Or 2.4 billion reasons, depending on how you want to count it.
The Texas electric grid collapse during the February winter storm killed hundreds of Texans and caused an estimated $295 billion in damages, while generating seismic gains for a small and powerful few. The natural gas industry was by far the biggest winner, collecting $11 billion in profit by selling fuel at unprecedented prices to desperate power generators and utilities during the state’s energy crisis. No one won bigger than Dallas pipeline tycoon Kelcy Warren: Energy Transfer Partners—the energy empire Warren founded and now is executive chairman of—raked in $2.4 billion during the blackouts.
That immense bounty soon trickled down to Governor Greg Abbott. On June 23, Warren cut a check to Abbott’s campaign for $1 million, according to the governor’s latest campaign finance filing, which covers January through June. That’s four times more than the $250,000 checks that the billionaire has given to Abbott in prior years—and the most he’s ever given to a state politician in Texas.
In the months after one of the worst energy disasters in U.S. history, Abbott has dutifully steered scrutiny away from his patrons in the oil and gas industry. Last month, the governor signed into law a series of bills that strengthened regulation of the state’s grid. But experts warned that lawmakers didn’t go far enough to prevent another grid failure and failed to crack down on natural gas companies. At a bill signing ceremony on June 8, Abbott proclaimed that “everything that needed to be done was done to fix the power grid in Texas.”
The unusually large contribution from the blackout’s biggest profiteer raises questions about Warren’s influence over the governor and has prompted outrage at what many see as a blatant political kickback for kowtowing to the powerful natural gas industry.
As he gears up for a reelection bid in 2022, Abbott has resisted calls to include further power grid fixes in a special session. Instead, his current special session agenda centers on sweeping “election integrity” legislation that prompted House Democrats to break quorum for the second time this year and hole up in Washington, D.C., until the session expires.
The governor has relentlessly pinned blame for the grid failure on renewable energy sources like wind and solar, Electric Reliability Council of Texas officials (ERCOT), and even the state’s giant power generators, all while ignoring the significant failures of the natural gas industry. Lawmakers watered down proposed regulations on the gas supply system in the face of aggressive industry lobbying.
By refusing to include additional grid reforms in special sessions, Abbott has ensured that the natural gas sector will avoid any further legislative scrutiny. That, experts warn, means the state’s grid remains at risk of future collapse. Earlier this month, Abbott issued another love letter to his fossil fuel benefactors, ordering his three brand-new Public Utility Commission (PUC) appointees to create incentives for fossil fuel and nuclear power generators and impose new costs on wind and solar plants.
While gas companies made huge profits during the winter storm, the financial fallout has been passed on to Texans. In May, lawmakers passed legislation that provided several billion dollars in state bonds for power companies that were waylaid by the exponential hike in energy costs. Texans will be paying that off through higher gas bills for at least the next decade.
Not really much to add to this, is there? It’s not like this is anything new, but it sure feels more blatant than usual. If there isn’t an effective advertising message in this, I don’t know what one might be.