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To: RoseyT
"I don’t see how rolling blackouts = more money for the power companies. Wouldn’t they be making more by keeping the electricity on?'

The concept is known as "the Big Lie" and it's commonly used by regulated industries like utilities to raise rates. You induce a shortage, and then people won't complain when you ask to raise rates so that you can prevent another shortage. Water companies do it by draining reservoirs lower than they need to be. Then they have to ask people to conserve. Then they ask for rate hikes to expand their operations, using the shortages as proof they need to expand.

I don't know whether this is that or not. I'd understand if the power outages were caused by ice storms bringing down power lines. But to just say it's overloading the grid due to cold weather, when Northern States do just fine, raises questions.

109 posted on 02/02/2011 11:42:37 AM PST by DannyTN
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To: DannyTN

I just read that deregulation was passed here in 2002 and I saw several articles blaming it for our higher electricity rates.

I’m certainly not in a position to determine whether or not there really is a supply issue but this is from the Public Utilities Commission website:
A BLACK alert indicates that ERCOT has entered level 3 of its Energy Emergency Alert (EEA) and has initiated planned rolling outages in order to prevent an uncontrolled blackout. During a BLACK alert, customers need to reduce electricity consumption immediately to help reduce load.

What I DO know is that I would prefer rolling blackouts to total blackouts. So far, so good for us as we haven’t had any yet.


114 posted on 02/02/2011 12:07:47 PM PST by RoseyT (East Texas)
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