Almost three years since the deadly Texas blackout of 2021, a panel of judges from the First Court of Appeals in Houston has ruled that big power companies cannot be held liable for failure to provide electricity during the crisis. The reason is Texas’ deregulated energy market.
The decision seems likely to protect the companies from lawsuits filed against them after the blackout. It leaves the families of those who died unsure where next to seek justice.
In February of 2021, a massive cold front descended on Texas, bringing days of ice and snow. The weather increased energy demand and reduced supply by freezing up power generators and the state’s natural gas supply chain. This led to a blackout that left millions of Texans without energy for nearly a week.
The state has said almost 250 people died because of the winter storm and blackout, but some analysts call that a serious undercount.
#fuckyourdividends
Hot take: The ruling is accurate.
Vote for candidates who privatize utilities. Get what you vote for.
Only sucks for those that can’t leave and are stuck with a system they can’t correct.
Absolutely. Protecting profits and shareholders is priority #1.
GOP: “Cry more, peasants.”
As one of those people who is stuck in the system I can’t correct: I agree.
I had to shit in grocery bags for a week because my toilet was frozen solid. But the blame only partly lies on the power companies. The vast majority of the blame lies on the regulatory agency who had the opportunity to require winterized gear for power plants… And repeatedly refused to do so.
Companies will always choose the cheapest option for whatever market they’re in. And winterizing all your gear is expensive when compared to… Well… Not. Could they have taken the initiative and winterized anyways? Absolutely. But if there’s one thing humans are generally really really bad at, it’s emergency preparedness. Because nobody wants to spend a ton of money building an earthquake-resistant home until after they experience their first earthquake. But that’s why building codes exist, to ensure everyone is forced to build to a minimum safe standard. To use this same metaphor, the building codes didn’t require winterized gear, so the companies didn’t build winterized gear. The fault primarily lies with the people who wrote the building codes, while knowing full well that the area could and would experience winter weather.
ERCOT is the regulatory agency that set those standards, and ERCOT is the agency that refused to require winterized gear. It wouldn’t be fair to penalize the power companies for failing to provide power, when ERCOT should have ensured their facilities were adequately prepared. It would also set a weird precedent to require companies to provide something in a disaster. Yes, they’re utility companies, and are subject to more regulation than most. But does this also mean they could be penalized for downed power lines during a tornado, or for blown transformers during a hurricane flood in Houston?
I’m sorry you had to go through that, and even more sorry your vote isn’t joined by others in greater numbers.
Right, but also power delivery shouldn’t be privatized at all. Sure the energy providers might not technically be at fault, but having a corporate middle man providing an essential service is ridiculous. We shouldn’t be talking about electricity providers as corporate entities at all. But you are still technically correct
That would take away their liberties!
How can a power company realistically be compelled to provide power, in an emergency? They cannot guarantee that any more than a police officer can guarantee their ability to protect you.
Such a law could only be there to create scapegoats for politicians to hang after they botch the response to a natural disaster or some minor event that significantly disrupts power distribution.
This exact problem is systematised in software and other infrastructure regions. Even hospitals for example have backup generators.
The problem is that power companies making resilient grids eats into their profits and so they won’t do it unless they’re compelled to
Power companies don’t make grids its the independent operator, in Texas’ case ERCOT, who reported on this potentiality many times but did not receive direction to require facilities to cold proof their gas infrastructure or mediate the risk through gas storage etc. The power companies can’t be held liable for what wasn’t required of them and the regulator can’t because they publicized the risk and recommended it. Ultimately it’s the government at fault.
I’m on board with this. It goes to my original coment, though. It’s not just the government’s fault. It’s the people’s fault for electing them.
IMO it should be less about compelling them during an emergency as ensuring adequate disaster preparation and grid stability well before an emergency. Not much to do once the damage is already done other than figure out how to ensure it won’t happen again.
Friendly reminder about the event in question: the temperature wasn’t even THAT cold (minimum 0F IIRC). Much of the world deals with ice storms and freezing temperatures without the entire grid failing. I understand a state that deals with heat more than cold being less prepared for ice, but the lesson should need to be learned only once.
Of course, the problem as well as the solution was already recognized - distributed systems to provide redundancy. That would require being regulated nationally, which is far worse for them than some people dying.
This is the same for other jurisdictions as well, it’s just that emergency situations will be investigated. The northeast blackout is another use case in North America and it happened in August so things were much different. We’ve had ice storms that took out transmission infrastructure too. Ultimately the regulator in Texas case actually reported on these risks and recommended changes to regulations.
SLOs and SLAs are a thing. And yes, they do and can guarantee power to enterprises that pay for it. So it’s not a matter of “if” but, like all things Texans, “how much”.
Capitalism 👌
What a shit hole state.
Three cheers for privatization of public utilities! /s
As an aside, I am gutted by 250+ people losing their lives because Texan politicians can’t get their act together to hold companies responsible. Legislation works … and politicians can, and should, make the laws.
This was the second time it happened too. It happened ten years prior as I recall. So they did nothing then. Did nothing later. No responsibility for anything later. Fuck Texas.
Maybe they decided the right people were getting hurt?
It’s less about the right people getting hurt, and more about the right people making bank (e.g. themselves).
Though they’ll chalk up people that they would prefer not to be in their state to be an absolute win if they can legally kill them
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We had rolling blackouts for a few hours. Nothing that remotely resembled the state of failure in 2021 where 90% of Texas lost power for several days.
However it was a very clear indication that we had a problem that obviously was never resolved.
That storm was completely crazy though. I don’t think Texas has EVER experienced anything like it before.
That storm was completely crazy though. I don’t think Texas has EVER experienced anything like it before.
That will be a yearly occurrence now.
Well…it’s already not so…no.
They do have their act together. It just doesn’t include doing anything good for Texans.
What a shithole. And I say that as an Indiana resident. At least our heat stays on in the winter.
Yeah these shithole states are really poisoning the blood of America. Did I get that right? /s
All the states offshore the blood poisoning to China.
Corporations are people, my friend. Just people with all the rights and no responsibilities.
Yeah … SCOTUS.
If there are no people, there is no company. If there are no companies, people will survive.
That takes care of whatever stupidity SCOTUS was thinking when they made companies and people equal.
They’re not even equal. Corporations are given more freedom than actual people.
You can’t arrest a company. You apparently can’t even arrest the company’s executives for the company’s crimes.
I really want to figure out how to make a company and sell it all my debt.
Were you born to rich parents?
Sadly no, I’ve been bootstrapping it.
You’re probably out of luck.
It’s called the Texas two step.
You file business papers in Texas and open an account there.
You use that business to buy all your underwater assets and other liabilities, leaving you free and clear. Then you declare bankruptcy with your Texas company, wiping out the debts. It what you do when grandpappy and the old board sold asbestos to everyone and their kids and now that you’re in charge you just want that to go away so you can enjoy your trust fund without fear of any destitute widows or their children trying to take any of it.
In any normal state, this is treated as a sham transaction or a straw purchase and is void ab initio. In Texas though, as a handout to the mining, chemical, and business insurance industries, you can follow none of the corporate formalities needed anywhere else to preserve your corporate viel, and just declare that your company is now two, unrelated companies, sort of like that movie Twins where, even though they are genetically identical and born at the same time from the same parents, one of the newborn companies has all the good stuff and the other has all the crap, and you can pretend it was separated at birth, like it never even existed. And that’s how you do the Texas two step. Step three actually is profit.
You set up a company A. You also make a consultant company B. Company A hires very highly paid consultants from company B. Meanwhile you make paintings. You sell those paintings to company B at high prices with the money you got from company A. Now your debts are gone and company A is in debt. Fold company A and B. Add in some shell companies in the Bahamas if needed.
But, you need to have enough money to set up companies, have expensive accountants and lawyers, and to pay off some officials. You’ll have to be rich to become more rich basically.
Don’t follow this advice, it’s just fiction.
And no taxes or very little.
Texans must love the abuse, they keep voting for it.
It’s not that they love it. They’re just so dumb they’ll be convinced it was the fault of the gays and/or trans people.
I just moved out of that state.
Never blamed anyone for leaving but use to advocate a lot to push for change in red states like mine but at this point its obvious they are trying to make living in those states untenable for those with a conscious or not completely crushed & apathetic.
Are you sure its not just Gerrymandering and laws that make it harder for votes to actually matter?
From what I’ve heard is that there’s a large majority stuck in Texas who disagree with the decisions of their government but are too poor to leave the state.
I’m sure gerrymandering is a large part of it.
Suckers with no self esteem.
This election’s got me so low
If they keep it up, people might pack up and go
There’s also a lot of voter suppression and gerrymandering.
The whole social contract thing in the USA is giving off an EULA vibe these days.
Reminds me of Kimberly Latrice Jones’ chat.
that is the greatest compliment thank you
Remember when conservatives blamed “windmills” for this? All while conservatives in charge of Texas raked in millions of dollars in campaign donations from ERCOT members. Conservatives will gleefully watch your family die for fun or profit.
A conservative is incapable of empathy or remorse. Be very careful in your dealings with them. They do not value the lives of others the way normal people do.
Incapable of truth, too. As a lawyer, I will not take them on as clients. They lie constantly to justify their emotions. That’s really it.
But muh feewings!
As an aside, I used to live in a remote fishing area and we had tons of American visitors. I remember one woman told me she knew Obama was the devil because she felt “the evil” emanating from him.
smdh
Conservatives will gleefully watch your family die for fun or profit.
From their beach cabana in Cancun, no less.
Rafael Cruz 😂
The greatest Canadian to ever live
Do you mean Fled?
I thought there was a law passed where you have to call people by their ”deadname". If so, all should be calling him Rafael /jk
Canada apologizes for exporting that to America.
They can’t be bargained with. They can’t be reasoned with. They don’t feel pity, or remorse, or fear. And they absolutely will not stop, ever, until we are dead.
…or until they are dead.
You’re not wrong!
I see a ginormous BBQ coming soon.
I love long bacon
Yikes. You’d think in a place where they know they will have extraordinary weather events, they would legislate special requirements to ensure everyone’s safety.
Incidentally, I first heard about this saga when I saw a report a while ago about people being scammed by solar panel grifters (who overcharge for installing systems that provide little to no independence from the grid despite making those claims in their ads).
It’s a good opportunity to remind people: solar panels without a grid disconnect and/or a battery are not independent of the grid. The utility company will shut them off while the power is out.
Man, Texas is a real shithole
First world, third world, and Texas.
Texas is a shithole, and even more insufferable are the Texan nationalists. It’s funny from a distance, but being there not so much.
It is almost like natural monopolies, such as primary power generation and supply, should be under the control of the Government and not private individuals.
They all used to be. Then Reagan and Clinton happened.
Most places that are not Texas still have something resembling the old school utility model where the state effectively grants a license to a private company to operate and manage the grid, which is itself a public right of way. This is governed by a state appointed utility board.
And in RI, when everyone objects loudly, they nod their heads, and then do it anyway.
ding ding ding. We have a winner! Give that man a prize!
Thank you, thank you.
My prize will sit proudly in my woman cave.
Sorry but lemmy has declared you a male. Your penis will arrive in 3 to 5 business days.
I have a battery-operated one that gives me no drama or grief.
Hopefully that penis is returnable.
Best I can do is store credit.
If she really cared about her battery-operated penis, she’d use the store credit to buy it a fleshlight.
Woman caave… go on
Down, boy.
Please note; man was intended as species as in “give that dog a prize” I’m just a dead cat.
All good. :)
Can you point me to where I might learn more about this?
This is pretty good article about how and why.
Why did it take me so long to finally realize that by privatizing services like these, governments are preemptively shifting the blame when the service fails? Voters who are angry at the energy company won’t be (as) angry with the politicians.
That’s communism and we are a capitalist country.
The right thing to do under a capitalist economy is to buy the government and give yourself a monopoly.
This isn’t a natural monopoly, it’s protected by legislature and cronyism.
A proper capitalist approach to utilities, then the pipes and wires need to be considered no different then the road they are installed on. Recoup money by selling metered wholesale access to the carriers and utilities.
But we don’t have proper capitalism. We have this bastardized American version that sucks.
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
We settled it before the damn constitution even started. How these nitwits in DC don’t see how publicly run infrastructure doesn’t provide for the common defense or promote general welfare is beyond me. But I guess running water, heat, affordable healthcare, and an ability to communicate with each other and the rest of the world doesn’t count under that, somehow.
Maybe if the courts took the founders intent from the Prologue instead of the secret letters to their mistresses, we’d have a functional system. But that’s just my opinion.
You mean the dudes who owned slaves and thought that only white men were people? Ok yeah, they were righteous …
Many of them were either abolitionists or manumissionists. It’s hard to believe we had always been so conflicted since our founding (as many of the northern states had already abolished slavery before ratifying the constitution), yet still managed to have a reasonably functional government essentially made up entirely of rich white dudes who openly hated each others guts.
Also it’s easy to sit here and poo-poo the whole slavery thing now, 300 something years later. Washington got his first slaves from inheritance. When he was 11. That’s not me dismissing it, that’s just me demonstrating how normalized it was.
A government providing services is not communism, it’s a first-world standard.
I thought the sarcasm of my first two paragraphs was heavily laid on, but I suppose not.
I don’t disagree with you, however the majority of electoral college and senate voters agree with my first two paragraphs.
We are insistent that we must do things differently. This American Exceptionalism, as if there’s something fundamentally different between humans born inside its walls than the ones born out.
If we must be insistent that we’re different, we should at least be consistent in its application. The preamble basically implies that the ideal is exactly what you and the rest of my post is saying.
In the modern world a countries greatest strength is its ability to utilize its economies of scale. If for no other reason we should at least realize that the existing systems are unsustainably wasteful.
I’m sorry. I had someone argue something very similar to me. And since it was someone I knew IRL, I knew they were 100% serious…
What are yah, some sorta communist? /s He’s sayin private companies shouldnt be fuckin us over, get him! /s
Production can be liberalised, but it requires good regulation. Regulation failed to include a rule for responsibility to provided a minimum of energy, the judge can’t do more than the regulation law. It works in EU, we didn’t have blackout past year even though the situation was dramatic mostly due to the Russian invasion, because the liberalised market allowed efficient sharing of energy where it was most needed.
I wouldn’t be so certain a public monopoly could have managed it in such an efficient way (in terms of finance, energy usage and service). People tend to idealize public administration.
Let me guess, if I don’t like it I’m free to start my own power generation company, in a city that’s had only one provider for over 60 years.
Oh no that’s California. In Texas there’s 500 providers and no service.
Second only to the lack of responsibility that Texan judges have.
