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The Indicator from Planet Money

Texas' new power grid problem

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 27 November 2023

⏱️ 9 minutes

🧾️ Download transcript

Summary

In 2021, a huge winter storm hit Texas. It caused a days-long blackout that resulted in hundreds of deaths. The Texas grid operator adopted a new policy to guard against another blackout: it would incentivize plants to keep power in reserve. The problem is: that may have caused major price spikes.

Today, we make sense of the reserve policy, increased electricity prices, and the future of Texas' unique energy market.

Related Episodes:
ESG bans cost Texas (Apple Podcasts / Spotify)

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Transcript

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0:00.0

NPR. You might remember back in 2021 when there was this huge winter storm that hit Texas.

0:17.0

It caused a blackout that lasted for days and Mose Boushell from Public Radio Station K-U-T in Austin was there to report on it.

0:25.6

Yeah, yeah, and live through it myself. We lost power too.

0:29.1

And in a way that's a good starting point for today's episode, because there was a lot of political fallout from the blackout and ever since

0:36.1

state politicians and regulators have focused more on improving the Texas power grid.

0:41.9

Yeah but it has not been easy.

0:44.5

And now some are saying that a key reform that grid managers here put in place this year

0:49.9

might have inflated energy prices by billions

0:53.4

without any benefit for electric reliability.

0:56.1

It has to do with something called artificial shortages

0:59.2

on the energy market.

1:02.0

This is the indicator from Planet Money, I'm Darren Woods.

1:04.0

And I'm Mosbuchel.

1:06.0

Today's show, what we can learn from Texas on managing and perhaps

1:11.0

mismanaging its energy market.

1:15.0

This message comes from NPR sponsor, Barclay's Corporate and Investment Bank.

1:21.0

Across the globe, industries are transforming. At Barclays

1:25.0

they are helping businesses navigate change to stay ahead. When you partner with

1:29.1

Barclays they bring the power of their entire bank to deliver the insights, financial solutions,

1:34.7

and global perspectives to help your business turn change into possibility.

1:38.9

Barclay's Corporate and Investment Bank, Powering Possible.

1:44.0

So today we're going to talk about the Texas Power Grid, but we're going to start with a little

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