[xur17]

But most electricity retailers just set a fixed price for electricity completely disconnected from the actual costs. I'm specifically wondering if it's possible to allow for wholesale purchasing, but set a cap at something like $10 or $100/kwhr - still crazy high, but keeping obscene rates away. Maybe let the customer choose what level of cap they want.

[SAI_Peregrinus]

Texas's rates were capped at $9/kwhr, so "$10 or $100/kwhr" certainly wouldn't keep the obscene rates away.

[tedunangst]

Why would anyone agree to sell you power at cost, unless the cost goes too high, and then sell it below cost?

[xur17]

Because in addition to receiving their at cost payment, they'd also receive a fixed monthly fee. The power supplier would essentially sell call options to the electricity retailer.

[nawitus]

By selling an insurance.