Posts Tagged ‘Regulation’

Interview with TPPF’s Katie Tahuahua On The Texas Winter Storm Energy Crisis

Wednesday, February 17th, 2021

I reached out to the Texas Public Policy Foundation’s energy expert Katie Tahuahua about the dire energy problems brought about by the huge winter storm, here are her answers:


1. The Texas Interconnect Grid is a separate grid from the U.S. Eastern and Western Interconnect grids. What advantages and disadvantages does this provide for Texas energy consumers?

KT: The advantage of Texas having its own electric grid is that our communities aren’t affected by poor policy choices in other states we have no control or accountability over. However, it also means we must bear the full costs of our choices and feel the full brunt of crises like the blackouts across the state this week.

2. What role does ERCOT serve in managing the Texas Interconnect grid?

KT: The Electric Reliability Council of Texas (ERCOT) manages the Texas Interconnection Grid — although, unfortunately, the “Reliability” in its name has now been called into question.

3. The current wave of extreme cold was forecast in advance. Why were so many electricity-producing entities caught off-guard?

KT: There are two problems here. The first is that ERCOT waited too long to initiate conservation measures to meet increased demand as the weather turned colder. However, this delay wouldn’t have been a problem at all had Texas not put so many eggs in the renewable basket. Instead of adding more reliable fossil fuel generation to the grid over the last few years to keep up with our growing population and electricity demand, we’ve closed over 3,000MW in natural gas and clean coal and instead added 20,000MW of unreliable wind and solar to the grid. Unfortunately, all that wind and solar was barely generating when Texans needed it most. By Monday morning, half of Texas’ wind turbines were frozen solid and total wind generation bottomed out at 2% capacity by Monday night. Because of this massive gap in wind production and ERCOT’s delay, what should have been a series of brief rolling blackouts — inconvenient but manageable — instead turned into millions of Texans left in the cold and without answers.

4. What, if any, role has ERCOT’s demand pricing policies played in helping create the current crisis?

KT: ERCOT does not currently have demand pricing policies. While voluntary demand pricing programs could help prevent situations like this, any regulatory solution should place the cost of ensuring reliable electricity on the generators where it belongs, not on the customers.

5. A great number of Austin households are without power right now. Has Austin energy performed notably worse than other government power entities, and what policies have contributed to making the situation worse?

KT: Anecdotally, we know that there are communities in several areas of the state still without power. It does not appear that the blackouts are worse in Austin than anywhere else. However, Austin’s boisterous promotion of unreliable renewable energy — and their expensive failed efforts to use it — have reduced reliability for their customers and for the broader Texas grid. Unfortunately, San Antonio and CPS Energy are going down the same path that will put their ratepayers on the hook for $1 billion and further jeopardize the security of our grid.

6. How much, if any, has the push for “renewable” energy courses like wind and solar contributed to the current energy difficulties in Texas?

KT: It’s clear that policy decisions favoring unreliable wind and solar energy made blackouts such as this inevitable at some point. The severity of this blackout could have been reduced had ERCOT acted more swiftly — but it never would have been an issue had our grid not been so deeply penetrated by unreliable energy sources that contribute the least when they are needed the most, yet are propped up by billions in taxpayer-funded subsidies every year.

The Texas Legislature should end these subsidies and require all electric generators to guarantee a certain amount of “dispatchable,” or readily available, power to the grid at all times. The Texas Public Policy Foundation and our Life:Powered initiative will be working closely with the legislature to preserve Texans’ access to affordable, reliable electricity no matter the weather.


Thanks to Katie Tahuahua for taking the time to answer these questions.

Today is the first time in almost a week that the temperature is going to get above freezing…

TPPF’s Chuck DeVore on Reasons Behind The Texas Blackouts

Tuesday, February 16th, 2021

Some brief background on why so many Texas households suddenly seem to be without power:

Expect more on this subject in the near future.

GameStop Short Sellers Refusing To Fold?

Saturday, January 30th, 2021

You might think that, having suffered billions in losses, hedge funds would want to get out of the GameStop short-selling game.

You’d be wrong.

The astronomical rally in GameStop has imposed huge losses of nearly $20 billion for short sellers this month, but they are not budging.

Short-selling hedge funds have suffered a mark-to-market loss of $19.75 billion year to date in the brick-and-mortar video game retailer, including a nearly $8 billion loss on Friday as the stock kept ripping higher, according to data from S3 Partners.

Still, short sellers mostly are holding onto their bearish positions or they are being replaced by new hedge funds willing to bet against the stock. GameStop shares that have been borrowed and sold short have declined by just about 5 million over the last week, marking an 8% dip in the short interest, according to S3. Most of the short covering occurred on Thursday, when the stock fell for the first time in six days.

“I keep hearing that ‘most of the GME shorts have covered’ — totally untrue,” said Ihor Dusaniwsky, S3 managing director of predictive analytics. “In actuality the data shows that total net shares shorted hasn’t moved all that much.”

“While the ‘value shorts’ that were in GME earlier have been squeezed, most of the borrowed shares that were returned on the back of the buy to covers were shorted by new momentum shorts in the name,” Dusaniwsky added in an email.

Shares of GameStop were back up Friday after Robinhood and other retail brokers allowed trading to resume.

The borrow fee on GameStop’s stock — or the cost-to-borrow shares for the purpose of selling them short — jumped to 29.32% on existing shorts and 50% on new short positions, S3 said.

“If most of the shorts had covered, we would not be seeing stock borrow rates at these high levels — by now you would be able to borrow GME stock at single digit levels due to an increase in the lendable stock loan supply due to borrowed shares being returned after all the ‘supposed’ buy-to-covers,” Dusaniwsky said.

GameStop remained the most-shorted name in the market as short interest as a percentage of shares available for trading stands at 113.31%, S3 said.

(Supposedly Melvin Capital and Citron are out of their GameStop short positions. So who is still in?)

Assuming all the above is true, the remaining hedge funds and their allies are still shorting more than 100% of the stock, despite the theoretically infinite risk involved. I can think of several theories to explain what appears to be apparently irrational behavior:

  1. Short sellers fully expect their friends in the Biden Administration and/or the financial regulatory apparatus to come to their aid and extricate them from the bind they’ve put themselves into by suspending or changing the rules. Huh. I wonder why they could possibly think that?

  2. Short sellers expect to use their power to force trading companies to bend to their will by forcing retail investors to sell their shares (as Robinhood was reportedly doing on Thursday).
  3. Short sellers expect one or more “whales” (i.e., rich individual investors) to flip and either sell their shares or lend them out to cover shorts once the temptation to take profits is too great.
  4. Deeper-pocketed short sellers expect the squeeze to force weaker rivals out of the game, either taking huge losses to liquidate their positions or going bankrupt. In either case, they expect this winnowing to drop shorted shares below the 100% threshold, relieving the pressure on the shorts for the remaining short sellers.

Obviously, it could also be a combination of all these. (Or something else; feel free to float other theories in the comments.)

It’s the first two possibilities that should worry us from a policy position: If the big players can break the rules at will to reverse their fortunes when they’ve been beaten at their own game by the little players, then it’s not a free market. And if it’s not a free market, what’s to keep ordinary Americans from getting out of the game entirely?

(Hat tip: Director Blue.)

Joe Biden vs. American Oil Industry Jobs

Monday, January 25th, 2021

The Biden Administration is wasting no time in declaring war on America’s oil and gas industry:

  • Biden revoked permits for the Keystone XL pipeline, killing thousands of jobs.
  • He rejoined the job-killing Paris Climate Accord. The Paris Climate Accord has never been submitted to the senate for ratification, so how could it be constitutionally binding?
  • Despite protestations to the contrary, he wants to end fracking.
  • Biden has suspended oil and gas permitting on federal land for 60 days. Presumably some will be allowed to proceed once it’s made clear which Democrats will need to be bribed for the privilege…
  • New Mexico official says they’re shocked by Biden’s actions on federal land permits.

    Some New Mexico officials are now trying to defend themselves by saying they didn’t anticipate the new President would issue such a ban, but such protests ring rather hollow given that they most assuredly did understand that Biden plans to move ahead with his fracking ban, which would for all intents and purposes have the same effect. After all, virtually 100% of the drilling activity in southeast New Mexico targets the various shale formations in the Delaware Basin, and all shale wells require a frac job in order to be productive. Thus, a ban on fracking is the same thing as a ban on leasing and drilling.

  • Total job losses for all of Biden’s anti-energy policies could add up to 1 million jobs. (Hat tip: Director Blue.)
  • And many of those job losses will be in Texas:

    in Texas, where small, independent operators play a significant role in oil production, Biden’s policies could pack more of a punch.

    Among Biden’s policy proposals:

    • Required disclosure of climate risks from public companies.
    • A commitment to end new drilling permits for federal lands.
    • A pledge to eliminate tax subsidies for the oil and gas industry.

    “To the extent that there will be effects, those effects would be felt primarily by smaller producers,” said Sheila Olmstead, professor of public affairs at the LBJ School of Public Affairs at the University of Texas. She served as the senior economist for energy and the environment at the President’s Council of Economic Advisers under President Barack Obama.

  • Why settle for low-cost, reliable energy sources that provide high-paying, blue collar American jobs when there’s so much virtue signaling and graft to be had in Green New Deal pork?

    Austin Update For January 17, 2021

    Sunday, January 17th, 2021

    Austin news has been accumulating in heaps in drifts like trash strewn from a homeless encampment in a public park. So let’s grab a shovel:

  • First up: the case of the missing $6 million:

    More than $6 million in taxpayer money flowed to Austin nonprofits affected by the COVID-19 pandemic, but taxpayers might never learn the identities of the organizations that got the money or get a chance to dig into their stated need for assistance.

    Citing a little-known state law that government transparency experts are only now learning exists, the city has refused to turn over a list of the 365 nonprofits that were granted the funds.

    The $6 million was funneled through the city from the federal government and distributed out of the Austin Nonprofit and Civic Health Organizations Relief fund, more commonly known as the ANCHOR fund.

    On Oct. 19, the American-Statesman requested a list from the city of the fund’s award recipients. On Nov. 16, the city denied the newspaper’s request, saying in a letter to Texas Attorney General Ken Paxton that it thought the information was exempt from public disclosure and requested that Paxton’s office affirm that determination.

    The law invoked by the city’s legal department, House Bill 3175, went on the books after the 2019 Texas legislative session.

    Filed by state Rep. Joe Deshotel, D-Beaumont, the bill made confidential the name and other identifying information of individuals and businesses that apply for state or federal disaster recovery funds. The definition of disaster, as spelled out in the law, includes such things as floods, earthquakes and hostile military action. It also includes epidemics, such as the COVID-19 crisis.

    The disclosure of federal relief dollars is not exempted from public records if the money is awarded by the federal government. For example, news organizations, including the Statesman, have obtained through public records the names of businesses that received financial assistance through the federal Paycheck Protection Program.

    But under the new state law, Austin was able to withhold the identities of businesses that received assistance from the ANCHOR fund because the money, although originally from the federal government, went to the city before it was distributed to the nonprofits.

    I just naturally assume the money was handed out as graft to members of the Homeless Industrial Complex, Greg Casar’s leftwing cronies, and various antifa/#BlackLivesMatter riot instigators (I’m sure there’s a lot of overlap between those categories).

  • Speaking of the homeless, Austin’s homeless situation continues to get even more out-of-hand. “It’s not uncommon to walk out the door and find a pile of human feces on the patio behind us.”
  • A close, personal look at the problem:

  • If you live in Austin, you have until tomorrow (Monday, January 18) to sign the petition to reinstate the homeless camping ban. Go here to sign the petition.
  • There’s also a petition drive to recall various City Council members who reinstated the homeless ban. But you have to live in their respective districts to sign the petition.
  • I know you’re going to be shocked, shocked to find out that the City of Austin give preferential treatment to leftwing businessesin the form of property tax breaks…including one for Mayor Steve Adler’s own law firm.
  • Matt Mackowiak and Brad Johnson discuss the Austin homeless problem.
  • As the cherry on top, the City of Austin’s Stage 5 Wuhan coronavirus restrictions are still in effect through February 16…

    Joe Rogan and Doctor Mark Gordon on California’s Lockdown Madness

    Monday, January 11th, 2021

    At some point I’m going to finish a full-blown Texas Vs. California update. But like every other blog post I’ve got in the works, it’s taking longer than usual to complete. So instead, here’s California-to-Texas refugee Joe Rogan interviewing fellow California-to-Texas refugee Dr. Mark Gordon, who specializes in recovering from traumatic brain injury and has a line of neutracuiticals about the many problems of California and how badly they’ve handled the lockdown.

    Austin Mayor Adler To Bar Owners: I Decree No New Year’s Eve For You! Governor Abbott: In a Pig’s Eye You Do!

    Wednesday, December 30th, 2020

    Because he just hadn’t done enough to bankrupt Austin restaurants and bars, Mayor Steve Adler decreed that would not be allowed to stay open past 10:30 PM on New Year’s Eve:

    NOW THEREFORE, I, MAYOR OF THE CITY OF AUSTIN, PURSUANT TO THE AUTHORITY VESTED BY TEXAS GOVERNMENT CODE CHAPTER 418, HEREBY ORDER,EFFECTIVE AS OF 10:30 P.M. ON DECEMBER 31, 2020, AND CONTINUING THROUGH 6:00 A.M. ON JANUARY 3,2021 THAT IN THE CITY OF AUSTIN:

    MODIFIED OPERATIONS FOR DINE-IN SERVICES

    SECTION 1. That the findings and recitations set out in the preamble to this ORDER are found to be true and correct and they are here by adopted and made a part hereof for all purposes.

    SECTION 2. Modified Operations for Dine-In Food and Beverage Services. Because the wearing of a face covering and physical distancing is not possible while individuals are seated together and dining, thereby increasing the risk of spreading the COVID-19 virus, a business must end indoor and outdoor dine-in food and beverage service at 10:30 P.M. but may continue to operate after 10:30 P.M. using drive-thru, curbside pick-up,take-out,or delivery service. Dine-in food and beverage service may resume beginning at 6:00 A.M.

    (All “WHEREAS”es and criminal penalties snipped, because it’s a PDF and all the letters run together into one giant German compound word, and it was a big enough pain reinserting the spaces into the excerpt above.)

    The reaction from Texas Governor Greg Abbott was swift:

    Hopefully this clarification about the limits of local government regulation will keep Adler from driving a few more establishments bankrupt…

    LinkSwarm for December 18, 2020

    Friday, December 18th, 2020

    Greetings, and welcome to another Friday LinkSwarm! On a personal note, I was just laid off from my Senior Technical Writer job, so if you have any leads in the department (for either Austin or remote work), drop me a line in the comments.

  • Russian hackers penetrated Austin city government:

    State-sponsored hackers believed to be from Russia have breached the city network of Austin, Texas, The Intercept has learned. The breach, which appears to date from at least mid-October, adds to the stunning array of intrusions attributed to Russia over the past few months.

    The list of reported victims includes the departments of Commerce, Homeland Security, State, and the Treasury; the Pentagon; cybersecurity firm FireEye; IT software company SolarWinds; and assorted airports and local government networks across the United States, among others. The breach in Austin is another apparent victory for Russia’s hackers. By compromising the network of America’s 11th-most populous city, they could theoretically access sensitive information on policing, city governance, and elections, and, with additional effort, burrow inside water, energy, and airport networks. The hacking outfit believed to be behind the Austin breach, Berserk Bear, also appears to have used Austin’s network as infrastructure to stage additional attacks.

    While the attacks on SolarWinds, FireEye, and U.S. government agencies have been linked to a second Russian group — APT29, also known as Cozy Bear — the Austin breach represents another battlefront in a high-stakes cyber standoff between the United States and Russia. Both Berserk Bear and Cozy Bear are known for quietly lurking in networks, often for months, while they spy on their targets. Berserk Bear — which is also known as Energetic Bear, Dragonfly, TEMP.Isotope, Crouching Yeti, and BROMINE, among other names — is believed to be responsible for a series of breaches of critical U.S. infrastructure over the past year.

    (Hat tip: Dwight.)

  • Illegal-immigrant caravans back on the way — and Joe Biden ‘invited’ them.” (Hat tip: TPPF.)
  • Alexandria Ocasio Cortez calls for Nancy Pelosi’s ouster as Speaker of the House.

    Representative Alexandria Ocasio-Cortez (D., N.Y.) called for new leadership to replace House Speaker Nancy Pelosi (D., Calif.) and Senate Minority Leader Chuck Schumer (D., N.Y.), in an interview with The Intercept aired on Wednesday.

    The remarks represent Ocasio-Cortez’s most direct challenge to current Democratic congressional leadership, and come a month after Michigan representative Elissa Slotkin vowed not to support Pelosi for another term as House Speaker. Pelosi is the only candidate for the position, but with Democrats projected to win at most 226 House seats, Pelosi can only lose eight Democratic votes to remain Speaker.

    I wonder: If enough of the hard left defects to keep Pelosi from one more term as speaker, might there be enough Democrats to vote for a moderate Republican as Speaker rather than being ruled by The Squad?

  • Another Obama-era crony green energy boondoggle goes bust:

    Move over, Solyndra. Another green boondoggle from the Obama era has failed, and taxpayers are out as much as $510 million. Late last week Judge Karen Owens approved a Chapter 11 plan of reorganization by Tonopah Solar Energy. Tonopah operated the Crescent Dunes solar plant in Nevada that received $737 million in guaranteed loans from the Obama Administration.

    The plan includes a settlement with the Department of Energy that leaves taxpayers liable for as much as $234.68 million in outstanding debt, but the total public cost is even higher. Crescent Dunes also received an investment-tax credit, and the 2009 stimulus legislation allowed it to receive a cash payment in lieu of credit. In 2017 the plant received more than $275.6 million from Treasury under the Section 1603 program, which it used to service its outstanding liabilities. So taxpayers already gave Crescent Dunes cash to pay off its taxpayer-backed loans.

    Snip.

    DOE expected Crescent Dunes to produce up to 482,000 megawatt hours every year, but the plant hasn’t produced that much energy in its lifetime. In 2019 Crescent Dunes’s hot salt tanks suffered what partial owner SolarReserve described as “a catastrophic failure” that has left the plant inoperable.

    Since molten salt is one of the key elements in many next generation nuclear plant designs, I searched online for pictures of what a catastrophic hot salt tank failure looks like, but I couldn’t find any.

  • Portland keeps letting Antifa run wild:

    Last week, Portland law ­enforcers raided a house that had for months been ­illegally occupied by trespassers affiliated with Black Lives Matter and Antifa. At the barricaded property, officers made arrests and found a stockpile of firearms.

    Under normal circumstances, the armed trespassers would be prosecuted, and that would be the end of the story. But in riot-plagued Portland, Oregon, things are very far from normal.

    The city’s “progressive” district attorney immediately dropped the charges against the occupiers, and their comrades soon sent in reinforcements to build a sprawling autonomous zone in the middle of a densely populated residential area.

    The militants called the place the Red House Autonomous Zone — named after the red-painted house occupied at the heart of the zone. In doing so, they took inspiration from the Capitol Hill Autonomous Zone in Seattle, Washington. During the summer, leftist extremists chased police out of a six-block area of the Emerald City and drew their own “borders,” complete with checkpoints manned by armed “security.” The three-week ­experiment in lawlessness ended in mass vandalism, ­attempted rape, multiple shootings and two homicides.

    Portland’s RHAZ is following in the same footsteps.

    The house at the center of the autonomous zone was occupied by members of the Kinney family and their allies. The Kinneys, who haven’t paid their mortgage since 2017, were evicted after a tortuous legal process. The fact that they own a second house nearby didn’t prevent the mixed-race Kinneys and their allies from claiming victimization by — you guessed it — “racism.”

    Soon after last week’s raid on the occupied house, some 100 Antifa comrades mobilized through social media to retake the space. “There is an active call for numbers, defensive gear and supplies and change of clothes,” tweeted Antifa group Youth Liberation Front.

    Within a few hours, the entire street was blocked off with stolen fencing, wood and junk taken from nearby homes. Some brought in power tools to reinforce the barriers. The militants laid out piles of rocks, metal spikes and glass bottles at strategic points to act as supply points for projectile weapons. They lined the road with impromptu “booby traps” — upward-facing nail strips, caltrops and more.

    Portland police officers tried to shut down the RHAZ early on, but they were attacked and chased away. Their police cruisers were smashed up; they didn’t return.

    “Those present at the barricades should leave it behind, put down your weapons and allow the neighborhood to return to peace and order,” Portland Police Chief Chuck Lovell asked the militants, who ignored his polite request.

    Portland residents should file federal civil rights lawsuits against Portland officials for equal protection violations. (Hat tip: Stephen Green at Instapundit.)

  • Plus Portland antifa are still the same scumbags:

    A serial sex offender and Black Lives Matter activist recently released from prison served a titular leadership role at the Antifa autonomous zone in north Portland.

    Micah Isaiah Rhodes, 27, was convicted of three counts of second-degree sexual abuse of minors in 2018. He was sentenced to two and a half years in prison after violating probation by being near children during an Antifa occupation of an Immigration and Customs Enforcement facility.

    (Hat tip: Director Blue.)

  • “Former [Andrew] Cuomo Aide Lindsey Boylan Alleges Governor Sexually Harassed Her For Years.” Hey, what do you want to bet that #BelieveAllWomen magically doesn’t apply to powerful Democrat yet again? For Reasons.
  • Rhode Island’s Democratic governor Gina Raimondo: “Don’t go out and wear a mask.” Four days later: Goes to a wine bar, doesn’t wear a mask. Laws are for the peasants, not the Democratic Party ruling class. (Hat tip: Andrew Malcolm.)
  • Dem. Rep. Tulsi Gabbard commits heresy against radical transgenderism, sponsers bill that would ban men from women’s sports.
  • Get woke, go broke. “Dismal NFL Ratings Force Networks To Renegotiate With Advertisers.”
  • Things look bad for movie theaters.
  • “Leader Of German Audit Watchdog Caught Trading In Wirecard Shares Before Collapse.”
  • If the MSM didn’t have double standards, they’d have no standards at all:

  • Camille Paglia unloads on academic leftism:

  • Over at Borepatch, there’s a swell story about Air Force Brigadier General James Maitland Stewart.
  • Eating chili peppers can extend your life. I’m going to live forever…
  • Cyberpunk 2077 sucked so bad on PS4 that Sony pulled it from the store and is offering refunds.
  • Zodiac killer cipher broken. Also consider this a reminder that Zodiac is one f David Fincher’s best films.
  • Speaking of great films: Ann Reinking, RIP. She was awesome in All That Jazz, one of the all-time great American movies.
  • Welcome BadBlue (by the same folks behind Director Blue) to the blogroll.
  • A first edition of The Federalist Papers sold at auction for $226,800.
  • The Flu would like a word:

  • Funny dog video:

  • “Chinese Spy Assigned To Date Eric Swalwell Begs To Be Sent To Labor Camp Instead.”
  • Like BattleSwarm? Consider hitting the tip jar:





    Rand Paul: No Evidence That Lockdowns Change Coronavirus Trajectory

    Tuesday, December 8th, 2020

    Republican Senator Rand Paul of Kentucky notes the obvious: Lockdowns don’t seem affect the infection trajectory of the Wuhan coronavirus:

    I don’t see any evidence that crowd control, hand washing, standing six feet apart, all these things they tell you to do, closing down the restaurants, closing down the schools: there’s no real evidence that they’re changing the trajectory of the disease. If you look at the incidence of Covid, it’s going up like this [hold his hand indicating the steep slope], it’s going up exponentially despite all the mandates. So those who say they’re [following] science just aren’t paying attention.

    Paul is in favor of the vaccine and against Joe Biden nominating California Attorney General (and pro-abortion radical) Xavier Becerra as head of the Department of Health and Human Services. “He’s way outside the mainstream.”

    Speaking of out of the mainstream, that’s also what Paul said about Georgia Democratic Senate candidate Raphael Warnock.

    California’s Coronavirus Policy In One Video

    Sunday, December 6th, 2020

    Democratic governors seem to be in a contest to see who can bankrupt the most businesses with heavy-handed coronavirus policy. They and their pals can break the rules and dine with lobbyists at swanky restaurants like The French Laundry while they drive your businesses into bankruptcy:

    And what does California get for all these lockdowns? The highest number of coronavirus cases in the country. For a virus that seems to have had no effect on the overall death rate in America.