Even that "excess" capacity was capped by what capacity still exists, so economic truths and results where demand exceeds supply still applies. And regulations

Even that "excess" capacity was capped by what capacity still exists, so economic truths and results where demand exceeds supply still applies. And regulations basically mandate that power distributors/wholesalers must buy it if they need it and are able, no matter the cost. They aren't allowed to make a judgment call that $7k is affordable but $8k is too costly, and just shut off power to their customers. There were still govt effects limiting supply and mandating purchases, even at those prices. And that's not an accident of policy; that's the intent, in artificially manipulating markets in support of agendas they can't outright mandate.