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submitted 8 months ago by DevCat@lemmy.world to c/politics@lemmy.world

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.

...

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.”

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[-] DevCat@lemmy.world 68 points 8 months ago

When you create an account with a utility, aren't you creating a contract with them? What happened to contractual duty?

[-] cerement@slrpnk.net 63 points 8 months ago

“We are altering the terms. Pray we do not alter them any further.”

[-] WhatAmLemmy@lemmy.world 9 points 8 months ago

"Well, in the land of the fee, your level of freedom is directly proportional to your wealth, and the corporations have... an ungodly amount of wealth... but you... you're a peasant... you understand?"

[-] BlueLineBae@midwest.social 1 points 8 months ago

"Damn you Deal-breaker Jones! That wasn't part of the deeeeeeal!!!"

[-] ShittyBeatlesFCPres@lemmy.world 29 points 8 months ago

I don’t think it works that way in Texas. There’s a layer of energy resellers who customers create an account with. Those resellers buy energy from the main utility companies and offer different plans. So, there’s no contract between consumer and generator.

[-] AlwaysNowNeverNotMe@kbin.social 43 points 8 months ago* (last edited 8 months ago)

Ah yes more middlemen with do nothing jobs ment to reduce corporate liability. The American dream.

[-] baldingpudenda@lemmy.world 23 points 8 months ago

Dont disparage what they do. They also add to the price so they can profit. Clearly, added value.

[-] BraveSirZaphod@kbin.social 1 points 8 months ago* (last edited 8 months ago)

It's a separation between power generation and power delivery. We have the same thing in New York. Someone has to own the actual delivery infrastructure, which in NYC is generally this company called ConEdison. They'll also provide the generate power for you, but you have the right to switch to other providers. For instance, I could switch to a provider that generated all power from renewable sources, though it is naturally more expensive.

[-] FlyingSquid@lemmy.world 6 points 8 months ago* (last edited 8 months ago)

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.

[-] BraveSirZaphod@kbin.social -1 points 8 months ago

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.

[-] Zorque@kbin.social 5 points 8 months ago

Someone has to own the actual delivery infrastructure,

Do they, though? I hear there's this neat thing called "public ownership" that works wonders for basic necessities like utilities. And that way you don't have someone scheming to profit off the things you need to stay alive.

[-] Uranium3006@kbin.social 5 points 8 months ago

During the Great privatization scam we are promised that the free market would somehow be magically more efficient but it turns out it was a just so they could show profit Hearing in the middle of stuff that had previously been free of it. Worst service and higher prices were universally the result because those profits have to come from somewhere and that'somewhere is you

[-] lolcatnip@reddthat.com 2 points 8 months ago

There are lots of examples of private companies working well as regulated monopolies. The key word is "regulated", though.

[-] BraveSirZaphod@kbin.social -2 points 8 months ago

I mean, that isn't incompatible with this system at all. Government ownership of the delivery system, which I'd fully agree is a good thing and one of the places where state ownership naturally fits, is still ownership.

The government generally isn't in the energy production business, so either they lock you into a monopoly with an energy producer, or you get to choose one. Either way, it's the same general system.

[-] Salvo@aussie.zone 1 points 8 months ago

We had a Internet Wholesaler in our previous residence who wanted to do the retail side as well. They had the monopoly on the estate we were in, so the ACCC forced them to break up.

With multiple retailers, we suddenly had much better customer assistance, but prices stayed the same.

[-] cerement@slrpnk.net 1 points 8 months ago

that and how many of their customers can afford (or have the spare time) for a contract lawyer?

[-] Darkassassin07@lemmy.ca 1 points 8 months ago* (last edited 8 months ago)

Ok, then sue the middlemen for failing to withhold their side of the contract.

They can deal with recouping the costs from their shitty suppliers.

They'll either pressure the suppliers into change, or go out of business handing the liability back to the suppliers.

[-] library_napper@monyet.cc -1 points 7 months ago

Wouldn't the energy broker company want to sue the generator then? Honestly they probably have better lawyers than their customers, anyway.

[-] Uranium3006@kbin.social 2 points 8 months ago

In my experience contracts are one-sided. The big corpo end of the contract basically has no real power over them but they sure can use their contract to fuck you little guy over. All the contract does is allow a corporation to use state power against you really. No contracts that's not between equals never truly be fair unless we were to have a public defender system for civil court

[-] library_napper@monyet.cc -1 points 7 months ago

Usually this is not the case when you bargin collectively.

this post was submitted on 19 Dec 2023
308 points (99.0% liked)

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