Fermi Troubles: A Warning for the Texas Grid
“A properly functioning market … simply needs clear price signals, enforceable property rights, and the freedom for buyers and sellers to contract with one another…. The Public Utility Commission of Texas effectively imposed a $26.3 billion monopoly tax on Texans by overriding the market signals the Legislature had said should govern the system.”
Recent reports on the collapse of Fermi’s stock price should get the attention of anyone watching Texas’ rapidly growing demand for electricity. Here was a company promising massive new generation—tied to the surge in AI and data centers—only to see its stock price collapse. While Fermi may still succeed, there is a broader lesson for the Texas electric grid.
Texas needs more power. Projects like Fermi show the private sector is trying to respond. But too often, these efforts look like they are being forced to work around the grid rather than through it.…
The post Fermi Troubles: A Warning for the Texas Grid appeared first on Master Resource.
Source: https://www.masterresource.org/texas/fermis-troubles-warning-texas-grid/
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