• 0 Posts
  • 17 Comments
Joined 1 year ago
Cake day: June 19th, 2023
  • cloud_herder@lemmy.worldtoNo Stupid Questions@lemmy.world•How do Texas residents afford electricity during high-demand?
    271·
    2 months ago

    I’ve done lots of tech projects within the retail energy industry in Texas - this is the right answer.

    To expand a little bit:

    Retail energy providers (REPs), like NRG, ClearSky, Just Energy, etc. make their money by forecasting the amount of energy that will be needed as far in advance as possible and purchasing that amount from power generators like CenterPoint and marking it up a few cents. The farther out, the cheaper they can get it. I’ve helped build forecasting engines for a few that ingest historical usage data from meters (all meters in Texas are smart meters), weather data, and others to use machine learning to forecast how much individuals will need and aggregate it together to help the energy traders make better informed trade decisions farther out.

    If they mess up or an unforeseen event happens and they don’t have enough energy bought for that time segment (forgot the term for a window of time they use), they have to go to the spot market which is where the prices fluctuate and can be many many multitudes higher than the rate the customers are contracted to pay.

    In a storm scenario or a freeze, it can be thousands of times more expensive because demand is so high and supply is so limited. This is when REPs go bankrupt if they don’t have the cash on hand.

    There are also insurance plans that the REPs pay for that cover very specific conditions for different types of events or outages that can kick in to cover the huge costs they would otherwise incur on their own buying electricity at that spot rate. I’ve known a few that were only able to stay operating because someone a few years prior had bought an insurance policy that covered said weather event.

    Griddy died because of the ice storm in Texas a few years ago and the huge costs people incurred. I actually met with their CIO the year prior as part of a technology assessment of their stack. Nice guy.

    Edit: also you can largely thank Enron and Rick Perry for deregulating Texas’ energy - which directly led to the terrible “performance” of the Texas grid during the winter storm Uri in 2021. Same for Enron in the constant blackouts in California in the early 2000’s.

  • cloud_herder@lemmy.worldtopolitics @lemmy.world•Nikki Haley: Texas has the right to secede from the United States if it wants to
    671·
    7 months ago

    Am Texan. While it’s a fun little thing to kind of be proud of - that Texas was its own country before joining the United States - we stopped being a country for a reason. And today we are 100% less capable of independence from the United States compared to then.

    We are taught “We can opt out of the United States whenever we want to. Other states can’t because they weren’t their own countries beforehand.” as a fun fact in 7th grade (Texas History) and no one seems to clarify that we can’t to the students or later in life when they’re grown ass adults. But by then, most refuse to believe it… like they do with most inconvenient facts.

    sigh.