Selected tags: Public Utility Commission

Chairman Nelson Cannot Ignore Texas Wind’s Benefits and Condemn Its Cost

Wind technicians working atop a turbine in Sweetwater, Tex. Source: NY Times

Wind technicians working atop a turbine in Sweetwater, Tex.
Source: NY Times

Earlier this month, Texas Public Utility Commission (PUC) chairwoman Donna Nelson called for the federal government to end its renewable energy tax credit for Texas wind and for the end of state policies that have resulted in Texas’ clean energy economy boon. The chairman’s appeal is so devoid of a factual basis it is hard to conclude that this is anything other than part of an orchestrated campaign by fossil fuel interests to stop the growth of renewable energy. Like the other attacks on clean energy, this is more politics than substance.

The federal and state policies that Chairman Nelson wants to eliminate have been great for Texas. Texas ranks first in the nation for wind-related jobs, employing over 8,000—and many of those jobs are keeping agriculture-heavy West Texas and Panhandle communities afloat amid the devastating multi-year drought. Plus, 60% of all wind projects under construction across the country in the first quarter of 2014 were in Texas. And studies (including one produced by the Texas PUC) have shown that electricity prices are lower when more wind energy is installed on the power grid.    Read More »

Posted in ERCOT, Green Jobs, Renewable Energy, Wind| Also tagged | 1 Response, comments now closed

Demand Response Is the Best Cure for Texas’ Ailing Grid

Source: North America Power Partners

Source: North America Power Partners

The Texas Public Utilities Commission (PUC) has, yet again, kicked the can down the road on securing reliable energy to power the state’s growing population. The PUC, the state agency charged with managing electricity rates, meets to securely plan for the future, yet they continue to delay planning meetings. This will benefit no one in the short or long-run. To secure reliable power and safeguard against threats of blackouts, the PUC needs to keep pace with the times and leverage technologies that require little to no water, generate negligible carbon emissions, and can respond to the call for electricity.

Last week, the PUC decided to postpone indefinitely an important meeting, originally scheduled for May, to discuss Texas’ recent blackout scares. The PUC has been in a heated debate over Texas’ electricity market structure, and in the midst of backlash from stakeholders, they have decided to push the decision onto the Legislature in 2015. This is not necessarily in the best interest of the state. Texans were asked to conserve energy several times this winter after colder temperatures forced heating units to ramp up. This request to turn down thermostats for threat of rolling blackouts came at the same time the state power grid operator assured Texans that reliability is on the upswing. But it’s time Texas faces the facts. Read More »

Posted in Demand Response, ERCOT, Renewable Energy, Smart Grid| Also tagged , | 1 Response, comments now closed

Freezing, Scorching, or Not, Texas Needs More Demand Response

MaritaHeadshotAs we thaw out this week from our most recent arctic blast, Texas’ inexperience with ice and snow has been met with Internet memes and jokes. But dealing with extreme temperatures causes serious strain on our current energy system and exacerbates our “energy crunch,” signifying that the available supply of electricity barely meets the demand for that power.

However, as is typical of Texas, last week our weather was quite pleasant – in the 70s – and strains on the system due to weather events weren’t too much of a concern. Yet the Electric Reliability Council of Texas (ERCOT), the state agency charged with managing the flow of electricity for most of Texas, alerted an emergency situation despite mild temperatures. To avert disaster, ERCOT initiated demand response, “ask[ing] customers to raise thermostat settings to 78 degrees, typically a summer response intended to reduce demand from air conditioners.” A single malfunctioning power plant caused the problem. ERCOT declined to identify the plant involved. Read More »

Posted in Demand Response, ERCOT, Extreme Weather, Smart Grid, Utilities| Also tagged , | Comments closed

Debate Over a Changing Texas Energy Market Heats Up at Senate Natural Resources Committee Hearing

Marita Mirzatuny

This commentary originally appeared on EDF's Energy Exchange blog.

Over the past two years, Texas’s changing energy landscape has been a focus of EDF’s work.  In our Texas’ Energy Crunch report from March 2013, we highlighted that Texas has a peak capacity constraint – meaning that the power grid becomes strained when, for example, everyone is using their air conditioning units on hot summer afternoons.  This challenge, coupled with increased climate change and drought, signal the need to prepare by adopting a smarter grid and cleaner resources.

The Public Utilities Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) have been engaged in this conversation and various proposals have been laid on the table to determine what Texas’ energy future will look like.  EDF maintains the position that, whatever reforms are made, customer-facing, demand-side resources – defined here as demand response (DR), renewable energy, energy efficiency and energy storage – must play a key role to ensuring reliability, affordability, customer choice and environmental improvements.

Energy-Only Status Quo or Capacity Market or…?

Texas’ current energy-only market structure pays power plants only for the energy they produce.  This is beneficial in that generators are not overcompensated, but the downside is that energy companies aren’t incentivized to build in Texas and energy management providers (DR companies) are not viewed as equal players.  Energy prices are low due to an upsurge in cheap, abundant natural gas and wind – and without a guarantee for a high return on investment, companies will not take the risk of constructing costly new power plants. Read More »

Posted in Demand Response, Energy Efficiency, ERCOT, Renewable Energy, Smart Grid, Texas Energy Crunch| Also tagged , | Comments closed

New Commissioner Should Push For More Energy Efficiency In Texas

This commentary originally appeared on EDF's Energy Exchange blog.

This week the Texas Legislature convened for its third Special Session in a row, yet the state’s electricity market still sits at a crossroads.  The Public Utility Commission of Texas (PUC), Texas’ governing body for electricity, has been at a stalemate since Commissioner Rolando Pablos stepped down in February.  The two remaining commissioners, Chairman Donna Nelson and Ken Anderson, seem to be waiting on a third deciding member to step up and address the looming Texas Energy Crunch.  With the PUC divided and the legislature nearly adjourned, the state looks to Governor Perry to appoint a third commissioner to the PUC—breaking the longstanding stalemate on Texas’ power supply.

When appointed, the new commissioner will be in unique position to champion innovative, common-sense solutions to solve the Texas Energy Crunch.  One of the most expedient and cost-effective ways to bolster the state’s electricity supply is to reduce the amount of energy needed to fuel our commercial buildings and homes through energy efficiency upgrades.  In an upcoming post, I’ll discuss innovative ways to weigh the benefits of energy efficiency upgrades versus new fossil-fueled power plants.  For now, though, let’s review where energy efficiency stands in Texas today.

Read More »

Posted in Energy Efficiency, ERCOT, Green Jobs, Texas Energy Crunch, Utilities| Also tagged , , , , , , | Comments closed
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