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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHis Lights Stayed on During Texas' Storm. Now He Owes $16,752.
https://www.nytimes.com/2021/02/20/us/texas-storm-electric-bills.html?action=click&module=Spotlight&pgtype=Homepage"My savings is gone, said Scott Willoughby, a 63-year-old Army veteran who lives on Social Security payments in a Dallas suburb. He said he had nearly emptied his savings account so that he would be able to pay the $16,752 electric bill charged to his credit card 70 times what he usually pays for all of his utilities combined. Theres nothing I can do about it, but its broken me.
Mr. Willoughby is among scores of Texans who have reported skyrocketing electric bills as the price of keeping lights on and refrigerators humming shot upward. For customers whose electricity prices are not fixed and are instead tied to the fluctuating wholesale price, the spikes have been astronomical.
multigraincracker
(32,532 posts)about those SS checks. NEXT.
magicarpet
(13,941 posts)Celerity
(42,673 posts)Rip their fucking guts out.
Goodheart
(5,264 posts)The blame lies ENTIRELY upon Republican deregulation.
Celerity
(42,673 posts)Journeyman
(15,001 posts)you're pretty much screwed from the outset, let alone in the quick.
drray23
(7,587 posts)let them fight it in court. At one point gouging is gouging.
XanaDUer2
(10,327 posts)BeyondGeography
(39,284 posts)drray23
(7,587 posts)i usually dont leave $16,000 in my checking account.
Skittles
(152,967 posts)ALWAYS make your own payments
soldierant
(6,648 posts)and he had that much available credit ...
Or, for that matter, if they had his checking account and he had overdraft protection ... which is what it sounds like, since he's saying he lost his savings.
Trueblue1968
(17,138 posts)soldierant
(6,648 posts)though it's easier if it's a credit card than if it's a bank account, but it still can be done.
treestar
(82,383 posts)contract about how they can raise the price, and this seems likely to have crashed that. He never agreed to pay an amount like that, is a likely argument.
Unless everyone in the state signs onto a contract with unlimited price raise without notice possible.
soldierant
(6,648 posts)Since the grid is Texas's pwn privatized grid. A few border towns, I gather, are not included in it.
ProfessorGAC
(64,427 posts)That's the problem with their system. Inherently flawed.
Prices can explode without any willful attempt by the provider to manipulate prices.
They have a fully independent state grid and they tossed the energy all(!) onto the commodity markets.
When supply drops, there are hundreds of speculators looking to profit by bidding up, hoping the actual price exceeds the price they paid. Some make big bucks, some get killed.
There's no one person or company setting prices so there's nobody to blame.
The system was set up for a disaster like this.
I agree with your outrage. But, I don't think there's anybody to sue.
I also agree that he shouldn't pay it. At some point, providers need to assume the risk of using this business model.
BeyondGeography
(39,284 posts)As the storm rolled through during the past week, however, she kept opening the companys app on her phone and seeing her bill just rising, rising, rising, Ms. Tanner said. Griddy was able to take the money she owed directly from her bank account, and she now has just $200 left. She suspects that she was only able to keep that much because her bank stopped Griddy from taking more.
Beartracks
(12,761 posts)TwilightZone
(25,342 posts)They're not the ones making the money. The companies they bought the energy from are the ones making the money.
Beartracks
(12,761 posts)TwilightZone
(25,342 posts)Griddy is still at fault, however, as far as I'm concerned. Signing people up for variable-rate contracts like this should be a crime. Variable-rate mortgages were a primary driver in the housing crisis and were mostly done away with as a result. This is a perfect example of why. They're great when rates are low but catastrophic when there are short-term spikes like this week.
LeftInTX
(24,560 posts)The Texas lege will probably get rid of it.
TwilightZone
(25,342 posts)Saw that in another article today. Their customers are the ones getting the big headlines "Texas man gets $8K bill" but they're only a tiny fraction of the total. Oncor, by comparison, has something like 3.8 million.
LeftInTX
(24,560 posts)Skittles
(152,967 posts)rpannier
(24,304 posts)XanaDUer2
(10,327 posts)brooklynite
(93,878 posts)XanaDUer2
(10,327 posts)smirkymonkey
(63,221 posts)Some of these people will never catch on.
Laelth
(32,017 posts)I cant feel sorry for these people. They were wrong yesterday, theyre wrong today, and, even when they get burnt by their beloved free market, they are likely to be wrong tomorrow.
Let them reap what they sow.
-Laelth
TwilightZone
(25,342 posts)It's the contract. The vast majority of electricity contracts are either a fixed rate or an indexed rate with hard rate caps. Griddy offers contracts that are apparently infinitely variable and tied directly to the wholesale rate. Great when rates are low; catastrophic when there are short-term spikes.
Variable rate contracts were a primary driver in the housing crisis and this is a perfect example of why they were almost entirely eliminated. I'm not sure why this is even allowed anymore. Deregulation, probably.
Had he been on a traditional contract, his rate wouldn't have changed. It might have changed at contract renewal, but most larger providers deal with natural disasters as part of normal operations and plan and budget accordingly.
rpannier
(24,304 posts)Low when plentiful, high when in crisis
Skittles
(152,967 posts)people who gambled on this tactic reasonably did not think of a bill going from, say 100 bucks to 17 thousand bucks.....that is just outrageous no matter what the circumstances
TheFarseer
(9,308 posts)Even Republicans know this is wrong.
Merlot
(9,696 posts)They do know a profit scheme when they see it.
moondust
(19,917 posts)Wouldn't be surprised if the GQP plan all along was to let private companies build flimsy utility systems to maximize profits for big shareholders and executives, then if those systems later fail let the federal gubment bail them out--again and again and again if necessary. Customers like Scott may have little choice but to pay whatever the scalpers charge because there are likely no competing utility companies to give them a choice and hold down prices.
intrepidity
(7,241 posts)They know that ultimately the Feds will bail them out.
tclambert
(11,080 posts)Maraya1969
(22,441 posts)I have no idea how they can but I hope they can figure out how to get these people out from the evil companies that are abusing them.
RockRaven
(14,784 posts)If you live in a place where the anti-regulation fetishists are in control, you have to be really fucking careful, and not just swallow every seemingly good deal hook, line, and sinker. There is ALWAYS a catch.
There are a lot of bad actors in this sad episode, none of which are these customers. But these customers served themselves up to the bad actors on a silver platter.
MerryBlooms
(11,728 posts)that's why they vote the way they do... Until that no regulation voting bites them in the ass. Many who got bit in the ass this time around, will vote for the same punishment again next election. I have wondered for many years, why people vote for creeps who admit they hate government, admit they won't work with government and will do their best to screw up government. Yeah, I'm gonna vote for that guy/gal! The one who's gonna sell me down the sewer to line their own pockets, and screw as many of their constituents on the way as they can! And, I'm going to vote for that sombeetch until the day I die. Came close this time around... HaHa... Where's my votin' card, Mabel? I gotta teach these doggone libruls a lesson.
Yo_Mama_Been_Loggin
(107,112 posts)After an Arlington man was hit with a $17,000 electricity bill and other Texans received bills in the thousands, Gov. Greg Abbott will have an emergency meeting with top-state officials to address the issue, he announced Saturday.
-snip-
Currently, the electric company Griddy is under fire after its customers are reporting having bills in the thousands because of the winter storm conditions. The company charges customers a $9.99 monthly fee and the cost of spot power traded on Texas electric grid based on the time of day they use electricity.
Ty Williams of Arlington, a Griddy customer who didnt lose electricity during the outages, was slapped with a $17,000 bill, KDFW reported. While DeAndre Upshaw of Dallas owed $5,000 to the company for his 900-square-foot, two-story townhouse, the Dallas Morning News reported.
Karen Cosby also had a $5,000 bill from Griddy, the DMN reported. Both Upshaw and Cosby are looking for a new provider.
https://www.yahoo.com/news/arlington-man-gets-17-000-192823631.html
monkeyman1
(5,109 posts)I LIVED THERE FOR 8 YRS & GOT THE HELL OUT ! I THINK WE SHOULD LET MEXICO HAVE IT BACK . THAT WOULD BE A GOOD START. WANT TO DROP OUT OF THE UNION ANYWAY, JUST DON'T GIVE THE BENEFITS OF BEING PART OF THE U.S.. SEE HOW LONG THAT SHIT LAST'S . ALL THEY DO IS BITCH ANYWAY! GOT SO DAMN TIRED OF LISTENING TO IT ALL THE TIME . ABBOTT IS DUMBER THEN HELL . REPUBLICAN PARTY IS MONEY MOTIVATED & COULD CARE LESS ABOUT PEOPLE , NEED TO GET THAT CLEAR IN THEIR HEADS. NOBODY IN GOVERNMENT WANT'S TO SAY " I SCREWED UP ". BUT, NOW WE HAVE TO LIVE WITH BULLSHIT !! I SAY " WRONG " - NO WE DON'T ! NEED A WHOLE BUNCH OF RESIGNATIONS & MOVE FOWARD. END OF STATEMENT !!!!
UpInArms
(51,253 posts)But I couldnt read past your first few words .... CAPS LOCK IS VISUAL SHOUTING
Please lower your text
ancianita
(35,816 posts)Takket
(21,425 posts)i live in Michigan and my energy company, DTE, has to propose rate increases to the state and have them approved, and i believe they only do that once a year. our rates don't fluctuate based on some open market demand.
how can Texas not have some sort of regulations in place to prevent things like this from happening? No one should have to pay a bill like that they cannot possibly anticipate and have no chance to stop? Is this all because they unregulated their power and let the "free market" set its own rate? If so, they are INSANE. But i'm sure, as rick perry said, they are all happy to not have "federal regulations" on their system. Pfffffffffffffft
monkeyman1
(5,109 posts)LymphocyteLover
(5,601 posts)LeftInTX
(24,560 posts)Who signed up for this Griddy thing
Autumn
(44,762 posts)because it was cheaper and easier. Til it wasn't. And Texans hate regulation. FREEDUMB!
yardwork
(61,418 posts)ancianita
(35,816 posts)The entire nation must learn that the price of deregulation Republicans is their owners now putting their boots on the necks of Texas voters.
UpInArms
(51,253 posts)SharonAnn
(13,767 posts)snort
(2,334 posts)No way no how uh uh never sorry nope. I'll face the huge inconvenience of logging in once a month and paying or, clutch pearls, writing a check.
ancianita
(35,816 posts)is time well spent. It is the upfront preventing of even more wasted time in resolving electronic 'error' disputes later.
Additionally, the only prevention of bank or vendor hacking is using the US mail, which makes any tampering of your checks, from you the payor to vendor, a federal offense. With the feds on your side, you've got legal leverage. Vendors and banks know this. No bank has ever refused me monthly paper statements and photos of canceled checks.
despite being pressured by the water utility, I refuse. You cannot pay online thru your bank, like I do other bills, so I mail a check quarterly. No auto draft bs
halfulglas
(1,654 posts)It's hard to even contest it if they already have your money from the credit card. But I don't know how they know what their their bills so quickly. If I had a 16,000 utility bill billed to my credit card it would probably be declined. This is so tragic. Like the guy said on another post or site, it's free market if it's a bagel or something you can do without. But a utility you need to survive. Nothing you need to survive should be tied to "free market." Whatever the market will bear is free market. Something that is needed for survival should be publicly owned and operated.
LuckyLib
(6,814 posts)and mail one to the governors office with a note attached that says I wont pay this.
(2) stop all auto-pay at your back and notify your bank that you will be changing banks unless such outrageous charges are removed get banks in on the inconvenience and outrage. If millions of Texans did active resistance, something would have to give. $$$ talks, even in Texas.
Our hearts go out to Texans struggling with an incompetent system. Oh, and no state income tax. The perfect storm in a natural disaster.
ancianita
(35,816 posts)1. Maybe one out of 19 refineries and 24 electrical companies might give you a lower price, but are not likely in your delivery region; or more likely, this company you refuse to pay just shuts off all your power, and won't turn it back on until it garnishes your wages.
2. Banks are no one's friend. Changing banks does no good because no banker will agree in advance to reimburse you for your autopay vendors' bills.
3. Refineries and electrical companies and banks own your governor.
Customers don't have the same recourse with corporations that they might have with a government owned utility, except by paying as much or more in legal fees as they've been gouged already in electrical fees. That's the legal recourse that corporations know is no recourse.
uncle ray
(3,153 posts)these people could have chosen to buy their electricity elsewhere. many less greedy people in Texax made much smarter choices given the options available.
i have sympathy for those who lost power. i do not for those who chose their supplier based on greed.
dflprincess
(28,057 posts)"burdensome regulation".
Though the whole situation in Texas merely proves my belief that another term for "deregulation" is "screw the consumer". Personally, I miss the days when the only way banks and airlines could compete was with customer service. And I'm glad I live in a state where the electric company is regulated by the Public Utilities Commission.
JI7
(89,182 posts)LeftInTX
(24,560 posts)twin_ghost
(435 posts)myself to your money.
AZ8theist
(5,339 posts)Texans can only blame themselves for continuing to vote Repuke.
Paxton? Abbott? LOUIE FUCKING GOHMERT?????
pazzyanne
(6,519 posts)everything IS bigger in Texas. Those bills are freaking nuts! I'll never complain about a $62 light bill again!!!!!!!!!!!!!!!!!!!!!!!
oasis
(49,152 posts)MoonlitKnight
(1,584 posts)And every other deregulation/ free market plan they have.
While capitalism is the most efficient economic system, it can be cruel and unfair. That is why it must be tempered with regulations and oversight. Add a bit of socialism to smooth out the fluctuations and you retain most of the efficiency without the extreme ups and downs and negative impacts. Most Republicans fail to learn that lesson.
intrepidity
(7,241 posts)(perhaps even giddy) when spot prices meant they were paying less than their neighbors. They probably bragged about it, too.
So when the market turns, even due to natural disaster, why are they the victims now?
I'm just saying that if you buy something with a variable rate, you win some and you lose some, it's gambling.
Right?
(I know it's harsh to say, and I feel terrible for what Texans are going through right now, but unless fraud is involved, that's how it works)