Here's another paradox worth thinking about when trying to have incentive-only regulations (carrots without sticks.) You might think that higher rates would in

Here's another paradox worth thinking about when trying to have incentive-only regulations (carrots without sticks.) You might think that higher rates would incent companies to weatherize, but actually they perversely might reduce incentives... if you owned 100 power plants, of which some will work in an emergency and some won't, all you need is for the fraction that are weatherized to get enough surplus revenues during peak times to cover for the plants that are offline so that your overall revenues are flat or slightly higher. Higher electricity rates actually reduce your need to weatherize your plants.