{"id":334174,"date":"2024-06-22T11:05:35","date_gmt":"2024-06-22T09:05:35","guid":{"rendered":"https:\/\/climatescience.press\/?p=334174"},"modified":"2024-06-22T11:05:38","modified_gmt":"2024-06-22T09:05:38","slug":"restoring-sanity-reliability-and-affordability-to-the-texas-electric-grid","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=334174","title":{"rendered":"Restoring Sanity, Reliability, and Affordability to the Texas Electric Grid"},"content":{"rendered":"\n
\"\"
Wind turbines in the Papalote Creek Wind Farm near Taft, TX. Monday, Oct. 28, 2013.<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Master Resource<\/a><\/p>\n\n\n\n

By\u00a0<\/em>Bill Peacock<\/a>\u00a0<\/em><\/p>\n\n\n\n

\n

\u201cTexas politicians have added at least $38 billion to the cost of electricity through higher bills or higher taxes since 2019\u2026. Retail rates haven\u2019t reached the level of New York ($0.24 per KWh) or California ($0.32), but Texas\u2019s rising $0.15 rate is disconcerting.\u201d<\/p>\n<\/blockquote>\n\n\n\n

With its grid overwhelmed by renewable energy, Texas is putting natural gas back in the game. The Public Utility Commission of Texas (PUC) has received 125 notices of intent that propose more than 55,000 megawatts<\/a> of new generation, most of it gas-fired.<\/p>\n\n\n\n

Texans should not be surprised at this turn of events. Generators are simply following the money. Taxpayer money, that is.<\/p>\n\n\n\n

Background<\/strong><\/p>\n\n\n\n

After Winter Storm Uri<\/a>, public pressure forced Texas politicians to wake up to\u2014though not confess\u2014the damage they had caused by throwing billions of taxpayer dollars at generation that only works when the weather permits. But rather than restoring grid reliability by ending subsidies for wind and solar farms, they started flinging taxpayer money at natural gas and other dispatchable generation.<\/p>\n\n\n\n

It is not going to work. The explosion of renewables<\/a> continues unabated despite the well-known fact that the reliability value of renewable energy declines<\/a> as its grid penetration increases. Subsidies for new natural gas generation and batteries may serve as a temporary band aid on ERCOT\u2019s reliability problem, but the only permanent result will be to make electricity more expensive for Texans.<\/p>\n\n\n\n

In fact, that is already happening. We are more than five years into an effort to make Texans pay higher rates to improve profits for generators, who have been trying since 2013<\/a> to convince policymakers that higher profits for them means more reliability for the grid. They got their first big payout in 2019 when the PUC made changes to a price adder (ORDC) that artificially increased electricity prices<\/a> by almost $4 billion. Since then, the ORDC has added another $7 billion<\/a> to electricity rates.<\/p>\n\n\n\n

The PUC struck again when its commissioners irrationally, and perhaps illegally<\/a>, intervened in the market during Uri to raise electricity prices to $9,000 per MWh when prices were about $2,400. This cost consumers at least $10 billion<\/a>. Either Gov. Greg Abbott or the Texas Legislature could have stopped or reversed this, but both failed to act.<\/p>\n\n\n\n

Last year was the most expensive yet for Texans. Another PUC market intervention (ECRS) created artificial shortages that caused prices to jump by $12 billion<\/a>. Then the Texas Legislature created, and Texas voters approved, the Texas Energy Fund<\/a> using $5 billion of the budget surplus (another $5 billion may be on the way next year). The Energy Fund is what has generators lined up at the PUC\u2019s doors to get billions through low interest loans, grants, and bonuses.<\/p>\n\n\n\n

Cost, Rate Inflation in Texas<\/strong><\/p>\n\n\n\n

Add it all up, and politicians have added at least $38 billion to the cost of electricity through higher bills or higher taxes since 2019.<\/p>\n\n\n\n

Electricity prices confirm the cost of these measures to Texas businesses and consumers. In the five years prior to 2019, wholesale electricity prices averaged $31.18<\/a> per MWh. Since then, prices averaged $76.14, or $53<\/a>, removing the effects of the PUC\u2019s actions during Storm Uri.<\/p>\n\n\n\n

Retail prices show the same trend. From 2014\u20132018, the average price for residential customers<\/a> was 11.3 cents per kWh. For the last five years, prices have averaged 12.72 cents. The latest data show March prices at 14.92 cents<\/a>, up 27% from 11.71 cents before Uri. Rates haven\u2019t reached the level of New York ($0.24 per KWh) or California ($0.32), but Texas\u2019s rising $0.15 rate is disconcerting.\u201d<\/p>\n\n\n\n

The recovery community defines insanity as continuing to do the same thing, while expecting different results. Since 2014, the reliability of the Texas grid has collapsed as federal, state, and local subsidies for renewables averaged $2 billion<\/a> a year. Over the next five years, subsidies for traditional and renewable subsidies are expected to average at least $6.4 billion.<\/p>\n\n\n\n

Policy Reform<\/strong><\/p>\n\n\n\n

The first step toward improving grid reliability is for the Texas Legislature to admit that the grid has become unmanageable, and making Texans pay more for electricity to increase the profits of generators will not fix the problem. From there, the solution is straightforward.<\/p>\n\n\n\n

The Legislature must demand that the PUC and ERCOT stop manipulating energy prices. They must end state and local subsidies for all sources of energy. Then they must require renewable energy generators to pay for the costs they are imposing on the grid because of federal subsidies. In other words, they must let competition work in the Texas electricity market.<\/p>\n\n\n\n

These measures will restore sanity, reliability, and affordability to the Texas grid. Texans would save billions, and one day would no longer be bothered by alerts to conserve electricity to keep the lights on when the wind stops blowing or the sun stops shining. We just have to take it one step at a time.<\/p>\n\n\n\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n\n\n\n

Bill Peacock is the policy director of the Energy Alliance. He has worked in and around the Texas Legislature for more than 30 years.<\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

With its grid overwhelmed by renewable energy, Texas is putting natural gas back in the game. The Public Utility Commission of Texas (PUC) has received 125 notices of intent that propose more than 55,000 megawatts of new generation, most of it gas-fired.<\/p>\n

Texans should not be surprised at this turn of events. Generators are simply following the money. Taxpayer money, that is.<\/p>\n","protected":false},"author":121246920,"featured_media":334176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691819240,691819691,691818181,691818577,691829335],"class_list":{"0":"post-334174","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-electric-grid","9":"tag-electricity-prices","10":"tag-renewable-energy","11":"tag-texas","12":"tag-winter-storm-uri","14":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/0rawImage.jpg?fit=2048%2C1077&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1oVU","jetpack-related-posts":[{"id":278560,"url":"https:\/\/climatescience.press\/?p=278560","url_meta":{"origin":334174,"position":0},"title":"Energy Emergency Alert! 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At the critical time of 7:25 p.m.\u2014when ERCOT issued its Energy Emergency Alert 2, solar generation had plummeted to 11.6 percent of expected summer capacity\u2014down from 86.9 percent just over two hours before.\u2026","rel":"","context":"In \"Electric Reliability Council of Texas (ERCOT)\"","block_context":{"text":"Electric Reliability Council of Texas (ERCOT)","link":"https:\/\/climatescience.press\/?tag=electric-reliability-council-of-texas-ercot"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0rawImage.jpg?fit=1200%2C631&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0rawImage.jpg?fit=1200%2C631&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0rawImage.jpg?fit=1200%2C631&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0rawImage.jpg?fit=1200%2C631&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/0rawImage.jpg?fit=1200%2C631&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":218860,"url":"https:\/\/climatescience.press\/?p=218860","url_meta":{"origin":334174,"position":1},"title":"Texas Grid Reliability: Gone with the Wind (and solar)","author":"uwe.roland.gross","date":"09\/14\/2022","format":false,"excerpt":"Texans can have an ample supply of reliable and affordable electricity if our politicians will get out of the way and let the Texas energy market do its job.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-714.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-714.png?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-714.png?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-714.png?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-714.png?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":423594,"url":"https:\/\/climatescience.press\/?p=423594","url_meta":{"origin":334174,"position":2},"title":"Storm Ferm: Remember Uri (centrally planned electricity \u2018transition\u2019 in Texas)","author":"uwe.roland.gross","date":"01\/28\/2026","format":false,"excerpt":"The current cold snap (\u201cwhere is global warming when you need it?\u201d) makes timely a review of the Texas electricity debacle of February 2021. This post by Robert Bradley, \u201cWind, Solar, and the Great Texas Blackout: Guilty as Charged,\u201d was originally published by the Institute for Energy Research. As of\u2026","rel":"","context":"In \"\u201cmagical thinking\u201d policymakers\"","block_context":{"text":"\u201cmagical thinking\u201d policymakers","link":"https:\/\/climatescience.press\/?tag=magical-thinking-policymakers"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMu-HDswPqIyehP8-4RzGuMHDhmGzIzkpUyFZjZRq3-DWOaMOGQkhsk8K_KbcJbjbI1ao49pVTdMG_5-kuwpPz1MJVAWvgYb7ls-pVrd0cM3bs2ppNwM5vmuKeCXRey.jpeg?fit=1200%2C707&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMu-HDswPqIyehP8-4RzGuMHDhmGzIzkpUyFZjZRq3-DWOaMOGQkhsk8K_KbcJbjbI1ao49pVTdMG_5-kuwpPz1MJVAWvgYb7ls-pVrd0cM3bs2ppNwM5vmuKeCXRey.jpeg?fit=1200%2C707&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMu-HDswPqIyehP8-4RzGuMHDhmGzIzkpUyFZjZRq3-DWOaMOGQkhsk8K_KbcJbjbI1ao49pVTdMG_5-kuwpPz1MJVAWvgYb7ls-pVrd0cM3bs2ppNwM5vmuKeCXRey.jpeg?fit=1200%2C707&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMu-HDswPqIyehP8-4RzGuMHDhmGzIzkpUyFZjZRq3-DWOaMOGQkhsk8K_KbcJbjbI1ao49pVTdMG_5-kuwpPz1MJVAWvgYb7ls-pVrd0cM3bs2ppNwM5vmuKeCXRey.jpeg?fit=1200%2C707&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMu-HDswPqIyehP8-4RzGuMHDhmGzIzkpUyFZjZRq3-DWOaMOGQkhsk8K_KbcJbjbI1ao49pVTdMG_5-kuwpPz1MJVAWvgYb7ls-pVrd0cM3bs2ppNwM5vmuKeCXRey.jpeg?fit=1200%2C707&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":224397,"url":"https:\/\/climatescience.press\/?p=224397","url_meta":{"origin":334174,"position":3},"title":"Lone Stars: Texans Count Colossal Cost of Wind & Solar \u2018Transition\u2019","author":"uwe.roland.gross","date":"10\/18\/2022","format":false,"excerpt":"Crushing power costs and power rationing follow wind and solar reliance, like night follows day. 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