Texas Clean Air Matters

3 reasons Texas’ electric grid survived a summer that pushed its limits

As the hot summer approached, state leaders expressed concern about potential blackouts and brownouts. Yet, thoughtful planning, a functional electricity market, and clean energy helped ensure the lights stayed on.

Power outage concerns­­

Hotter temperatures and continued population and commercial growth drove record electricity demand this past summer. Additionally, in early 2018, Luminant (now Vistra) shut down three large coal plants – all inefficient and highly-polluting – with a combined capacity of 4,200 megawatts (MW).

The shutdown of these power plants and other changes in the electricity market initially led the state’s electric grid operator, the Electric Reliability Council of Texas (ERCOT), to forecast a reserve margin of 9.3 percent for summer 2018. The reserve margin is a measure of whether the Texas grid has extra energy capacity to satisfy periods of strong customer demand, and ERCOT traditionally had targeted a 13.75 percent margin. Potential outages remained a concern even after ERCOT updated its final projections and the reserve margin rose to 11 percent.

As it turned out, even when ERCOT set a new system-wide demand record (73,308 MW) in July, no electricity shortages occurred. ERCOT didn’t initiate any Energy Emergency Alerts, and it didn’t issue any appeals for customers to conserve electricity. Read More »

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Texas’ electricity market is working. But these companies want to change the rules to benefit themselves.

Texas’ two largest natural gas electricity generators are pressing state officials to implement a self-serving policy change that would significantly impact how wholesale electricity is priced in Texas.

Calpine Corporation and NRG Energy are pushing for “marginal losses” – a way of accounting for electricity that is lost on transmission lines as it moves from power plants to homes and businesses – when figuring the price that power plants get paid for electricity as retailers and public utilities buy it to serve their electricity customers.

The proposal is a penalty system that would benefit a few electricity generators at the expense of the rest of the state. Moreover, it has the potential to stifle the growth of clean energy and cause Texas to forgo the nearly $5 billion in energy cost savings that is projected to result from that growth. Read More »

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