Editor’s Note: This article covers a paper presented in June 2017 at the Stanford Center on Philanthropy and Civil Society’s fourth annual Junior Scholars Forum. The event brings together new researchers, including graduate students, postdoctoral fellows, and junior faculty, whose work covers civil society, the nonprofit sector, and philanthropy.

In 1999, Texas surprised the nation. Awash in oil money under Republican Gov. George W. Bush, it passed a groundbreaking electricity-restructuring...


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