Earlier quoted context omitted.
I think many energy companies would love (or at least not be opposed) to get a large amount of renewables and energy storage...etc. The problem is that doing so costs money (a lot of it) which means raising customer rates which are highly regulated. Many of those companies are still paying off coal assets and aren't allowed by regulators to retire those units until they're paid off even though they aren't economic an…
In deregulated power markets, which AFAIK covers a fairly large fraction of US electricity supply (including Texas) power generators are businesses like in any random industry. The transmission grid, otoh, is a natural monopoly and is tightly regulated (or outright publicly owned). In such markets, uneconomical units tend to be shut down fairly quickly. Which in the absence of a some type of price on carbon (be it a…
The other parts of the US participate in either ERCOT, CAISO, MISO, SPP, ISO-NE, PJM, or NYISO which all do commitment and dispatch. ERCOT is a little unusual as they don't co-optimize reserves in their real-time 5-minute market. Each of these markets has an independent market monitor that looks for participant gaming and other market anomalies. FERC mandated this after some heavy abuse in the north east from a utility where the fine was divided up and went to funding the market monitoring groups. Either this group or sometimes the market software itself looks for instances of market power being demonstrated. For example, if you're unit is sitting right on top of a congested area and your offer jumps up a certain percent, the software pushes you back to the approved offer that the market monitor verified is your true marginal cost. So the market is deregulated, but there is still plenty of regulation of a sort.
In a perfect market, yes you would have uneconomical units shut down quickly, but this isn't the stock market and there are many reasons why this doesn't happen all the time. Maybe you need it for capacity reasons (markets have rules on how much you need to reliably serve load or they even have capacity markets) as wind and solar aren't as reliable as thermal generation.