The power outage in Texas was bad, but the "hang over" effect is really going to hurt.
RETAIL DEFAULTS AHEAD
A quarter of about 100 retail providers in Texas are at risk of default on ERCOT’s multimillion-dollar service charges. Some may sell customers to larger firms to cover costs, stifling retail competition, said Mark Foster, a lawyer and former special counsel to the state’s Public Utility Commission.
“They call it the blood week,” said Foster, adding that one of his clients, electricity marketer Young Energy LLC, faced a $19 million bill for services that cost $37,000 the prior month.
“There will be a significant decrease in competition for the consumer,” he added.
Texas weekly power costs jumped to $50 billion from $5 billion because of higher electric and gas prices, even though more than 4 million people lost power, said Senator Nathan Johnson, who asked where the money went.