Texas Weighs Electricity Market Reforms To Avoid Blackouts

texas electricity reforms

HOUSTON -

The Public Utility Commission of Texas is discussing major reforms to the state’s electricity market with the purpose to avoid a repeat of the power failures and blackouts in February 2021, which led to the death of more than 100 people and left over 11 million residents without electricity for days.

The regulator is discussing at a meeting on Thursday around a dozen proposals to make the grid more stable and reliable in case of emergencies. Proposals include paying power generators that are on standby when the grid needs backup, and requiring companies to pre-emptively buy capacity to meet future demand.

It is not clear yet how many and which of the proposals for electricity market reforms PUC will endorse today.

Analysts and consumer protection bodies warn that the measures will raise the energy bills for consumers.

“Customers will be paying for more, but will they be getting more reliability?” Michael Jewell, an attorney with Jewell & Associates PLLC who represents clients at PUC proceedings, told Bloomberg.

“This is going to take us further down a path that’s going to increase cost to consumers, we better be darn sure these are the right choices,” Tim Morstad, Associate State Director, AARP Texas, told FOX 4 NEWS.

Last month, a report by the North American Electric Reliability Corp warned that the Texas grid remained vulnerable to blackouts in case of a repeat of this year’s February Freeze.

According to the 2021-2022 Winter Reliability Assessment report, Texas risks a 37-percent reserve margin deficit in case of a harsh winter, NERC said.

A reserve margin is the reserve of power generation capacity comparative to demand. The expected reserve margin for Texas for this winter, according to NERC, is 41.9 percent. Yet if another cold spell hits the state, it would affect this spare capacity, pushing the margin deeply into negative territory.

Related News

air pollution over LA

California's solar energy gains go up in wildfire smoke

LOS ANGELES - Smoke from California’s unprecedented wildfires was so bad that it cut a significant chunk of solar power production in the state. Solar power generation dropped off by nearly a third in early September as wildfires darkened the skies with smoke, according to the US Energy Information Administration.

Those fires create thick smoke, laden with particles that block sunlight both when they’re in the air and when they settle onto solar panels. In the first two weeks of September, soot and smoke caused solar-powered electricity generation to fall 30 percent compared to the July average, according to the California…

READ MORE
leapreau nuclear station

Questions abound about New Brunswick's embrace of small nuclear reactors

READ MORE

ehrc logo

Government of Canada Invests in the Future of Work in Today's Rapidly Changing Electricity Sector

READ MORE

Over 30% of Global Electricity from Renewables

Over 30% of Global Electricity from Renewables

READ MORE

berlin-electric-utility-wins-national-safety-award

Berlin Electric Utility Wins National Safety Award

READ MORE