His Lights Stayed on During Texas' Storm. Now He Owes $16,752.

[TwilightZone]

17. In this case, the problem isn't really the free market.

It's the contract. The vast majority of electricity contracts are either a fixed rate or an indexed rate with hard rate caps. Griddy offers contracts that are apparently infinitely variable and tied directly to the wholesale rate. Great when rates are low; catastrophic when there are short-term spikes.

Variable rate contracts were a primary driver in the housing crisis and this is a perfect example of why they were almost entirely eliminated. I'm not sure why this is even allowed anymore. Deregulation, probably.

Had he been on a traditional contract, his rate wouldn't have changed. It might have changed at contract renewal, but most larger providers deal with natural disasters as part of normal operations and plan and budget accordingly.