“You really not have addressed my criticisms about your accepting, at face value, climate alarmism, forced energy transformation, and a technocratic solution to the current grid problems brought on by the wind/solar takeover.” (Bradley to Kiesling, below)

“You clearly disagree with my synthetic theory of regulation and technological change. I synthesize institutional and transaction cost economics, Schumpeterian innovation economics, economic history, public choice, and yes, Austrian economics….. I think this theory … does a better job of helping us understand the institutional and organizational, and technological, reality of what’s feasible in liberalizing the electricity industry and its regulation.” (Kiesling to Bradley, below)

More than a century of increasing government intervention has created today’s crisis in electricity. It is not only a crisis of performance (affordability, reliability). It is a crisis where the cumulative interventionist process is now coming to your home or business.…

“… the economist is looking for the why-behind-the-why. And that is where negative pricing for wind and low margins in general from the regulatory setup ruined the economics of the [natural gas] industry, resulting in premature retirements, a lack of new capacity, and cost avoidance. Are you saying that there was a ‘market failure’ with natural gas in [the Texas blackout of February 2021]?” (Bradley to Kiesling, below)

She engages and then disappears. She is the “classical liberal” who refuses to question the climate alarm and favors the government-forced energy transformation to wind, solar, and batteries–and demand control from the political center. And she is all-in with the centrally planned wholesale power markets, better known as Independent System Operators and Regional Transmission Organizations (ISOs and RTOs).

She trumpeted the Texas ISO as the national model until it imploded in February 2021–and now blames natural gas, not wind and solar or central government planning.…

Ed Note: This (re)post from early 2015 by economist Michael Giberson, formerly at Texas Tech University, is reprinted below. While generic to pricing of any good or service in any emergency, it applies to Joe Biden’s recent concern about oil-price ‘gouging’ and calls from the Democrat leadership for FTC investigations into the same.

“Higher prices would discourage over-buying and help ensure that useful consumer goods get distributed to more households, not just the households best able to rush to the store. Consumer sentiment against higher prices during emergencies, by discouraging a price response and encouraging shortages, tends to put the burden of the shortages on those consumers least able to run to the stores in emergencies.”

When consumer demand shoots up and supplies are limited, either prices must increase or shortages will result.…

“By the end of the book, I could no longer shake the feeling she just might be right on the big thing. RTOs may be producing an increasingly fragile grid.”

Meredith Angwin’s Shorting the Grid is a likeable, sometimes irritating book. Or maybe an irritating, sometimes likeable book. I cannot decide. Angwin’s book offers an introduction to and assessment of the Regional Transmission Organizations (RTOs) that since the late 1990s have come to coordinate use of the transmission grid for about two-thirds of the electric power consumed in the United States.

Her view: RTOs are dominated by insiders who skew the system their direction at every chance, reaping profits while shirking responsibility for reliability. As a result we have an increasingly fragile, unreliable grid.

When Angwin’s book was published in 2020 it may have seemed alarmist.…