Technology

While I don't think the way Texas has the regulations setup is a good idea, one has to look more at the 'whole picture' and do the math. Is the low cost periods low enough that when you get 'gouged' by the spikes, what was the total average cost? If the spikes are taken as a average over time, then maybe it works out in the consumer's favor or at worst break even, then it might be worth it. Or maybe it doesn't But I honestly don't know. I don't have the numbers in front of me to do the math, I'm a 1000+ miles away from Texas.

Edit to add: I don't know just how much extra electricity Texas will need to buy, but I would assume they will be buying a noticeable amount. And the cost of electricity is VERY expensive in the spot market. It's why my co-op is doing major upgrades to the hydro-electric dam. To increase the efficiency and reduce the need to buy expensive spot market power.

And without a good way to store the excess power generated, solar and wind aren't very good for peak loads. You can't merely flip a switch and spool up more power than a solar panel or wind generator can produce. Clouds reduce efficiency, insufficient or too much winds shut down wind generators. And despite having more alternative generation than everyone's hero - California, it still not enough to carry the whole load. Consumers are raising demand far faster than enough infrastructure can be built out to supply that demand. So for peak loads, natural gas generators are used because they can be turned on and off quickly as needed. This adds excess cost.

The installation of storage batteries farms is fantastic. But it will take time and it will add cost to consumers electric bill.

And despite some tankie's beliefs, nothing is free - it all costs something. I'm a member of a tiny rural electric co-op. The co-op needs to make a profit to afford maintenance and upgrades to our tiny grid. Our power is generated by a hydro-electric dam and my rates have gone up this year to to cover the costs of some major maintenance on the dam and the addition of 3 new linemen to keep the electricity flowing to my heat pump that the co-op incentivizes and highly encourages.

@puppy @Wanderer Greed?

Its wholesale prices, it's what they do. Same in Europe same in Australia.

Texas looks fairly middle of the pack with decreasing prices. Compare it to another state with high levels of renewable and California is second highest after some islands and has increasing prices.

https://www.cnet.com/home/energy-and-utilities/electricity-rates-by-state/