Question about the price gouging in Texas that the billionaires are bragging about

[TwilightZone]

13. Yeah, could certainly happen.

For some providers, some of it could very well be passed along. But, natural disasters are a known issue and these spikes are part of doing business in areas prone to them, and the bigger providers are more likely to be able to absorb them without big rate increases. Also, most consumers are on fixed-rate plans or plans that have rate caps, and many of them are on yearly contracts, so they won't see increases until they renew, if then.

The ones getting the most attention, of course, are headlines like "Texas man receives $8,000 bill". In his case, he signed up for a variable-rate plan that linked his costs directly to the cost the utility pays. Really, really bad idea and I'm surprised that they're even allowed to offer a plan that like.

Basically, nobody does that anymore, and his situation is exactly why. Variable-rate plans were a major factor in the housing crash. People would sign up when rates were low and then get buried by rate increases. It's a small company with a limited number of customers (thankfully), but I guarantee it's going to get all the press. And maybe go bankrupt.

My guess is that they'll settle with their customers and they'll only pay a fraction of the total, but that's just a guess and assumes they could absorb some of the costs. The company actually recommended that their customers find another provider in the short term.