This is a great point regarding the Texas power grid.

The main point being brought up here is that the state’s electrical infrastructure was not equipped to deal with the extreme cold. The freeze over caused generators to shut down which coupled with the increased electricity load caused the power grid to become overwhelmed.<br><br>This can be seen as a case of price ceilings. Texas is the only state to have its own power grid as well as the only deregulated power grid. The main problem raised by this was that there was a price ceiling for electricity. The wholesale price for electricity during this shortage was capped at $9,000 per megawatt hour, the maximum possible price. <br><br>Had generators been able to charge as much as they wanted, then the price for electricity would have risen significantly higher than $9,000. This would have two effects. First is that it would have been an incentive for generators to keep their infrastructure running. There would be a lot of money to be made, so generators would do whatever they could to keep their generators on. The second is that it would have significantly reduced demand. The consumer price for electricity would have skyrocketed, so there would have been a lot of incentive for consumers to reduce energy usage. This would have helped to ensure that those who truly needed power were able to get access to some.<br><br>The price ceilings prevented this from happening and we are now seeing the results.