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Almost Fall – Texas Power Grid Update

How about this fall and winter?

Texas lawmakers say changes should provide protection for our Power Grid this winter, but other critical changes will be harder to execute.

A hearing this week in the State House Energy and State Affairs committees began with an optimistic report that the reliability reforms that were passed in Texas and implemented at the PUC & ERCOT are working. The state continues to switch from the old extra-electricity-when-needed (crisis-based) structure to a reliability-based model that focuses on keeping the lights, heat, and AC running.

Rules are in place to fine energy producers for non-compliance is up to $1,000,000 per day.

Nonetheless, the costs for winterization, inflation, and higher energy prices thanks to Russia are driving up delivery charges by some 50%. That doesn’t include the upcharges coming from REPs (Retail Electricity Providers) either!

It will be a burden on both commercial and residential electricity customers throughout Texas.

There is concern about additional changes to restructure how energy producers are compensated.

It could become a turf battle to determine if more power plants are built. But if the state doesn’t get companies to build new power plants, it doesn’t matter what is done in the legislature.

If additional generation capacity is not added to the grid, we’re going to be in great trouble.


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