(02-20-2021, 01:04 PM)mikesez Wrote:

(02-20-2021, 11:54 AM)SeldomRite Wrote: The power still costs the same amount to generate, responsive pricing is based on the misguided idea that people will use less power if the price goes up during times of intense demand, thus moderating that demand. Of course it's the same reason that medical costs aren't responsive to price changes, if it's a matter of life and death (which intense cold can be) then a person will literally agree to any cost to avoid dying. This is another reason why strong regulation is a much better solution in many markets than laissez faire.

Because so many power plants had to shut down as their pipes and other components froze, there was real scarcity in the supply of power. Demand was actually fairly stable because most people heat their homes with natural gas. But supply cratered.

Sure, but like I said, each amp of power still was being produced at the same cost that they were always being produced at by the generating facilities that were still online. The "surge pricing" is meant to try to moderate demand when there's more demand than capacity. Clearly it's not something that's going to work in life or death situations. It's for the same reason as when someone points a gun at someone and says give me everything you have, they usually get what they ask for. The whole idea that free markets can solve for scarcity of things required to keep living (like medical care) is obviously wrong.

---