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] 243 points 11 months ago (21 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] 91 points 11 months ago (5 children)

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

[–] [email protected] 33 points 11 months ago (1 children)

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

[–] [email protected] 37 points 11 months ago (8 children)

Thank you, thank you.

My prize will sit proudly in my woman cave.

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[–] [email protected] 61 points 11 months ago

Yep. Essential services should not be for profit.

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[–] [email protected] 160 points 11 months ago (9 children)

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

[–] [email protected] 74 points 11 months ago

Worth noting this ruling is explicitly based on statewide legislation, meaning this could be changed at any time, if the legislature cared at all.

You really do get exactly what you vote for.

[–] [email protected] 19 points 11 months ago

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

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[–] [email protected] 151 points 11 months ago (2 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] 48 points 11 months ago* (last edited 11 months ago) (5 children)

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.

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[–] [email protected] 120 points 11 months ago* (last edited 11 months ago) (3 children)

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.

[–] [email protected] 45 points 11 months ago (1 children)

Conservatives will gleefully watch your family die for fun or profit.

From their beach cabana in Cancun, no less.

[–] [email protected] 28 points 11 months ago (4 children)
[–] [email protected] 22 points 11 months ago (2 children)

Canada apologizes for exporting that to America.

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[–] [email protected] 26 points 11 months ago (1 children)

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.

[–] [email protected] 20 points 11 months ago

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

[–] [email protected] 24 points 11 months ago (1 children)

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.

[–] [email protected] 19 points 11 months ago (3 children)

...or until they are dead.

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[–] [email protected] 90 points 11 months ago (1 children)

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] 61 points 11 months ago* (last edited 11 months ago)

Health Insurance companies don't have to provide payment for health services you pay them to cover.

[–] [email protected] 85 points 11 months ago (7 children)

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

[–] [email protected] 20 points 11 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] 38 points 11 months ago (1 children)

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

[–] [email protected] 30 points 11 months ago (1 children)

You can't arrest a company. You apparently can't even arrest the company's executives for the company's crimes.

[–] [email protected] 13 points 11 months ago (5 children)

I really want to figure out how to make a company and sell it all my debt.

[–] [email protected] 13 points 11 months ago* (last edited 11 months ago)

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.

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[–] [email protected] 85 points 11 months ago (2 children)

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] 24 points 11 months ago (3 children)

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?

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[–] [email protected] 18 points 11 months ago

Absolutely. Protecting profits and shareholders is priority #1.

GOP: "Cry more, peasants."

[–] [email protected] 59 points 11 months ago (1 children)

The more and more I hear about these terrible decisions made in Texas, no exception abortion (even if medically deemed necessary) and now this, the more and more I am grateful I don't live in that trainwreck state.

[–] [email protected] 21 points 11 months ago (1 children)

A recent study showed that Texans have the least personal freedom of any state

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[–] [email protected] 53 points 11 months ago* (last edited 11 months ago) (2 children)

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

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[–] [email protected] 44 points 11 months ago

I hate this fucking state so much.

[–] [email protected] 41 points 11 months ago (5 children)

Better pull up those bootstraps and start finding your own individual source of power. Maybe you can drill for oil in your backyard?

[–] [email protected] 21 points 11 months ago

But don't do this by installing solar panels. That's "woke!"

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[–] [email protected] 41 points 11 months ago

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

[–] [email protected] 38 points 11 months ago

#fuckyourdividends

[–] [email protected] 38 points 11 months ago (1 children)

First world, third world, and Texas.

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[–] [email protected] 37 points 11 months ago (3 children)

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

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[–] [email protected] 31 points 11 months ago (3 children)

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] 14 points 11 months ago* (last edited 11 months ago)

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

A profit generating machine.

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[–] [email protected] 23 points 11 months ago (3 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] 16 points 11 months ago (9 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.

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[–] [email protected] 19 points 11 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.

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[–] [email protected] 18 points 11 months ago (3 children)

Texas power plants have no responsibility to ~~provide electricity~~ save lives in emergencies, judges rule <- FTFY

After all, why should they care if you suffer or die? There's plenty more where you came from.

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[–] [email protected] 16 points 11 months ago (6 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] 16 points 11 months ago (4 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.

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[–] [email protected] 14 points 11 months ago

Man, Texas is a real shithole

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