Republican House bill has heavy focus on nuclear power

By New York Times


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Badly outnumbered and months behind in the debate on energy and climate change, House Republicans are introducing an energy bill as an alternative to the Democratic plan barreling toward a House vote this month.

The Republican proposal, drafted by a group led by Representative Mike Pence of Indiana, leans heavily on nuclear power, setting a goal of building 100 reactors over the next 20 years. No new nuclear plants have been ordered in the United States since 1978 because of the high cost of construction and uncertainty about regulatory approval.

The bill also provides incentives for increased oil and gas production on public and private lands and offshore. It would also authorize oil drilling in the Arctic National Wildlife Refuge in Alaska, a focus of 30 years of controversy in Congress.

The Republican measure does not include any mandatory cap on emissions of heat-trapping gases, relying instead on nuclear energy, natural gas and renewable fuels like wind, solar and biomass power to reduce production of the gases, which have been linked to global warming.

“This is an alternative that takes us in the direction of energy independence and a clean environment without the national energy tax being offered by the Democrats,” Mr. Pence said.

At forums around the country, he said, people expressed a desire for more energy from domestic sources and concern about rising fuel prices. “A minority in Congress plus the American people equals a majority,” he said.

Republican officials said they were intending to offer the proposal, known as the American Energy Act, as a substitute for the bill sponsored by Representatives Henry A. Waxman of California and Edward J. Markey of Massachusetts, both Democrats. The Waxman-Markey bill has been through hundreds of hours of public hearings and committee deliberations and passed the Energy and Commerce Committee last month on a 33-to-25 vote.

The Democratic measure will be considered by other House committees in coming days, but Speaker Nancy Pelosi of California has made it clear that the bill is on a fast track to a vote in the full House before the July 4 Congressional recess. Committee leaders have been warned not to tinker too much with the substance of the 946-page bill, a product of extensive talks to win support from a number of Democrats worried about energy costs and job losses in their states.

Republican aides said they were hoping their bill would lure some of those Democrats away and give Republicans something to support, rather than simply opposing the Democratic plan.

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California lawmakers plan to overturn income-based utility charges

California income-based utility charges face bipartisan pushback as the PUC weighs fixed fees for PG&E, SDG&E, and Southern California Edison, reshaping rate design, electricity affordability, energy equity, and privacy amid proposed per-kWh reductions.

 

Key Points

PUC-approved fixed fees tied to household income for PG&E, SDG&E, and SCE, offset by lower per-kWh rates.

✅ Proposed fixed fees: $51 SCE, $73.31 SDG&E, $50.92 PG&E

✅ Critics warn admin, privacy, legal risks and higher bills for savers

✅ Backers say lower-income pay less; kWh rates cut ~33% in PG&E area

 

Efforts are being made across California's political landscape to derail a legislative initiative that introduced income-based utility charges for customers of Southern California Edison and other major utilities.

Legislators from both the Democratic and Republican parties have proposed bills aimed at nullifying the 2022 legislation that established a sliding scale for utility charges based on customer income, a decision made in a late-hour session and subsequently endorsed by Governor Gavin Newsom.

The plan, pending final approval from the state Public Utilities Commission (PUC) — all of whose current members were appointed by Governor Newsom — would enable utilities like Southern California Edison, San Diego Gas & Electric, and PG&E to apply new income-based charges as early as this July.

Among the state legislators pushing back against the income-based charge scheme are Democrats Jacqui Irwin and Marc Berman, along with Republicans Janet Nguyen, Kelly Seyarto, Rosilicie Ochoa Bogh, Scott Wilk, Brian Dahle, Shannon Grove, and Roger Niello.

A cadre of specialists, including economist Ahmad Faruqui who has advised all three utilities implicated in the fee proposal, have outlined several concerns regarding the PUC's pending decision.

Faruqui and his colleagues argue that the proposed charges are excessively high in comparison to national standards, reflecting soaring electricity prices across the state, potentially leading to administrative challenges, legal disputes, and negative unintended outcomes, such as penalizing energy-conservative consumers.

Advocates for the income-based fee model, including The Utility Reform Network (TURN) and the National Resources Defense Council, argue it would result in higher charges for wealthier consumers and reduced fees for those with lower incomes. They also believe that the utilities plan to decrease per kilowatt-hour rates as part of a broader rate structure review to balance out the new fees.

However, even supporters like TURN and the Natural Resources Defense Council acknowledge that the income-based fee model is not a comprehensive solution to making soaring electricity bills more affordable.

If implemented, California would have the highest income-based utility fees in the country, with averages far surpassing the national average of $11.15, as reported by EQ Research:

  • Southern California Edison would charge $51.
  • San Diego Gas & Electric would levy $73.31.
  • PG&E would set fees at $50.92.

The proposal has raised concerns among state legislators about the additional financial burden on Californians already struggling with high electricity costs.

Critics highlight several practical challenges, including the PUC's task of assessing customers' income levels, a process fraught with privacy concerns, potential errors, and constitutional questions regarding access to tax information.

Economists have pointed out further complications, such as the difficulty in accurately assessing incomes for out-of-state property owners and the variability of customers' incomes over time.

The proposed income-based charges would differ by income bracket within the PG&E service area, for example, with lower-income households facing lower fixed charges and higher-income households facing higher charges, alongside a proposed 33% reduction in electricity rates to help mitigate the fixed charge impact.

Yet, the economists warn that most customers, particularly low-usage customers, could end up paying more, essentially rewarding higher consumption and penalizing efficiency.

This legislative approach, they caution, could inadvertently increase costs for moderate users across all income brackets, a sign of major changes to electric bills that could emerge, challenging the very goals it aims to achieve by promoting energy inefficiency.

 

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BC Hydro says province sleeping in, showering less in pandemic

BC Hydro pandemic electricity trends reveal weekend-like energy consumption patterns: later morning demand, earlier evenings, more cooking, streaming on smart TVs, and work-from-home routines, with tips to conserve using laptops and small appliances.

 

Key Points

Weekend-like shifts in power demand from work-from-home routines: later mornings, earlier evenings, and more streaming.

✅ Later morning electricity demand; earlier evening peaks

✅ More cooking and baking; increased streaming after dinner

✅ Conservation tips: laptops, small appliances, smart TVs

 

The latest report on electricity usage in British Columbia reveals the COVID-19 pandemic has created an atmosphere where every day feels like a Saturday, a pattern also reflected in BC electricity demand during peak seasons.

BC Hydro says overall power usage hasn't changed much, but similar Ontario electricity demand shifts suggest regional differences, while Manitoba demand fell more noticeably, and a survey of 500 people shows daily routines have shifted dramatically since mid-March when pandemic-related closures began.

The hydro report says, with nearly 40 per cent of B.C. residents working from home, trends in residential electricity use confirm almost half are sleeping in and eating breakfast later, while about a quarter say they are showering less.

Those patterns more closely resemble what hydro says is typical weekend power consumption, and could influence time-of-use rates as electricity demand occurs later in the morning and earlier in the evening.

The report also finds many people are cooking and baking more than before the pandemic, preparing the evening meal earlier, streaming or viewing more television after dinner even as Ottawa's electricity consumption dipped earlier in the pandemic, and 80 per cent are going to bed later.

Although electricity use is normal for this time of year, hydro says homebound residents can conserve by using laptops instead of desktops, small appliances such as Instant Pots instead of ovens, and streaming movies or TV shows on a smart televisions instead of game consoles, even as Hydro One peak rates continue to shape consumption patterns elsewhere.

 

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Romania enhances safety at Cernavoda, IAEA reports

IAEA OSART Cernavoda highlights strengthened operational safety at Romania’s Cernavoda NPP, citing improved maintenance practices, simulator training, and deficiency reporting, with ongoing actions on spare parts procurement, procedure updates, and chemical control for nuclear compliance.

 

Key Points

An IAEA follow-up mission confirming improved operational safety at Cernavoda NPP, with remaining actions tracked.

✅ Enhanced simulator training and crew performance

✅ Improved field deficiency identification and reporting

✅ Ongoing upgrades to procedures, spares, and chemical control

 

The International Atomic Energy Agency (IAEA) said yesterday that the operator of Romania’s Cernavoda nuclear power plant had demonstrated "strengthened operational safety" by addressing the findings of an initial IAEA review in 2016. The Operational Safety Review Team (OSART) concluded a five-day follow-up mission on 8 March to the Cernavoda plant, which is on the Danube-Black Sea Canal, about 160 km from Bucharest.

The plant's two 706 MWe CANDU pressurised heavy water reactors, reflecting Canadian nuclear projects, came online in 1996 and 2007, respectively.

The OSART team was led by Fuming Jiang, a senior nuclear safety officer at the IAEA, which recently commended China's nuclear security in separate assessments.

"We saw improvements in key areas, such as the procurement of important spare parts, the identification and reporting of some deficiencies, and some maintenance work practices, as evidenced by relevant performance indicators," Jiang said, noting milestones at nuclear projects worldwide this year.

The team observed that several findings from the 2016 review had been fully addressed, including: enhanced operator crew performance during simulator training; better identification and reporting of deficiencies in the field; and improvement in maintenance work practices.

More time is required, it said, to fully implement some actions, including: further improvements in the procurement of important spare parts with relevance to safety; further enhancement in the revision and update of some operating procedures, drawing on lessons from Pickering NGS life extensions undertaken in Ontario; and control and labelling of some plant chemicals.

Dan Bigu, site vice president of Cernavoda NPP, said the 2016 mission had "proven to be very beneficial", adding that the current follow-up mission would "provide further catalyst support to our journey to nuclear excellence".

The team provided a draft report of the mission to the plant's management and a final report will be submitted to the Romanian government, which recently moved to terminate talks with a Chinese partner on a separate nuclear project, within three months.

OSART missions aim to improve operational safety by objectively assessing safety performance, even as the agency reports mines at Ukraine's Zaporizhzhia plant amid ongoing risks, using the IAEA's safety standards and proposing recommendations and suggestions for improvement where appropriate. The follow-up missions are standard components of the OSART programme and, as the IAEA has warned of risks from attacks on Ukraine's power grids, are typically conducted within two years of the initial mission.

 

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Ford's Washington Meeting: Energy Tariffs and Trade Tensions with U.S

Ontario-U.S. Energy Tariff Dispute highlights cross-border trade tensions, retaliatory tariffs, export surcharges, and White House negotiations as Doug Ford meets U.S. officials to de-escalate pressure over steel, aluminum, and energy supplies.

 

Key Points

A trade standoff over energy exports and tariffs, sparked by Ontario's surcharge and U.S. duties on steel and aluminum.

✅ 25% Ontario energy surcharge paused before White House talks

✅ U.S. steel and aluminum tariffs reduced from 50% to 25%

✅ Potential energy supply cutoff remains leverage in negotiations

 

Ontario Premier Doug Ford's recent high-stakes diplomatic trip to Washington, D.C., underscores the delicate trade tensions between Canada and the United States, particularly concerning energy exports and Canada's electricity exports across the border. Ford's potential use of tariffs or even halting U.S. energy supplies, amid Ontario's energy independence considerations, remains a powerful leverage tool, one that could either de-escalate or intensify the ongoing trade conflict between the two neighboring nations.

The meeting in Washington follows a turbulent series of events that began with Ontario's imposition of a 25% surcharge on energy exports to the U.S. This move came in retaliation to what Ontario perceived as unfair treatment in trade agreements, a step that aligned with Canadian support for tariffs at the time. In response, U.S. President Donald Trump's administration threatened its own set of tariffs, specifically targeting Canadian steel and aluminum, which further escalated tensions. U.S. officials labeled Ford's threat to cut off U.S. electricity exports and energy supplies as "egregious and insulting," warning of significant economic retaliation.

However, shortly after these heated exchanges, Trump’s commerce secretary, Howard Lutnick, extended an invitation to Ford for a direct meeting at the White House. Ford described this gesture as an "olive branch," signaling a potential de-escalation of the dispute. In the lead-up to this diplomatic encounter, Ford agreed to pause the energy surcharge, allowing the meeting to proceed, amid concerns tariffs could spike NY energy prices, without further escalating the crisis. Trump's administration responded by lowering its proposed 50% tariff on Canadian steel and aluminum to a more manageable 25%.

The outcome of the meeting, which is set to address these critical issues, could have lasting implications for trade relations between Canada and the U.S. If Ford and Lutnick can reach an agreement, the potential for tariff imposition on energy exports, though experts advise against cutting Quebec's energy exports due to broader risks, could be resolved. However, if the talks fail, it is likely that both countries could face further retaliatory measures, compounding the economic strain on both sides.

As Canada and the U.S. continue to navigate these complex issues, where support for Canadian energy projects has risen, the outcome of Ford's meeting with Lutnick will be closely watched, as it could either defuse the tensions or set the stage for a prolonged trade battle.

 

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Canada's nationwide climate success — electricity

Canada Clean Electricity leads decarbonization, slashing power-sector emissions through coal phase-out, renewables like hydro, wind, and solar, and nuclear. Provinces cut carbon intensity, enabling electrification of transport and buildings toward net-zero goals.

 

Key Points

Canada Clean Electricity is the shift to low-emission power by phasing out coal and scaling renewables and nuclear.

✅ 38% cut in electricity emissions since 2005; 84% fossil-free power.

✅ Provinces lead coal phase-out; carbon intensity plummets.

✅ Enables EVs, heat pumps, and building electrification.

 

It's our country’s one big climate success so far.

"All across Canada, electricity generation has been getting much cleaner. It's our country’s one big climate success so far,"

To illustrate how quickly electric power is being cleaned up, what's still left to do, and the benefits it brings, I've dug into Canada's latest emissions inventory and created a series of charts below.

 

The sector that could

Climate pollution by Canadian economic sector, 2005 to 2017My first chart shows how Canada's economic sectors have changed their climate pollution since 2005.

While most sectors have increased their pollution or made little progress in the climate fight, our electricity sector has shined.

As the green line shows, Canadians have eliminated an impressive 38 per cent of the climate pollution from electricity generation in just over a decade.

To put these shifts into context, I've shown Canada's 2020 climate target on the chart as a gray star. This target was set by the Harper government as part of the global Copenhagen Accord. Specifically, Canada pledged to cut our climate pollution 17 per cent below 2005 levels under evolving Canadian climate policy frameworks of the time.

As you can see, the electricity sector is the only one to have done that so far. And it didn’t just hit the target — it cut more than twice as much.

Change in Canada's electricity generation, 2005 to 2017My next chart shows how the electricity mix changed. The big climate pollution cuts came primarily from reductions in coal burning, highlighting the broader implications of decarbonizing Canada's electricity grid for fuel choices.

The decline in coal-fired power was replaced (and then some) by increases in renewable electricity and other zero-emissions sources — hydro, wind, solar and nuclear.

As a result, Canada's overall electricity generation is now 84 per cent fossil free.

 

Every province making progress

A primary reason why electricity emissions fell so quickly is because every province worked to clean up Canada's electricity together.

Change in Canadian provincial electricity carbon intensity, 2005 to 2017

My next chart illustrates this rare example of Canada-wide climate progress. It shows how quickly the carbon-intensity of electricity generation has declined in different provinces.

(Note: carbon-intensity is the amount of climate pollution emitted per kilowatt-hour of electricity generated: gCO2e/kWh).

Ontario clearly led the way with an amazing 92 per cent reduction in climate pollution per kWh in just twelve years. Most of that came from ending the burning of coal in their power plants. But a big chunk also came from cutting in half the amount of natural gas they burn for electricity.

Manitoba, Quebec and B.C. also made huge improvements.

Even Alberta and Saskatchewan, which were otherwise busy increasing their overall climate pollution, made progress in cleaning up their electricity.

These real-world examples show that rapid and substantial climate progress can happen in Canada when a broad-spectrum of political parties and provinces decide to act.

Most Canadians now have superclean electricity

As a result of this rapid cleanup, most Canadians now have access to superclean energy.

Canadian provincial electricity carbon intensity in 2017

 

Who has it? And how clean is it?

The biggest climate story here is the superclean electricity generated by the four provinces shown on the left side — Quebec, Manitoba, B.C. and Ontario. Eighty per cent of Canadians live in these provinces and have access to this climate-safe energy source.

Those living in Alberta and Saskatchewan, however, still have fairly dirty electricity — as shown in orange on the right — and options like bridging the electricity gap between Alberta and B.C. could accelerate progress in the West.

A lot more cleanup must happen here before the families and businesses in these provinces have a climate-safe energy supply.

 

What's left to do?

Canada's electricity sector has two big climate tasks remaining: finishing the cleanup of existing power and generating even more clean energy to replace fossil fuels like the gasoline and natural gas used by vehicles, factories and other buildings.

 

Finishing the clean up

Climate pollution from Canadian provincial electricity 2005 and 2017

As we saw above, more than a third of the climate pollution from electricity has already been eliminated. That leaves nearly two-thirds still to clean up.

Back in 2005, Canada's total electricity emissions were 125 million tonnes (MtCO2).

Over the next twelve years, emissions fell by more than a third (-46 MtCO2). Ontario did most of the work by cutting 33 MtCO2. Alberta, New Brunswick and Nova Scotia made the next biggest cuts of around 4 MtCO2 each.

Now nearly eighty million tonnes of climate pollution remain.

As you can see, nearly all of that now comes from Alberta and Saskatchewan. As a result, continuing Canada's climate progress in the power sector now requires big cuts in the electricity emissions from these two provinces.

 

Generating more clean electricity

The second big climate task remaining for Canada's electricity is to generate more clean electricity to replace the fossil fuels burned in other sectors. My next chart lets you see how big a task this is.

 

Clean electricity generation by Canadian province, 2017

It shows how much climate-safe electricity is currently generated in major provinces. This includes zero-emissions renewables (blue bars) and nuclear power (pale blue).

Quebec tops the list with 191 terawatt-hours (TWh) per year. While impressive, it only accounts for around half of the energy Quebecers use. The other half still comes from climate-damaging fossil fuels and to replace those, Quebec will need to build out more clean energy.

The good news here is that electricity is more efficient for most tasks, so fossil fuels can be replaced with significantly less electric energy. In addition, other efficiency and reduction measures can further reduce the amount of new electricity needed.

Newfoundland and Labrador is in the best situation. They are the only province that already generates more climate-safe electricity than they would need to replace all the fossil fuels they burn. They currently export most of that clean electricity.

At the other extreme are Alberta and Saskatchewan. These provinces currently produce very little climate-safe energy. For example, Alberta's 7 TWh of climate-safe electricity is only enough to cover 1 per cent of the energy used in the province.

All told, Canadians currently burn fossil fuels for three-quarters of the energy we use. To preserve a safe-and-sane climate, most provinces will soon need lots more clean electricity in the race to net-zero to replace the fossil fuels we burn.

How soon will they need it?

According to the most recent report from the International Panel on Climate Change (IPCC), avoiding a full-blown climate crisis will require humanity to cut emissions by 45 per cent over the next decade.

 

Using electricity to clean up other sectors

Finally, let's look at how electricity can help clean up two of Canada’s other high-emission sectors — transportation and buildings.

 

Cleaning up transportation

Transportation is now the second biggest climate polluting sector in Canada (after the oil and gas industry). So, it’s a top priority to reduce the amount of gasoline we use.

Canadian provincial electricity carbon intensity in 2017, plus gasoline equivalent

Switching to electric vehicles (EVs) can reduce transportation emissions by a little, or a lot. It depends on how clean the electricity supply is.

To make it easy to compare gasoline to each province's electricity I've added a new grey-striped zone at the top of the carbon-intensity chart.

This new zone shows that burning gasoline in cars and trucks has a carbon-intensity equivalent to more than 1,000 gCO2e/kWh. (If you are interested in the details of this and other data points, see the geeky endnotes.)

The good news is that every province's electricity is now much cleaner than gasoline as a transportation fuel.

In fact, most Canadians have electricity that is at least 95 per cent less climate polluting than gasoline. Electrifying vehicles in these provinces virtually eliminates those transportation emissions.

Even in Alberta, which has the dirtiest electricity, it is 20 per cent cleaner than gasoline. That's a help, for sure. But it also means that Albertans must electrify many more vehicles to achieve the same emissions reductions as regions with cleaner electricity.

In addition to reducing climate pollution, switching transportation to electricity brings other big benefits:

It reduces air pollution in cities — a major health hazard.

It cuts the energy required for transportation by 75 per cent — because electric motors are so much more efficient.

It reduces fuel costs up to 80 per cent — saving tens of thousands of dollars.

And for gasoline-importing provinces, using local electricity keeps billions of fuel dollars inside their provincial economy.

As an extra bonus, it makes it hard for companies to manipulate the price or for outsiders to "turn off the taps.”

 

Cleaning up buildings

Canada's third biggest source of climate pollution is the buildings sector.

Burning natural gas for heating is the primary cause. So, reducing the amount of fossil gas burned in buildings is another top climate requirement.

Canadian provincial electricity carbon intensity in 2017, plus gasoline and nat gas heating equivalent

Heating with electricity is a common alternative. However, it's not always less climate polluting. It depends on how clean the electricity is.

To compare these two heating sources, look at the lower grey-striped zone I've added to the chart.

It shows that heating with natural gas has a carbon-intensity of 200 to 300 gCO2 per kWh of heat delivered. High-efficiency gas furnaces are at the lower end of this range.

As you can see, for most Canadians, electric heat is now the much cleaner choice — nearly eliminating emissions from buildings. But in Alberta and Saskatchewan, electricity is still too dirty to replace natural gas heat.

The climate benefits of electric heat can be improved further by using the newer high-efficiency air-source heat pump technologies like mini-splits. These can heat using one half to one third of the electricity of standard electric baseboard heaters. That means it is possible to use electricity that is a bit dirtier than natural gas and still deliver cleaner heating. As a bonus, heat pumps can free up a lot of existing electricity supply when used to replace existing electric baseboards.

 

Electrify everything

You’ve probably heard people say that to fight climate breakdown, we need to “electrify everything.” Of course, the electricity itself needs to be clean and what we’ve seen is that Canada is making important progress on that front. The electricity industry, and the politicians that prodded them, all deserve kudos for slashing emissions at more than twice the rate of any other sector.

We still need to finish the cleanup job, but we also need to turn our sights to the even bigger task ahead: requiring that everything fossil fuelled — every building, every factory, every vehicle — switches to clean Canadian power.

 

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Why the Texas Power Grid Is Facing Another Crisis

Texas Power Grid Reliability faces record peak demand as ERCOT balances renewable energy, wind and solar variability, gas-fired generation, demand response, and transmission limits to prevent blackouts during heat waves and extreme weather.

 

Key Points

Texas Power Grid Reliability is ERCOT's capacity to meet peak demand with diverse resources while limiting outages.

✅ Record heat drives peak demand across ERCOT.

✅ Variable wind/solar need firm, flexible capacity.

✅ Demand response and reserves reduce blackout risk.

 

The electric power grid in Texas, which collapsed dramatically during the 2021 winter storm across the state, is being tested again as the state suffers unusually hot summer weather. Demand for electricity has reached new records at a time of rapid change in the mix of power sources as wind and solar ramp up. That’s feeding a debate about the dependability of the state’s power. 

1. Why is the Texas grid under threat again? 

Already the biggest power user in the nation, electricity use in the second most-populous state surged to record levels during heat waves this summer. The jump in demand comes as the state becomes more dependent on intermittent renewable power sources, raising concerns among some critics that more reliance on wind and solar will leave the grid more vulnerable to disruption. Green sources will produce almost 40% of the power in Texas this year, US Energy Information Administration data show. While that trails California’s 52%, Texas is a bigger market. It’s already No. 1 in wind, making it the largest clean energy market in the US. 

2. How is Texas unique? 

The spirit of defiance of the Lone Star State extends to its power grid as well. The Electric Reliability Council of Texas, or Ercot as the grid operator is known, serves about 90% of the state’s electricity needs and has very few high-voltage transmission lines connecting to nearby grids. It’s a deliberate move to avoid federal oversight of the power market. That means Texas has to be mainly self-reliant and cannot depend on neighbors during extreme conditions. That vulnerability is a dramatic twist for a state that’s also the energy capital of the US, thanks to vast oil and natural gas producing fields. Favorable regulations are also driving a wind and solar boom in Texas. 

3. Why the worry? 

The summer of 2023 will mark the first time all of the state’s needs cannot be met by traditional power plants, like nuclear, coal and gas. A sign of potential trouble came on June 20 when state officials urged residents to conserve power because of low supplies from wind farms and unexpected closures of fossil-fuel generators amid supply-chain constraints that limited availability. As of late July, the grid was holding up, thanks to the help of renewable sources. Solar generation has been coming in close to expected summer capacity, or exceeding it on most days. This has helped offset the hours in the middle of the day when wind speeds died down in West Texas. 

4. Why didn’t the grid’s problems get fixed? 

There is no easy fix. The Texas system allows the price of electricity to swing to match supply and demand. That means high prices — and high profits — drive the development of new power plants. At times spot power prices have been as low as $20-$50 a megawatt-hour versus more than $4,000 during periods of stress. The limitation of this pricing structure was laid bare by the 2021 winter blackouts. Since then, state lawmakers have passed market reforms that require weatherization of critical infrastructure and changed rules to put more money in the pockets of the owners of power generation.  

5. What’s the big challenge? 

There’s a real clash going on over what the grid of the future should look like in Texas and across the country, especially as severe heat raises blackout risks nationally. The challenge is to make sure nuclear and fossil fuel plants that are needed right now don’t retire too early and still allow newer, cleaner technologies to flourish. Some conservative Republicans have blamed renewable energy for destabilizing the grid and have pushed for more fossil-fuel powered generators. Lawmakers passed a controversial $10 billion program providing low-interest loans and grants to build new gas-fired plants using taxpayer money, but Texans ultimately have to vote on the subsidy. 


6. Why do improvements take so long? 

Figuring out how to keep the lights on without overburdening consumers is becoming a greater challenge amid more extreme weather fueled by climate change. As such, changing the rules is often a hotly contested process pitting utilities, generators, manufacturers, electricity retailers and other groups against one another. The process became more politicized after the storm in 2021 with Republican Gov. Greg Abbott and lawmakers ordering Ercot to make changes. Building more transmission lines and connecting to other states can help, but such projects are typically tied up for years in red tape.

7. What can be done? 

The price cap for electricity was cut from $9,000/MWh to $5,000 to help avoid the punitive costs seen in the 2021 storm, though prices are allowed to spike more easily. Ercot is also contracting for more reserves to be online to help avoid supply shortfalls and improve reliability for customers, which added $1.7 billion in consumer costs alone last year. Another rule helps some gas generators pay for their fuel costs, while a more recent reform put in price floors when reserves fall to certain levels. Many power experts say that the easiest solution is to pay people to reduce their energy consumption during times of grid stress through so-called demand response programs. Factories, Bitcoin miners and other large users are already compensated to conserve during tight grid conditions.

 

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