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As much as this article tries to make this call ominous it’s not surprising at all. The head of the regulatory regime for the energy financial system in Texas w

As much as this article tries to make this call ominous it’s not surprising at all. The head of the regulatory regime for the energy financial system in Texas went on a call and suggested there is nothing to worry about for the energy market in Texas. Can you imagine the headline if they’d said “PUC chair terrifies energy industry causing unanticipated price spikes on a random Tuesday”?

FireBeyond 6y ago
That's a generous spin. It wasn't about "oh, don't worry about the energy market", it was: > During that call, which was closed to the public and news media, D’Andrea took pains to ease investors’ concerns that electricity trades, transacted at the highest prices the market allows, might be reversed > At one point, during a discussion about whether natural gas, which also saw huge price spikes during the crisis, would be “repriced,” D’Andrea said no, adding that most legislators understand that gas is priced by global markets and is out of their purview. “But I’ll let you know if I hear anything crazy on it,” D’Andrea said. And this was after this: > The PUC mandated that the $9,000 prices stay in effect for 32 hours after the market had returned to normal, a move that has angered many municipal utilities and retail electricity providers. No, it absolutely was about "You'll be getting your money, at the expense of consumers". > Tim Morstad, associate state director for AARP Texas, said instead of offering assurances to investors, D’Andrea should be offering them to consumers. Even Texas Republicans argued over repricing. But never fear, D'Andrea was there to make sure: > “It’s a contentious political issue. The best I can do is put the weight of the commission in favor of not repricing.” And that BOA analysts just needed to hang tight: > D’Andrea noted that ERCOT requires that all trades be finalized in thirty days, which means the last of the maximum-priced contracts will be settled this week. After that, he said, any repricing discussion is moot. D’Andrea said he doubted lawmakers could get a bill passed in time to force repricing This sounds like someone who is absolutely committed to making sure the banks make money off the market, and does a very good job of making sure that is or appears to be his sole priority.
- geoduck14 6y ago
  I'm not fully convinced he is a "bad guy" with your quotes. Don't get me wrong, I'm a consumer, and I don't want sky high rates, but hear me out. He was on a call with a bunch of investors. He wants those investors to be reassured everything is OK. He might tell them the truth. He might lie. At face value, it looks like there was a contractual agreement: gas costs X, you will get paid X. And nothing can change that. Except something CAN change that contract. Bankruptcy courts are empowered to retroactively change contracts (IANAL!)- AND some groups (like Brazos Electric) are suing ERCOT to reduce the cost. So ERCOT might be in a tough spot: they pay investors lots of money, and they don't get paid lots of money from consumers like Brazos Electric. D'Andre might be setting ERCOT to be tossed around by the court or perhaps to become insolvent.
  - selimthegrim 6y ago
    D'Andrea has resigned as per updates in the article.
    - geoduck14 6y ago
      That makes me feel better.

FireBeyond 6y ago

That's a generous spin. It wasn't about "oh, don't worry about the energy market", it was: > During that call, which was closed to the public and news media, D’Andrea took pains to ease investors’ concerns that electricity trades, transacted at the highest prices the market allows, might be reversed > At one point, during a discussion about whether natural gas, which also saw huge price spikes during the crisis, would be “repriced,” D’Andrea said no, adding that most legislators understand that gas is priced by global markets and is out of their purview. “But I’ll let you know if I hear anything crazy on it,” D’Andrea said. And this was after this: > The PUC mandated that the $9,000 prices stay in effect for 32 hours after the market had returned to normal, a move that has angered many municipal utilities and retail electricity providers. No, it absolutely was about "You'll be getting your money, at the expense of consumers". > Tim Morstad, associate state director for AARP Texas, said instead of offering assurances to investors, D’Andrea should be offering them to consumers. Even Texas Republicans argued over repricing. But never fear, D'Andrea was there to make sure: > “It’s a contentious political issue. The best I can do is put the weight of the commission in favor of not repricing.” And that BOA analysts just needed to hang tight: > D’Andrea noted that ERCOT requires that all trades be finalized in thirty days, which means the last of the maximum-priced contracts will be settled this week. After that, he said, any repricing discussion is moot. D’Andrea said he doubted lawmakers could get a bill passed in time to force repricing This sounds like someone who is absolutely committed to making sure the banks make money off the market, and does a very good job of making sure that is or appears to be his sole priority.

geoduck14 6y ago
I'm not fully convinced he is a "bad guy" with your quotes. Don't get me wrong, I'm a consumer, and I don't want sky high rates, but hear me out. He was on a call with a bunch of investors. He wants those investors to be reassured everything is OK. He might tell them the truth. He might lie. At face value, it looks like there was a contractual agreement: gas costs X, you will get paid X. And nothing can change that. Except something CAN change that contract. Bankruptcy courts are empowered to retroactively change contracts (IANAL!)- AND some groups (like Brazos Electric) are suing ERCOT to reduce the cost. So ERCOT might be in a tough spot: they pay investors lots of money, and they don't get paid lots of money from consumers like Brazos Electric. D'Andre might be setting ERCOT to be tossed around by the court or perhaps to become insolvent.
- selimthegrim 6y ago
  D'Andrea has resigned as per updates in the article.
  - geoduck14 6y ago
    That makes me feel better.