how does a high demand for power equate to a $10K power bill for either wholesale or civilian accounts? (TX)
In: Economics
Some of the billing in Texas are either fixed rate or variable rate, depending on the power company and the customers choice. If you had the variable rate plan, your power cost is based on supply and demand. If there is a very large supply (very sunny and windy) and not much demand (mid 60s temp), then power costs would go down and you would save money compared to a fixed rate. But when the temp really dropped, everyone was trying to use power to heat their homes (High demand) and power generation plants went offline due to freezing problems (very low supply). So that drove the cost extremely high for the given power available. If you were on a fixed plan, you made out great. If you were on a variable plan, well, it cost you a lot for a very short amount of time. The guy being used for the 10k example is an extreme but he did use 600 dollars worth a month normally. So he is a big consumer of power for his 3 different meters. He played the gambling game of variable rates. And got burned at it.
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