Why Texas had catastrophic blackouts

Texas’ history of energy deregulationIn the 1990s, policymakers and special interests began advocating for the deregulation of Texas’ power sector. Persistent ties between Texas policymakers and the fossil fuel industryMajor fossil fuel players—including Enron, ExxonMobil, and Chevron—have made large financial contributions to Texas politicians for decades. ERCOT provides 90% of Texas’ electricity to some 26 million customers. Even accounting for inflation, that expenditure would have constituted a fraction of the $13.9 billion the Texas oil and gas industry paid in taxes and royalties alone just this past year, according to data from the Texas Oil & Gas Association. ConclusionThe extent to which the oil and gas industry shapes Texas’ electricity market borders on regulatory and state capture.