Electricity market faces a test (plant shut-downs in Texas)

[Rose Siding]

Texas' capacity to generate enough electricity could drop below healthy levels as soon as next year, thanks to companies' market-driven decisions to shut down power plants across the state.

After a huge construction spurt at the start of the decade, Texas had a glut of power-generation capacity. But the recent mothballing and dismantling of older power plants could push supplies to the edge much sooner than expected.

Texas is far from a California-style blackout crisis. But the situation has created a crucial first test of one aspect of the deregulated electric market. Regulators and grid planners are watching carefully to see whether the prospect of higher electricity prices will work to entice generators to build new plants soon.
...
If the reserve margin were to shrink, the most serious problems would pop up on the hottest summer days, when the ERCOT grid reaches peak demand.

http://www.dallasnews.com/sharedcontent/dws/bus/stories/020705dnbusercot.13ef4.html

[Skink]

1. Is it right to pay a hundred a month...

in electricity for a one bedroom apartment. That's where we are in Texas.

[Igel]

4. Ouch. We pay less than that for a 3 bedroom apt. Houston. n/t

[annabanana]

2. two! four! six! eight!

It's time to re-regulate!

(and watch out for the "deregulate the water supply" people)

But at least Steve and Paul can't marry!

[Bridget Burke]

3. Things were bad all over during the California "blackout crisis"

Fake & engineered as it was.

Here in Texas, there were no blackouts. But higher power costs were used as an excuse for raising tuition at state universities.

For every Texan who got rich at Enron, a hundred more Enron employees were screwed out of jobs, pensions & investments. And lots of other Texans had Enron stock--or their pension plans did. Even those not directly touched have no love for Kenny Boy. I wish the Democrats had ragged a bit more on Bushie's good pals.