TEXANS Please share your experiences with TECH, during your difficult times.

[JethroB]

Telephone long distance competition was a clear winner for the consumer back in the 80s. It gave us MCI, Verizon, etc. Different animal somewhat to gas and electric I realize. 25 cents a minute down to a nickel or so before cell phones changed the world.

 

[two_bit_score]

What was the chance they elected to take?
Turning on their cook stove?
Having some heat in their house when pipes were freezing and temps in single digits?
This is a good example on why not to use automatic payment plans.

The risk was they elected to take a fluctuating rate based on market. Like a adjustable rate mortgage.

 

[two_bit_score]

The chance they took was their CHOICE to sign up for the variable rate plan. They didn't have to do that. It was their choice. The did it to save money. And they did save money on their electric rate. Right up to the point where they didn't.

Another example of this is what Joe Namath is pushing. The so called Part C or "advantage plan". The advantage plane in Medicare will save you money over buying a traditional supplement. Without a doubt. Provided that you do not become chronically ill. But at least the advantage plans have a "cap" which is called the total out of pocket for a period. But even at that, many customers come crying to us asking "is there any way I can get out of my advantage plan". The reason they want out is because of having to pay up to that "total out of pocket". And the reason for that is because they are chronically ill. And of course my answer is always "no, sorry we cannot help you". But to be STUPID enough to sign up for a variable rate electric plan with NO cap of any kind is just STUPID. Now we can use a different word if you like, maybe "Challenged" if that makes you feel better, but as far as I know "stupid is as stupid does".

Exactly right.

 

[goeduck]

The risk was they elected to take a fluctuating rate based on market. Like a adjustable rate mortgage.

Did I hear someone got a $16,000 automatic deduction from their account? Who would keep $16,000 in an account tied to an automatic deduction?

 

[two_bit_score]

Did I hear someone got a $16,000 automatic deduction from their account? Who would keep $16,000 in an account tied to an automatic deduction?

Havent heard that but wouldnt be surprised. I doubt having $16k in an account dedicated to auto paying multiple recurring bills is all that unusual but if there was no cap that would be the problem.

 

[Kyle_in_Tex]

Maybe the company that short sold Gamestop is trying to recoup their money.....

 

[STx]

What needs a revamp? Our whole economic system?
Many would say: “$16,000 bill, hey they provided electricity when there was a short supply and customer demanded it. That’s capitalism bud! Supply and demand! Don’t like it, move to a commie country! Maybe you’d like to live in some third world country that has hungry people , freezing in the cold without heat, water or fuel....err...never-mind the news here,..I mean one of those OTHER countries. We’re #1!, we’re #1, we’re #1!
When other companies realize how much they can gouge consumers in a crisis, the market will respond and more companies will winterize their generators so they too can gouge customers. The invisible hand of our great free market. Why, it’s the answer for EVERY problem.
What do you want? Regulation of monopolies (like utilities) by the Gubmint? Why, why, THAT’S SOCIALISM!
It’s important to remember those people without shelter, water or fuel represent Freedom!

(sarcasm)

Regulators were actually responsible for those high bills. DoE initially set pricing to $1,500Mwh for generation that caused a generator to exceed green emission standards. Later, the Public Utility Commission set a rate of $9,000Mwh for emergency pricing to reduce demand and kept it there long after we were back over 1Gw reserve power and should have been taken out of Tier 3 status. Griddy, the provider that passes on the wholesale rate, has filed suit agains ERCOT and the PUC over this, they responded by revoking their approval to trade on the grid. It’s a fuster cluck of epic proportions that was largely caused by political decisions made before and during the storm.

I’m fortunate that the county emergency services radio tower is on my land and therefore, I’m on the same electric feeder as it is so, I was spared the blackouts. Many in my area were on an hour, off 30-45m throughout and some had no power for a couple of days. There are still areas without water because of utility damages caused by the outages.

We had a low of 5 Monday morning and were below freezing for a full week. I got about 5” of snow Sunday night and then another 5” on Thursday.

 

[STx]

Texas woman whose electric bill soared over $9,000 files class-action lawsuit seeking $1 billion from Griddy.

Texas power outage: Lawsuit seeks $1 billion from Griddy over prices

She’s going to lose. Griddy did nothing wrong, they even warned people ahead of the storm that they should change providers before it hit. Additionally, there is a clause in their contract that allows a customer to lock their rate for up to 3 months. It’s not Griddy’s fault that customers didn’t heed the warning or read the contract and take advantage of the rate lock option. It’s really sad that an attorney would take this case. Really, if someone were to get sued, it should be the DoE and the PUC but, they’re government agencies so their exempt.

 

[MoKelly]

She’s going to lose. Griddy did nothing wrong, they even warned people ahead of the storm that they should change providers before it hit. Additionally, there is a clause in their contract that allows a customer to lock their rate for up to 3 months. It’s not Griddy’s fault that customers didn’t heed the warning or read the contract and take advantage of the rate lock option. It’s really sad that an attorney would take this case. Really, if someone were to get sued, it should be the DoE and the PUC but, they’re government agencies so their exempt.

The lawyers take the case hoping a judge will NOT dismiss the case as a matter of law. If the judge does not dismiss, it goes to a jury. At that point, who knows?

Most jury lawsuits are “settled” out of court. Defense doesn’t want to take the risk, doesn’t want to incur the legal costs, has more valuable things to do with their time - or all three.

MoKelly

 

[STx]

There's a better than 50% chance Griddy files for bk, especially since ERCOT has revoked their license to trade power. They're not going to be able to pay all the generator bills they've got coming with all the people that discontinued their auto-pay. I completely understand the game, I did a lot of work for PI and med mal attorneys, I just don't see this as being a risk worth advancing expenses on. When Griddy goes belly up, there will be no one to collect from.