Is there a ‘free market’ solution to the question of capacity incentives versus volumetric charges? I contend this the PUCT/ERCOT is in a central planner situation versus a true free market where integrated gas and power companies would solve the economic calculation problem, not state and federal regulators. More here: https://www.masterresource.org/texas-blackout-2021/central-planner-ercot-worked-as-planned/
Joseph Pokalsky: Integrated gas and power companies and gas companies are monopolies, don’t compete, and essentially tax ratepayers through rate setting by Public Service Commissions, a.k.a. Central Planning Committee Kommissors.
Robert L. Borlick: ERCOT is the furthest away from a central planning paradigm as any power system I know of. To argue that a free market consists of integrated gas/power companies is laughable. You don’t appear to understand the concept of a natural monopoly. As for the document you cited, it is a political rag that misrepresents the situation in Texas and unfairly blames Professor William Hogan for the irresponsible behavior of the Texas politicians.…
“’We fundamentally have to transform our economy in ways that are unimaginable to people who are over 40,’ Tomlinson said. ‘We have to cooperate, innovate and compromise, and most of all, we have to set aside our pride.’”
“[Tomlinson] said there is an unwillingness of pastors of all faiths to address climate change, knowing that many of their parishioners are involved in or invested in oil and gas.”
The Houston Chronicle business editorialist, Chris Tomlinson, is angry, impatient, and closed-minded when it comes to all things climate. A bona fide climate alarmist, he bullies the oil and gas industry to stop what they are doing. He wants Texans to stop eating meat to help save the planet. And he personally tells me in emails that I am not considered for his columns because I am critical about him (so be it).…
“Are RTOs central planning entities subject to the Mises/Hayek/Lavoie critique of access, pricing, and service quality? Is the ‘knowledge problem’ and ‘fatal conceit’ a defining issue for RTOs/ISOs compared to a private sector, unregulated approach to power coordination?”
“Vernon Smith: I don’t know”
It is a strange world in which a classical liberal espousing F. A. Hayek tries to justify a “market” based on a systemic violation of property rights and governmental central planning for an enormous territorial grid.
But this is the case with Lynne Kiesling, and maybe even Nobel Laureate Vernon Smith. I’ll let the reader decide from this social media exchange:
Kiesling: I’m pleased to report a new publication in the journal Energies, “Opening Up Transactive Systems: Introducing TESS and Specification in a Field Deployment,” available to read below.…