Remember that in the end, Republicans will take advantage of everyone they can find, then tell the victims those people are the bad guys while counting the money they took while people watch and applaud.
While many Texans last week were worried about sky-high electric bills from February’s winter storms, the state’s sole utility commissioner was privately reassuring out-of-state investors who profited from the crisis that he was working to keep their windfall safe.
Texas Monthly has obtained a recording of a 48-minute call on March 9 in which Texas Public Utility Commission chairman Arthur D’Andrea discussed the fallout from the February power crisis with investors. During that call, which was hosted by Bank of America Securities and closed to the public and news media, D’Andrea took pains to ease investors’ concerns that electricity trades, transacted at the highest prices the market allows, might be reversed, potentially costing trading firms and publicly traded generating companies millions of dollars.
“I apologize for the uncertainty,” D’Andrea said, promising to put “the weight of the commission” behind efforts to keep billions of dollars from being returned to utilities that were forced—thanks to decisions by the PUC—to buy power at sky-high prices, even after the worst of the blackout had passed.
Billed as “Learning the Texas Two Step: A Chat with the PUCT,” the call originally was scheduled for early February but was postponed until after the winter storm. The conversation shows a coziness between a top Texas regulator and some of the biggest players in the electricity market at a time when the PUC’s oversight is under fire from lawmakers. At one point, during a discussion about whether natural gas, which also saw huge price spikes during the crisis, would be “repriced,” D’Andrea said no, adding that most legislators understand that gas is priced by global markets and is out of their purview. “But I’ll let you know if I hear anything crazy on it,” D’Andrea said.
PUC spokesman Andrew Barlow said the call was part of regularly scheduled discussions between commissioners “with constituent groups across the spectrum who are interested in myriad issues.” He stressed that D’Andrea did not reveal confidential information or make comments that he hasn’t said publicly or in recent testimony before the Legislature.
Much of D’Andrea’s discussion focused on the issue of repricing some of the most expensive electricity trades during the crisis. Wholesale power prices rose 10,000 percent during the third week of February, hitting the state-imposed maximum of $9,000 per megawatt-hour and staying at those levels for days.
The PUC mandated that the $9,000 prices stay in effect for 32 hours after the market had returned to normal, a move that has angered many municipal utilities and retail electricity providers. Those providers are now struggling with huge bills that they say are unjustified and could push them into bankruptcy, while potentially eventually driving up bills for millions of residential and commercial consumers in Texas. The independent market monitor for ERCOT, the grid operator overseen by the PUC, has called the prices artificially inflated and recommended that billions be returned to purchasers. Some lawmakers have also called for contracts sold during that extended period to be repriced, and lawmakers are debating a bill this week that would force D’Andrea to issue refunds.
Understand that the job of Texas power grid regulators isn't to provide Texans with reliable power at a reasonable cost, it's to make Wall Street energy investors as much profit as possible. Once you understand that, everything makes sense.
Oh, and Arthur D'Andrea has resigned.
On Tuesday night, PUC chairman Arthur D’Andrea, who was appointed chairman by Governor Greg Abbott less than two weeks ago, has resigned. In a statement, Abbott said, “Tonight, I asked for and accepted the resignation of PUC Commissioner Arthur D’Andrea. I will be naming a replacement in the coming days who will have the responsibility of charting a new and fresh course for the agency. Texans deserve to have trust and confidence in the Public Utility Commission, and this action is one of many steps that will be taken to achieve that goal.”
Trust and confidence in being ripped off.
It's what Republican-led governments do.
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