"Texas Grid's 'Artificial Shortages' in Summer Heat: A Costly $8 Billion Mistake"
An analysis by the independent market monitor of Texas' electricity market found that the state's grid operator, ERCOT, intentionally created "artificial shortages" this summer, resulting in soaring electricity prices that cost consumers about $8 billion over three months. The introduction of a new reserve mechanism aimed at preventing blackouts led to the withholding of electricity supply from the market, pushing up prices even during periods of ample supply. While power companies and cryptocurrency miners benefited from the price spikes, ordinary Texans are likely to face higher energy costs in the future. Critics argue that the change did not significantly improve grid reliability and is essentially a transfer of wealth from consumers.