Almost three years since the deadly Texas blackout of 2021, a panel of judges from the First Court of Appeals in Houston has ruled that big power companies cannot be held liable for failure to provide electricity during the crisis. The reason is Texas’ deregulated energy market.
The decision seems likely to protect the companies from lawsuits filed against them after the blackout. It leaves the families of those who died unsure where next to seek justice.
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This week, Chief Justice Terry Adams issued the unanimous opinion of that panel that “Texas does not currently recognize a legal duty owed by wholesale power generators to retail customers to provide continuous electricity to the electric grid, and ultimately to the retail customers.”
The opinion states that big power generators “are now statutorily precluded by the legislature from having any direct relationship with retail customers of electricity.”
Maybe it works that way in NYC, but here in Indiana, I get one option for a power company. Power, gas, water, sewer, trash collection, all single option. And no, that single option is not a government one because I live outside city limits. Until they laid fiber in this neighborhood last year, I only had one option for internet too.
I won’t pretend to know the regulations in Indiana, but it’s also entirely possible that startup costs or market conditions there don’t really facilitate additional competitors. Utilities tend to become way less efficient as you get less dense, so I wouldn’t be surprised if you don’t really get much competition even if there aren’t strong regulatory barriers. The market being open doesn’t necessarily mean that it’s profitable.