Free Market Failure
Many economic theories assume that people are rational actors and that a free market will properly price everything. The problem is that the free market does not properly price extreme events nor does it properly price damage to the common good or long-term risks. A different assumption is that people are emotional and that markets are actually chaotic.
Many places have run with a "business friendly" environment which means that the government has not enforced long-term planning on businesses operating in the common area. The notion is that the "marketplace" will properly discipline businesses that do wrong. Unfortunately, history shows that the payback cycle can be far too long to discipline the businesses.
Without some external agency forcing companies to pay, it is always more profitable in the short run to ignore the risks of hurricanes, floods, earthquakes, ice storms, nuclear meltdowns, pollute the common areas with nuclear waste, acid rain, fine ash particulates, and pollute the ground water with mine waste, unsealed oil wells, heavy metal runoff, and animal waste. The costs can be delayed by decades so that other people pay the price, not the companies involved.
Using an assumption of emotional people and chaotic marketplace may offer a better understanding. Some chaotic systems operate around "attractor" points. If we plot the system on a graph, it looks like a cloud around those points. When the system bounces around one of those points, that can be approximated by a rational model. However, the system can suddenly switch to another attractor point. Often, this is because of some "perturbation" to the system. Sometimes, the system will bounce wildly during such a shift before settling down to a "new normal".
We can see how major events in history have caused such changes in our lives. In the last year, the pandemic has greatly affected many industries including hospitality, arts organizations, and the airlines. No sane person would call these effects "rational actions" for a "perfect pricing". It was a panic reaction with long-term reverberations.
Similarly, the market for electricity trading in Texas had a recent wild swing. The recent storms and cold snap radically impacted nearly everybody in Texas with rolling blackouts for hours. The spot price for electricity went from $50 to $9,000 per kwh.
Thinking of people as emotional beings who under react most times but overreact other times, the responses to events can be better understood. People do not want to be surprised by events. People do not want to be surprised by preventable failures of services they rely on. When there is such a major "perturbation", there is often a political fallout. We will never go back to how things were before the pandemic. Texas will make some changes to their electrical system because of this storm.