.

When they sell excess power to other distributors, they keep the profits.

When there's unexpected demand, and they have to buy back the power they sold, at probably the same sort of extortionist markup they charged, they pass that along to you.

If this system does not work for you, change power providers.

Or legislatures.

 

[Angra Mainyu]

Also, some electric-power companies are recommending that their customers disconnect to avoid grotesquely high power bills.

That looks like a really bad system. Do you have a link?

 

[crazyfingers]

Also, some electric-power companies are recommending that their customers disconnect to avoid grotesquely high power bills.

That looks like a really bad system. Do you have a link?

The 2nd post in this topic has a link to a good summary

 

[Angra Mainyu]

Also, some electric-power companies are recommending that their customers disconnect to avoid grotesquely high power bills.

That looks like a really bad system. Do you have a link?

The 2nd post in this topic has a link to a good summary

Thanks, though it does not seem to say anything about companies recommending that their customers disconnect to avoid very high power bills. Or do you mean the video, not the text? I'll see if I can watch the video. Nope, nothing in the video, either.

 

[Trausti]

Texas, demonstrating Isolationism working most of the time isn't as good as things working all of the time.

The real issue seems to be weatherization. It had also been cold in Alberta, but Alberta kept the power on despite the surge in demand.

Frigid weather sees Alberta break power demand record

Albert is 43% coal and 49% natural gas. Texas is 23% wind, and 17% coal and 52% natural gas. But the Texas plants froze. Alberta shows coal/gas is just fine, so long as your plants are weatherized. Obviously, no one in Texas had thought it'd get that cold.

 

[Derec]

Honduran family in Texas is not wasting any time before they called a hearse-chasing lawyer.

Family of boy who died during Texas winter storm sues ERCOT and Entergy for $100 million

The family tried to wake up Pavon on Tuesday afternoon but he was unresponsive.

They waited until the afternoon before they tried to wake him up?

The family told KHOU that they tried calling 911 but were waiting on a Spanish-language operator.

I guess learning English in two years was too much to ask for.

 

[Arctish]

Also, some electric-power companies are recommending that their customers disconnect to avoid grotesquely high power bills.

That looks like a really bad system. Do you have a link?

The 2nd post in this topic has a link to a good summary

Thanks, though it does not seem to say anything about companies recommending that their customers disconnect to avoid very high power bills. Or do you mean the video, not the text? I'll see if I can watch the video. Nope, nothing in the video, either.

Texas Power Retailers to Customers in Face of Freeze: Please, Leave Us

Some retail power companies in Texas are making an unusual plea to their customers amid a deep freeze that has sent electricity prices skyrocketing: Please, leave us.

One power supplier, Griddy, told all 29,000 of its customers that they should switch to another provider as spot electricity prices soared to as high as $9,000 a megawatt-hour. Griddy’s customers are fully exposed to the real-time swings in wholesale power markets, so those who don’t leave soon will face extraordinarily high electricity bills.

“We made the unprecedented decision to tell our customers -- whom we worked really hard to get -- that they are better off in the near term with another provider,” said Michael Fallquist, chief executive officer of Griddy. “We want what’s right by our consumers, so we are encouraging them to leave. We believe that transparency and that honesty will bring them back” once prices return to normal.

There was a follow-up Letter from Griddy about the storm and prices sent on the 15th that indicated other power companies weren't going to accept new customers right away, so some folks were going to be paying jacked up rates for a while.

 

[barbos]

This is a galactic level stupidity I have never heard before.

 

[James Brown]

 

[T.G.G. Moogly]

This is a galactic level stupidity I have never heard before.

You've obviously never experienced the greatness that is Texas. It's the only state I've ever lived in that left me with the impression that something must be in the water there. It's probably the best example we have of Libertopia in action.

 

[Angra Mainyu]

That looks like a really bad system. Do you have a link?

The 2nd post in this topic has a link to a good summary

Thanks, though it does not seem to say anything about companies recommending that their customers disconnect to avoid very high power bills. Or do you mean the video, not the text? I'll see if I can watch the video. Nope, nothing in the video, either.

Texas Power Retailers to Customers in Face of Freeze: Please, Leave Us

Some retail power companies in Texas are making an unusual plea to their customers amid a deep freeze that has sent electricity prices skyrocketing: Please, leave us.

One power supplier, Griddy, told all 29,000 of its customers that they should switch to another provider as spot electricity prices soared to as high as $9,000 a megawatt-hour. Griddy’s customers are fully exposed to the real-time swings in wholesale power markets, so those who don’t leave soon will face extraordinarily high electricity bills.

“We made the unprecedented decision to tell our customers -- whom we worked really hard to get -- that they are better off in the near term with another provider,” said Michael Fallquist, chief executive officer of Griddy. “We want what’s right by our consumers, so we are encouraging them to leave. We believe that transparency and that honesty will bring them back” once prices return to normal.

There was a follow-up Letter from Griddy about the storm and prices sent on the 15th that indicated other power companies weren't going to accept new customers right away, so some folks were going to be paying jacked up rates for a while.

Thanks for the links, and yes, that's a pretty serious design flaw.

 

[Loren Pechtel]

There was a follow-up Letter from Griddy about the storm and prices sent on the 15th that indicated other power companies weren't going to accept new customers right away, so some folks were going to be paying jacked up rates for a while.

Duh! A company that doesn't pass on market rates to customers at present is going to be bleeding heavily. Of course they won't take on any new clients now.

Fundamentally, this comes down to a form of insurance. A company like Griddy is not providing any insurance against market rate shock, some other companies do. As always with insurance you pay not only the average cost of claims but something of a premium to get someone else to take the risk. (Normally there are also overhead costs to insurance but in this situation the business relationship and billing already exists, the additional overhead is tiny.)

This is not a case of the company being unfair, it is a case of consumers not realizing the risk they were assuming. Of course, being Texas, I'm sure they weren't required to point out how badly things could go.

Consider another common example of who assumes the risk: Fixed-rate mortgages vs adjustable-rate mortgages. Fixed-rate mortgages are a form of insurance against interest rate increases, ARMs have much less insurance (but since they normally have a maximum rate there is still some insurance involved.)

In the big picture insurance is virtually always a bad deal--we only buy it because we might be the unlucky one. You normally should only buy insurance if you can't afford to be the unlucky one.

(Note, however, that there are some edge cases. I used to buy dental insurance from my employer because I could pay for it with pre-tax dollars but I would have to pay the dentist with post-tax dollars. The insurance company's cut was less than the tax bill would have been. There is also the issue that insurance companies are often in a position to negotiate a better deal--but note that this doesn't actually require insurance to exist. Before the ACA I was wishing someone would come up with health "insurance" with an infinite deductible--there definitely would be a value to the negotiation and crap filtering the health insurance companies provide even if they weren't willing to actually insure you.)