In the mid-70s, there was no state regulation of electricity in Texas. There was a federal law that required utility companies to have their own individual power systems physically connected. One company called Central and Southwest Corporation owned utilities outside of Texas. By not being connected across state lines, they were breaking one federal law. But if they connect, they break the Texas handshake agreement and put the whole state under federal jurisdiction.
Texas's energy grid is largely disconnected from the rest of the U.S. That led to disastrous consequences last year when the state's grid was overloaded during a winter storm. Back in the 1970s, one company attempted to change the system in a secret, middle-of-the-night operation.
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