The Texas Energy Crisis: Has Deregulation Hurt Consumers?


A winter storm in mid-February left Texans devastated, having caused billions of dollars in damage, massive air pollution, and preventable fatalities all leading back to the state’s uniquely independent and deregulated energy sector and lax oversight from the Electric Reliability Council of Texas (ERCOT). This case reviews Texas’s energy arrangement and ask students to discuss how it contributed to the crisis, whether it benefits or hurts consumers, and what the state’s next best steps are to establish a sustainable energy infrastructure.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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