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Investigation: Waste of the Day – The Texas Grid Withheld Electricity, Costing About $8 Billion

By Adam Andrzejewski

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Investigation by Adam Andrzejewski originally published by and

In Texas, while the supply of electricity was ample this summer, prices soared, costing an estimated $8 billion over three months, The New York Times reported.

These artificial shortages in the Texas power grid were the result of the state’s market operator, the Electric Reliability Council of Texas, or ERCOT, withholding electricity supply from the market to create a reserve, which pushed up prices.

The prices of electricity shooting up helped power companies and people with solar panels who sell their power back, as well as cryptocurrency miners, who are able to take advantage of market fluctuations, The Times reported.

One cryptocurrency company, Riot Platforms, said it made more than $7 million in energy credits in August, the newspaper reported.

Of course, the losers are ordinary Texans who have to pay these high energy costs.

While most Texas consumers have fixed-rate retail contracts and haven’t seen the summer’s high prices yet, an economist predicted they would soon.

The new reserve program came as a result of the backlash over the 2021 winter storm when the power grid couldn’t handle freezing conditions. Blackouts killed more than 200 people statewide, and Gov. Greg Abbott later pushed for changes to prevent future failures.

While the Texas grid has had ways of providing extra electricity during an emergency, the new approach of holding power in a reserve launched in mid-June, where days later, the price spikes were clear.

One man, VJ Arizpe, installed solar panels connected to batteries at his home in Houston last year and noticed a very large jump in the prices he was getting for selling his power. He saw a price curve rising nearly vertically.

“ERCOT’s inability to keep a consistent grid has been really lucrative for me,” Mr. Arizpe said.

While the electric council said the summer’s activity had been “both desirable and intentional,” Tyson Slocum, who follows energy markets for Public Citizen, a nonprofit consumer advocacy group, said “This is a huge transfer of wealth,” The Times reported. “It’s going to end up in user rates at some point.”

Adam Andrzejewski – The #WasteOfTheDay is brought to you by the forensic auditors at

This article was originally published by RealClearInvestigations and made available via RealClearWire.

Deneen Borelli

Deneen Borelli is the author of Blacklash: How Obama and the Left are Driving Americans to the Government Plantation. Deneen is a contributor with Newsmax Broadcasting. She is a former Fox News contributor and has appeared regularly on “Hannity,” “Fox & Friends,” “Your World with Neil Cavuto,” and “America’s Newsroom.” She has also appeared on Fox Business Network programs “Making Money with Charles Payne,” “The Evening Edit with Liz MacDonald,” and “Cavuto: Coast to Coast.” Previously, Deneen appeared on MSNBC, CNN, the BBC and C-SPAN. In addition to television, Deneen co-hosted radio programs on the SiriusXM Patriot channel with her husband Tom. Recently, Deneen co-hosted the Reigniting Liberty podcast with Tom. Deneen is a frequent speaker at political events, including the FreedomWorks 9.12.2009 March on D.C. which drew a crowd estimated at over 800,000 people. Deneen is also an Ambassador with, a social media platform that promotes free speech, and with the America First Policy Institute (AFPI) which advances policies that put Americans first. Deneen testified before the U.S. House of Representatives Committee on Natural Resources in May 2011 and before the Ohio House Public Utilities Committee in December 2011. Previously, Deneen was a host, Outreach Director with overseeing its outreach program, a Project 21 Senior Fellow, and Manager of Media Relations with the Congress of Racial Equality (CORE). Prior to joining CORE, Deneen worked at Philip Morris USA for 20 years. During her corporate career at Philip Morris she worked in various positions, her last as Project Management Coordinator in the Information Management department where she was responsible for the department’s mandated quality processes, communications, sales information and database management. Deneen began her Philip Morris career as a secretary and advanced to positions of increasing responsibilities. Deneen worked full-time and attended classes at night for 11 years to earn her B.A. in Managerial Marketing from Pace University, New York City. Deneen served on the Board of Trustees with The Opportunity Charter School in Harlem, New York. She appeared in educational videos for children, worked as a runway fashion model, and auditioned for television commercials. Her interests include ancient history, pistol target shooting, photography, and volunteering at her church. Deneen currently resides in Connecticut with her husband Tom.

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