Profits Over People: The Deadly Cost of Texas' Deregulated Energy Market

From Winter Storm Uri to Hurricane Beryl, the Texas energy market produces a pattern of failures.

Note: By now, everyone is aware of the events unfolding today with Trump in Pennsylvania. Thousands of online commentators are discussing it at the moment, and I’m not going to add to the noise. It should go without saying that political violence is not the answer. Meanwhile, hundreds of thousands of people in Houston are still without power—Texas is still in a crisis.

This morning, it was reported that three heat-related deaths had occurred in Houston due to power outages caused by Hurricane Beryl. The situation in Harris County is reminiscent of what we saw under Winter Storm Uri. There are still 576,000 homes without power, and we’re seeing reports of Houstonians sleeping in their cars to escape the heat as the outrage grows. While the temperatures have dropped slightly, they are still in the 90s.

Now, we’re hearing reports of angry people with guns pulling them on CenterPoint employees.

How is Texas the world’s energy capital, yet its biggest city has hundreds of thousands of people without power for five days?

The math ain’t mathing.

Where are the leaders of Texas while all of this is going on?

From Dan Patrick’s latest press conference:

This started when a White House spokesperson told the Houston Chronicle that officials had tried multiple times to reach Abbott and Patrick. Biden said he only connected with Patrick on Tuesday, after which he issued the disaster declaration.

This is how Dan Patrick responded:

Dan Patrick says President Biden called the TDEM (Texas Division of Emergency Management), not his cell phone. Patrick is the “acting” Governor and the only one authorized to request federal assistance (FEMA), which must be done before aid can be dispatched.

According to the law, it is the Governor’s responsibility to contact the President to request a major disaster declaration.

What happened is that after not being able to get in touch with Abbott and Patrick since they hadn’t reached out, Biden called the TDEM and then the Houston Chron to tell them he couldn’t get in touch with Abbott or Dan Patrick.

On Tuesday, according to the Houston Chron article, Dan Patrick’s staff members told them that Patrick had to assess the damage before making the request (not the process).

And Patrick’s supposed receipt that he was telling the truth and not a lie? TDEM Chief Nim Kidd’s phone log showed when the White House reached out to TDEM.

The so-called receipt Patrick provided didn’t prove whether he talked to anyone or if anyone had called his cell phone; it was unrelated. Likely, Nim Kidd is a friend of Dan Patrick’s and gave him the screenshot of the “official number” logged on to it to try and get him out of hot water.

Lt. Governor Dan Patrick took a $3 million bribe to acquit Ken Paxton and put a criminal at the top of Texas’ justice system. He’s already lost the trust of millions of Texans, yet he continues to lie in ways that are easy to debunk.

He didn’t stop there.

This is quintessential Republican gaslighting. Get caught lying, and then call everyone else a liar.

So, how did Lina Hidalgo get involved?

On Thursday, when Harris County’s FEMA request went through, Judge Hidalgo put out a statement thanking President Biden for his swift action.

Dan Patrick felt extremely butt-hurt when Hidalgo thanked the President instead of him, so he issued another statement.

It was me who made the request, Lina. I did it. Thank me.

The situation would be a lot funnier if people weren’t dying while our “acting” Governor charged on with his culture wars.

From Houston Public Media on Thursday: “The last conversation I had with Dan Patrick was years ago at a funeral while he stood next to me and said, ‘Sit down and shut up.’ And all I could think of saying was, ‘You shut up,’” Lina Hidalgo said.

That led to the video above when Dan Patrick said he called Hidalgo on Tuesday, and she said she “was good.”

Hidalgo appeared on News 88.7 on Thursday for a recovery coverage special after Hurricane Beryl to provide more updates and answer questions. She said she signed the disaster declaration before the hurricane landed in Texas.

Why is Dan Patrick the “acting” Governor?

Because our Governor is on an economic prosperity tour in Asia.

That’s right. As people in his state have been dying in the heat due to a lack of electricity for more than a week, our Governor is overseas touting how excellent Texas’ economy is.

Of course, as many of us here know, Texas has extreme wealth inequality. The wealthiest 1% of residents own nearly half of the state’s total wealth despite the state’s growing economy and population.

Jason Wells, CEO of CenterPoint, enjoys his 70° air conditioning.

This morning, a picture of Jason Wells sitting in front of a 70 ° thermostat made the rounds on social media, while notifications have been going out to Houstonians to keep their air at 78°.

This photo originated from the Houston Chron.

Friend of Lone Star Left,

Chris Tackett

, published CenterPoint’s donations this morning. It shouldn’t surprise anyone that Republicans are elbows-deep in CenterPoint’s pockets.

The CenterPoint Energy PAC has been investing in those in office and running for office in Texas. $910k just this cycle (1st pic), $1.55 mil since 2020 (2nd pic).

A deregulation disaster.

To understand the ongoing power crisis in Texas, we need to look at the roots of deregulation and how it has shaped the state’s energy landscape. In the early 2000s, Texas planned to deregulate its electricity market, promising competition and lower consumer prices. However, the reality has been starkly different.

CenterPoint Energy, one of the major players in this deregulated market, has benefited immensely from the lack of stringent regulations. Deregulation has allowed companies like CenterPoint to prioritize profits over reliability and investment in infrastructure. This approach has left the grid vulnerable to extreme weather events, as we have seen with Hurricane Beryl and previously with Winter Storm Uri.

A critical aspect of this crisis is the financial relationship between CenterPoint and Texas Republicans. The CenterPoint Energy PAC has poured money into political campaigns, ensuring that the voices in power remain friendly to their interests. Since 2020, CenterPoint has contributed $1.55 million to Texas politicians, with $910k in just this election cycle alone. This significant financial influence raises questions about the motivations behind the state’s regulatory (or lack thereof) decisions.

These contributions have created a cozy relationship between the energy giant and state officials, leading to a lack of accountability. Despite the evident failures in infrastructure and response, little to no action has been taken against CenterPoint. Instead, the company continues to operate without significant repercussions, enjoying record profits while the citizens of Texas suffer.

A series of targeted regulations could be implemented to ensure reliability and accountability.

First, reintroducing stricter oversight of energy companies, including mandatory investment in infrastructure improvements and maintenance, would help fortify the grid against extreme weather events.

Secondly, establishing clear performance and service standards with severe penalties for non-compliance would hold companies like CenterPoint accountable for extended outages and inadequate responses.

Additionally, creating an independent regulatory body to oversee the energy sector, free from political influence and corporate interests, would help ensure that decisions are made in the best interest of consumers. Transparency requirements for political contributions from energy companies would also help to mitigate undue influence on policy-making.

Finally, incentivizing the adoption of renewable energy sources and modernizing the grid to incorporate these technologies would enhance sustainability and reduce the state’s dependence on fossil fuels, providing a more resilient and diversified energy portfolio. These regulations would collectively help prevent future crises, protect consumers, and ensure a more stable and reliable power supply for all Texans.

Despite the massive failures of CenterPoint and the devastating human cost, Republicans in Texas remain staunchly opposed to implementing necessary regulations.

This unwavering stance is not surprising when considering who benefits the most from deregulation: their donors. The cozy relationship between energy companies and Republican politicians has created a system where corporate interests take precedence over the well-being of ordinary Texans. Deregulation has allowed these companies to prioritize profits without the accountability and oversight needed to ensure reliable and safe energy for all.

This dangerous cycle will only continue unless there is a significant shift in political leadership. The influence of big money in politics, particularly from the energy sector, has skewed priorities and policies, leaving ordinary citizens to bear the brunt of these catastrophic failures.

To break this cycle and create a system that truly serves the people, it is crucial to vote against Republicans up and down the ballot. Only by electing leaders committed to transparency, accountability, and the public good can we begin implementing the regulations necessary to prevent future disasters and protect the lives and livelihoods of Texans. The power to change this lies in the hands of the voters, and it is more critical than ever to make their voices heard.

Vote early, vote often, just vote.

• 115 days left until the November 5 election!

LoneStarLeft’s Newsletter is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

Follow me on Facebook, Twitter, TikTok, Threads, YouTube, and Instagram.