this post was submitted on 17 Dec 2023
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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.

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[–] [email protected] 75 points 9 months ago

Cops don't have to serve and protect or abide by the law. Power companies don't have to supply power. People who sell you things can deny you access to them.

Hey this is fun, let's do more!

[–] [email protected] 41 points 9 months ago

Deregulating the electricity industry has been a complete and utter disaster.

[–] [email protected] 33 points 9 months ago (2 children)

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.

[–] [email protected] 15 points 9 months ago (3 children)

They all used to be. Then Reagan and Clinton happened.

[–] [email protected] 6 points 9 months ago (1 children)

ding ding ding. We have a winner! Give that man a prize!

[–] [email protected] 5 points 9 months ago (1 children)

Thank you, thank you.

My prize will sit proudly in my woman cave.

[–] [email protected] 0 points 9 months ago (1 children)
[–] [email protected] -1 points 9 months ago
[–] [email protected] 2 points 9 months ago (1 children)

Can you point me to where I might learn more about this?

[–] [email protected] 0 points 9 months ago (1 children)

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.

[–] [email protected] 1 points 9 months ago

And in RI, when everyone objects loudly, they nod their heads, and then do it anyway.

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago) (1 children)

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.

[–] [email protected] 0 points 9 months ago

A government providing services is not communism, it's a first-world standard.

[–] [email protected] 19 points 9 months ago (1 children)

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.

[–] [email protected] 5 points 9 months ago

Oh no that's California. In Texas there's 500 providers and no service.

[–] [email protected] 17 points 9 months ago (1 children)

Texans must love the abuse, they keep voting for it.

[–] [email protected] 2 points 9 months ago

There's also a lot of voter suppression and gerrymandering.

[–] [email protected] 14 points 9 months ago

Man, Texas is a real shithole

[–] [email protected] 13 points 9 months ago

Phew. Worried this could lead to overturning that cops have no duty to protect you.

If you don’t like the service you’re getting then just vote in new leaders who can change things /s

[–] [email protected] 12 points 9 months ago (1 children)

Is there legislation that says otherwise? What should the judges do here?

[–] [email protected] 2 points 9 months ago

AFAIK it wouldn't be legislation, it would be damages paid for some kind of breach of contract or some other contract-related issue, since the city delegated energy management to private companies. I'm sure there may be some contractual relationship with the city as well as the customers, but it's not clear to me what type of contractual basis for damages this would amount to.

I suppose it could be gross negligence for not taking reasonable measures to prevent that kind of catastrophic failure, but honestly the standard of care would seem hard to establish. Still, a week without power seems excessive even by extreme weather standards.

Not saying this ruling doesn't suck, just that it seems legally kind of ambiguous.

[–] [email protected] 11 points 9 months ago (1 children)

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.

[–] [email protected] 0 points 9 months ago

They do have their act together. It just doesn't include doing anything good for Texans.

[–] [email protected] 10 points 9 months ago

Second only to the lack of responsibility that Texan judges have.

[–] [email protected] 9 points 9 months ago

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.

[–] [email protected] 6 points 9 months ago (1 children)

In the opinion, Justice Adams noted that, when designing the Texas energy market, state lawmakers “could have codified the retail customers’ asserted duty of continuous electricity on the part of wholesale power generators into law.”

Wow, so helpful to say that 20 years after the fact

[–] [email protected] 9 points 9 months ago (1 children)

I agree with the problem, but I also kind of agree with the judge. The point of separation of powers is that the judicial system interprets the will of the legislative. We have had similar cases in Finland , where the law clearly should say one thing and the courts conclude that the law in fact says another thing. Fortunately, this situation occasionally leads the parliament into saying 'well fuck' and changing the law.

I will admit I don't really understand the role of courts making law in the US and other common law countries, so it might be different there.

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago)

The one time I remember something like that happening in the US was the 2003 Do Not Call telemarketing act. There was a court case that concluded that Congress had not properly authorized regulators to enforce the Do Not Call registry. Congress then took a day or two to pass a new law authorizing the thing they forgot to the first time.

This comes down to two things:

  • Americans really, really hate taking telemarketing calls, regardless of party affiliation
  • The telemarketing industry didn't have significant lobbying at the time to tell anyone in Congress to argue against it
[–] [email protected] 5 points 9 months ago* (last edited 9 months ago) (1 children)

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).

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago)

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.

[–] [email protected] 2 points 9 months ago

The free market solution would allow communities to negotiate contracts that DID hold the provider liable and allow competitors to emerge that would focus on different aspects like reliability, renewable production or integration with other grids.

If you aren't aware of the story of Central and Southwest Corporation (a Texas power company) and thr "midnight connection", it's the type of story that I'm sure is nearing the top of Netflix's documentary todo list.

On May 4, 1976, a power company based in Texas sent electricity from a substation in Vernon, Texas, to Altus, Okla. By doing so, they were breaking a deal among power companies in Texas to keep electricity within state borders.

https://www.kut.org/energy-environment/2022-09-08/texas-energy-island-the-disconnect-vernon-midnight-connection

If what Texas has with ERCOT is neither free market nor a public utility, what is it?

[–] [email protected] 1 points 9 months ago

What a shit hole state.

[–] [email protected] 1 points 9 months ago* (last edited 9 months ago)

The whole social contract thing in the USA is giving off an EULA vibe these days.

[–] [email protected] 0 points 9 months ago (1 children)

Corporations are people, my friend. Just people with all the rights and no responsibilities.

[–] [email protected] 0 points 9 months ago (1 children)

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.

[–] [email protected] -1 points 9 months ago

They're not even equal. Corporations are given more freedom than actual people.

[–] [email protected] -1 points 9 months ago (1 children)

Rich people's electricity stayed on, I'm just saying...

People seem surprised that the face-eating leopards who said that everything was going to be fine if you just allow deregulation of the market, proceeded to then eat the faces of the poors (but not those of the rich, at least whenever it could be avoided).

I'm not even kidding - see no /s - but in Texas, this isn't a bug, it's a feature. This is what "lower taxes" means, bc you don't get something for nothing; and when you pay less, you necessarily get less in return (even though the converse is not always true) - in this case lower robustness to perturbations of the system.

[–] [email protected] 0 points 9 months ago (1 children)

Texas does not have lower Taxes. That is a myth. Texas has lower Income Taxes. They more than make up for it in the other taxes and fees they collect. Texas is actively trying to force People from their homes such that wealthy connected folks can buy the property and rent it out.

[–] [email protected] 1 points 9 months ago (1 children)

Texas does not have lower taxes for the poors, but nonetheless it has lower taxes for the most wealthy citizens. Rich people literally cannot buy as much as the difference between what they make vs. the poors, so the lower Income vs. Sales taxes works in their favor, plus whatever other contributions they may make (charity, tips) they get to choose to hold back in return for services rendered - a building (or wing/floor of one) named in their honor, etc.

But since facts rarely matter, "lower taxes" is one major reason why people want to live in Texas, and why bills passed in Texas get passed - e.g. I was presuming that was how the disconnection from the federal energy grid was sold to the populace.

Even (especially) if it's not strictly true, "lower taxes" is the reason for much that is done in Texas.

[–] [email protected] 0 points 9 months ago (1 children)

The Taxes are not lower, they were just shifted to the wage slaves.

[–] [email protected] 0 points 9 months ago (1 children)

Yes, but (a) a humongous proportion of people don't know/care about that, compared to let's say owning the libs, and (b) ironically they actually are lower, though only for those up top, thus providing the incentive to claim that taxes are "lower" there (when in fact, to the people they are aiming those messages at, they are higher).

[–] [email protected] 1 points 9 months ago

shifting costs around to other sources of funding isn't lowering costs. Someone else is paying the Taxes is all that has changed.