Highly uncommon temperatures created a significant supply and demand imbalance that caused millions of individuals and businesses in the Texas, Kansas, Louisiana, and Oklahoma regions to go without power for several days this week. The extent of the overall damage is still not known.
We estimate costs, at the low end, could amount to $25-50 billion. It is likely a significant amount of federal and state aid or relief in different forms could be needed in the wake of this week’s events.
