Almost three years since the deadly Texas blackout of 2021, a panel of judges from the First Court of Appeals in Houston has ruled that big power companies cannot be held liable for failure to provide electricity during the crisis. The reason is Texas’ deregulated energy market.

The decision seems likely to protect the companies from lawsuits filed against them after the blackout. It leaves the families of those who died unsure where next to seek justice.

In February of 2021, a massive cold front descended on Texas, bringing days of ice and snow. The weather increased energy demand and reduced supply by freezing up power generators and the state’s natural gas supply chain. This led to a blackout that left millions of Texans without energy for nearly a week.

The state has said almost 250 people died because of the winter storm and blackout, but some analysts call that a serious undercount.

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[–] 268 points 2 years ago (21 children)

It is almost like natural monopolies, such as primary power generation and supply, should be under the control of the Government and not private individuals.

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  • [–] 103 points 2 years ago (5 children)

    They all used to be. Then Reagan and Clinton happened.

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    [–] 183 points 2 years ago (9 children)

    Texans must love the abuse, they keep voting for it.

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  • [–] 90 points 2 years ago

    Worth noting this ruling is explicitly based on statewide legislation, meaning this could be changed at any time, if the legislature cared at all.

    You really do get exactly what you vote for.

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    [–] 161 points 2 years ago (2 children)

    Three cheers for privatization of public utilities! /s

    As an aside, I am gutted by 250+ people losing their lives because Texan politicians can't get their act together to hold companies responsible. Legislation works ... and politicians can, and should, make the laws.

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    [–] 131 points 2 years ago* (3 children)

    Remember when conservatives blamed "windmills" for this? All while conservatives in charge of Texas raked in millions of dollars in campaign donations from ERCOT members. Conservatives will gleefully watch your family die for fun or profit.

    A conservative is incapable of empathy or remorse. Be very careful in your dealings with them. They do not value the lives of others the way normal people do.

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  • [–] 50 points 2 years ago (1 child)

    Conservatives will gleefully watch your family die for fun or profit.

    From their beach cabana in Cancun, no less.

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  • [–] 29 points 2 years ago (1 child)

    Incapable of truth, too. As a lawyer, I will not take them on as clients. They lie constantly to justify their emotions. That's really it.

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  • [–] 24 points 2 years ago

    But muh feewings!

    As an aside, I used to live in a remote fishing area and we had tons of American visitors. I remember one woman told me she knew Obama was the devil because she felt "the evil" emanating from him.

    smdh

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  • [–] 110 points 2 years ago (11 children)

    Hot take: The ruling is accurate.

    Vote for candidates who privatize utilities. Get what you vote for.

    Only sucks for those that can't leave and are stuck with a system they can't correct.

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  • [–] 24 points 2 years ago (3 children)

    As one of those people who is stuck in the system I can’t correct: I agree.

    I had to shit in grocery bags for a week because my toilet was frozen solid. But the blame only partly lies on the power companies. The vast majority of the blame lies on the regulatory agency who had the opportunity to require winterized gear for power plants… And repeatedly refused to do so.

    Companies will always choose the cheapest option for whatever market they’re in. And winterizing all your gear is expensive when compared to… Well… Not. Could they have taken the initiative and winterized anyways? Absolutely. But if there’s one thing humans are generally really really bad at, it’s emergency preparedness. Because nobody wants to spend a ton of money building an earthquake-resistant home until after they experience their first earthquake. But that’s why building codes exist, to ensure everyone is forced to build to a minimum safe standard. To use this same metaphor, the building codes didn’t require winterized gear, so the companies didn’t build winterized gear. The fault primarily lies with the people who wrote the building codes, while knowing full well that the area could and would experience winter weather.

    ERCOT is the regulatory agency that set those standards, and ERCOT is the agency that refused to require winterized gear. It wouldn’t be fair to penalize the power companies for failing to provide power, when ERCOT should have ensured their facilities were adequately prepared. It would also set a weird precedent to require companies to provide something in a disaster. Yes, they’re utility companies, and are subject to more regulation than most. But does this also mean they could be penalized for downed power lines during a tornado, or for blown transformers during a hurricane flood in Houston?

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    [–] 90 points 2 years ago (1 child)

    Cops don't have to serve and protect or abide by the law. Power companies don't have to supply power. People who sell you things can deny you access to them.

    Hey this is fun, let's do more!

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  • [–] 88 points 2 years ago (7 children)

    Corporations are people, my friend. Just people with all the rights and no responsibilities.

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  • [–] 22 points 2 years ago (1 child)

    Yeah ... SCOTUS.

    If there are no people, there is no company. If there are no companies, people will survive.

    That takes care of whatever stupidity SCOTUS was thinking when they made companies and people equal.

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    [–] 61 points 2 years ago* (2 children)

    The whole social contract thing in the USA is giving off an EULA vibe these days.

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    [–] 60 points 2 years ago (6 children)

    Better pull up those bootstraps and start finding your own individual source of power. Maybe you can drill for oil in your backyard?

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    [–] 59 points 2 years ago (1 child)

    The more and more I hear about these terrible decisions made in Texas, no exception abortion (even if medically deemed necessary) and now this, the more and more I am grateful I don't live in that trainwreck state.

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  • [–] 48 points 2 years ago

    I hate this fucking state so much.

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  • [–] 41 points 2 years ago

    Deregulating the electricity industry has been a complete and utter disaster.

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  • [–] 38 points 2 years ago (1 child)

    First world, third world, and Texas.

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    [–] 38 points 2 years ago

    #fuckyourdividends

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  • [–] 37 points 2 years ago (3 children)

    Phew. Worried this could lead to overturning that cops have no duty to protect you.

    If you don’t like the service you’re getting then just vote in new leaders who can change things /s

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    [–] 32 points 2 years ago (3 children)

    The free market solution would allow communities to negotiate contracts that DID hold the provider liable and allow competitors to emerge that would focus on different aspects like reliability, renewable production or integration with other grids.

    If you aren't aware of the story of Central and Southwest Corporation (a Texas power company) and thr "midnight connection", it's the type of story that I'm sure is nearing the top of Netflix's documentary todo list.

    On May 4, 1976, a power company based in Texas sent electricity from a substation in Vernon, Texas, to Altus, Okla. By doing so, they were breaking a deal among power companies in Texas to keep electricity within state borders.

    https://www.kut.org/energy-environment/2022-09-08/texas-energy-island-the-disconnect-vernon-midnight-connection

    If what Texas has with ERCOT is neither free market nor a public utility, what is it?

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    [–] 23 points 2 years ago (3 children)

    In the opinion, Justice Adams noted that, when designing the Texas energy market, state lawmakers “could have codified the retail customers’ asserted duty of continuous electricity on the part of wholesale power generators into law.”

    Wow, so helpful to say that 20 years after the fact

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  • [–] 16 points 2 years ago (9 children)

    I agree with the problem, but I also kind of agree with the judge. The point of separation of powers is that the judicial system interprets the will of the legislative. We have had similar cases in Finland , where the law clearly should say one thing and the courts conclude that the law in fact says another thing. Fortunately, this situation occasionally leads the parliament into saying 'well fuck' and changing the law.

    I will admit I don't really understand the role of courts making law in the US and other common law countries, so it might be different there.

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    [–] 19 points 2 years ago (1 child)

    Let me guess, if I don't like it I'm free to start my own power generation company, in a city that's had only one provider for over 60 years.

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    [–] 18 points 2 years ago (3 children)

    Texas power plants have no responsibility to provide electricity save lives in emergencies, judges rule <- FTFY

    After all, why should they care if you suffer or die? There's plenty more where you came from.

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    [–] 18 points 2 years ago (6 children)

    Rich people's electricity stayed on, I'm just saying...

    People seem surprised that the face-eating leopards who said that everything was going to be fine if you just allow deregulation of the market, proceeded to then eat the faces of the poors (but not those of the rich, at least whenever it could be avoided).

    I'm not even kidding - see no /s - but in Texas, this isn't a bug, it's a feature. This is what "lower taxes" means, bc you don't get something for nothing; and when you pay less, you necessarily get less in return (even though the converse is not always true) - in this case lower robustness to perturbations of the system.

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