Ezra's Bookshelf

Shorting the Grid

by Meredith Angwin · 440 pages

Shorting the Grid argues that America's electrical grid is heading toward reliability failure due to policy decisions prioritizing cheap wholesale prices over dependable supply. Meredith Angwin, a physical chemist who spent years in the electric power industry, explains how restructured electricity markets, designed by economists who never ran power plants, have created perverse incentives that punish reliable generation. The book focuses on Regional Transmission Organizations that coordinate wholesale markets across multiple states, showing how their auction structures and five-minute pricing encourage plants to reduce maintenance, discourage new investment in baseload capacity, and penalize generators that must be available all the time rather than just when prices spike. Angwin traces how these arcane market rules—developed in closed meetings largely invisible to the public—have pushed nuclear plants toward closure, left grids dependent on just-in-time fuel deliveries, and created conditions where extreme weather can cascade into widespread blackouts. The book is technical but written for general readers who want to understand why the lights might go out. For anyone concerned about grid reliability—particularly as electrification of transportation and buildings increases demand—Angwin provides detailed analysis of policies that need reform.