Tonight: A deep freeze sends Texas electricity prices soaring 10,000%; Citibank cannot repair a $500 million oopsie; and vegan KitKats at the moment are a factor. Let’s get into it.
Electricity prices spiked greater than 10,000% when the winter storm hit this week. There are blackouts throughout the state. More than 4 million Texans had been with out energy early Tuesday.
It’s putting that these energy outages are taking place in mighty Texas, the power powerhouse of America. A little bit of context:
- Texas produces extra electricity than another US state — producing nearly twice as a lot as Florida, the next-closest, based on federal statistics.
- Texas is the No. 1 state in each crude oil and pure gasoline.
- Wind energy can also be booming in Texas, which produced about 28% of all of the US wind-powered electricity in 2019.
So how did such a powerhouse get knocked so totally offline?
We could not know the total definitive cause for some time, however a number of issues are clear:
- Obviously, Texas winters ain’t often this chilly. The state’s infrastructure is just not ready for a deep freeze.
- Critics of renewables will attempt to blame wind generators, however specialists notice that wind makes up a small share of Texas’ power consumption.
- It’s additionally price poinitng out that a number of chillier locations have wind generators that do not buckle within the chilly — hey, Iowa; hej hej, Denmark — they simply have to be winterized, a step specialists stated Texas has skipped.
- The Lone Star State is … on their lonesome. Texas made a aware choice to isolate its power grid from the remainder of the nation. That implies that when issues are operating easily, it will possibly’t export extra energy to neighboring states. And within the present disaster, it will possibly’t import energy both.
In different phrases: “When it comes to electricity, what happens in Texas stays in Texas,” stated Dan Cohan, affiliate professor of environmental engineering at Rice University. “That has really come back to bite us.”
QUOTE OF THE DAY
To imagine that Citibank, probably the most subtle monetary establishments on this planet, had made a mistake that had by no means occurred earlier than, to the tune of almost $1 billion — would have been borderline irrational.
— US District Court Judge Jesse Furman
THE FOOD BUSINESS
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