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This thread is oddly critical of people being upset that they were charged 5 figure amounts during a recession for something critical to survival

munk-a 6y ago
Contracting with an electric wholesaler is precisely what free-marketers do to try and save a buck and cut out that meddlesome utility middleman. You're giving up the stability of a pooled service in favor of shaving a bit off the price - this normally works in your favor except when it doesn't, and in this case it really doesn't. I wouldn't say I'm critical of those people, I'm critical of the extremist laissez faire policies in Texas that led to this disaster in general and electricity wholesalers in particular. I am, however, critical of folks who would bemoan medicaid and disaster relief funds until it hits them - in this particular case I don't know enough about the individuals to judge - but asking for 1 billion in damages is pretty extreme if they lost 9k and were one of just 29k customers.
- p1mrx 6y ago
  I think Griddy sounds like an innovative service, one I'd consider using if I had the equipment necessary to drop off-grid when prices are high. The problem is that they sold it to people who didn't understand the risks, and if that weren't the case, they would probably have too few customers to support the business model.
qeternity 6y ago
How is it critical to say people should honor their commitments? Recession or not, we are a nation of laws. There are plenty of fixed rate providers. She opted to take this risk to save a few cents/kwh the rest of the time. This is the trade off.
- chickenpotpie 6y ago
  Have you considered that a lot of the people who take the flexible pricing do it because they couldn’t afford fixed pricing and they had literally no other option?
  - qeternity 6y ago
    And how does this change anything? Should we just force all poor people to pay the higher fixed rates that they supposedly can’t afford so that this never happens? It’s completely irrelevant to the issue at hand.
    - chickenpotpie 6y ago
      Do what every other state does and not leave an essential utility to survival up to the free market? Texas is the only state that has this problem and it’s the only state with an independent power grid.
      - burlesona 6y ago
        Hello from California. We have blackouts every summer when it gets hot. Texas is not the only state that has this problem.
        chickenpotpie 6y ago
        I’m talking about getting charged $10,000 to heat your home
        qeternity 6y ago
        They advertise savings of $600 per year. As has been mentioned before if this is a circa 1 in 16 year phenomenon then she is break even or coming out ahead. There are no free lunches. You can’t just get the $600 in savings and complain about the risk.
7800 6y ago
When you sign up for a variable rate loan and default, you should not sue. The provider in question was providing a service at a variable rate. It had to have been clearly part of the terms. Who to blame are the regulators. Variable rate loans shouldn’t be allowed and neither should this variable rate wholesale crap. But suing someone over a bill in a class-action suit? Do you think the consumers will all get refunded fully? The law firm will get that money.
selectodude 6y ago
I think people are critical of the fact that the lack of regulation in the Texas power market allowed somebody who had absolutely zero idea of the agreement she was entering to make such a catastrophically bad deal. I'd consider myself a somewhat sophisticated financial trader and power derivatives are beyond me. I maintain calls on electricity generation by paying a fixed rate for power. No brokerage firm would allow this person to basically gamble on spot electricity prices but somehow it's okay in the great state of texas.

munk-a 6y ago

Contracting with an electric wholesaler is precisely what free-marketers do to try and save a buck and cut out that meddlesome utility middleman. You're giving up the stability of a pooled service in favor of shaving a bit off the price - this normally works in your favor except when it doesn't, and in this case it really doesn't. I wouldn't say I'm critical of those people, I'm critical of the extremist laissez faire policies in Texas that led to this disaster in general and electricity wholesalers in particular. I am, however, critical of folks who would bemoan medicaid and disaster relief funds until it hits them - in this particular case I don't know enough about the individuals to judge - but asking for 1 billion in damages is pretty extreme if they lost 9k and were one of just 29k customers.

p1mrx 6y ago
I think Griddy sounds like an innovative service, one I'd consider using if I had the equipment necessary to drop off-grid when prices are high. The problem is that they sold it to people who didn't understand the risks, and if that weren't the case, they would probably have too few customers to support the business model.

qeternity 6y ago

How is it critical to say people should honor their commitments? Recession or not, we are a nation of laws. There are plenty of fixed rate providers. She opted to take this risk to save a few cents/kwh the rest of the time. This is the trade off.

chickenpotpie 6y ago
Have you considered that a lot of the people who take the flexible pricing do it because they couldn’t afford fixed pricing and they had literally no other option?
- qeternity 6y ago
  And how does this change anything? Should we just force all poor people to pay the higher fixed rates that they supposedly can’t afford so that this never happens? It’s completely irrelevant to the issue at hand.
  - chickenpotpie 6y ago
    Do what every other state does and not leave an essential utility to survival up to the free market? Texas is the only state that has this problem and it’s the only state with an independent power grid.
    - burlesona 6y ago
      Hello from California. We have blackouts every summer when it gets hot. Texas is not the only state that has this problem.
      - chickenpotpie 6y ago
        I’m talking about getting charged $10,000 to heat your home
        qeternity 6y ago
        They advertise savings of $600 per year. As has been mentioned before if this is a circa 1 in 16 year phenomenon then she is break even or coming out ahead. There are no free lunches. You can’t just get the $600 in savings and complain about the risk.

7800 6y ago

When you sign up for a variable rate loan and default, you should not sue. The provider in question was providing a service at a variable rate. It had to have been clearly part of the terms. Who to blame are the regulators. Variable rate loans shouldn’t be allowed and neither should this variable rate wholesale crap. But suing someone over a bill in a class-action suit? Do you think the consumers will all get refunded fully? The law firm will get that money.

selectodude 6y ago

I think people are critical of the fact that the lack of regulation in the Texas power market allowed somebody who had absolutely zero idea of the agreement she was entering to make such a catastrophically bad deal. I'd consider myself a somewhat sophisticated financial trader and power derivatives are beyond me. I maintain calls on electricity generation by paying a fixed rate for power. No brokerage firm would allow this person to basically gamble on spot electricity prices but somehow it's okay in the great state of texas.