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Who’s worried about electricity in Texas?

The guy who writes The Watchdog for the DMN, for one. The people with real power in this state, not so much.

I was lonely.

For more than a decade, it was as if I were the only North Texas journalist regularly covering the flaws of the Texas electricity system. It’s not that I was so smart. I heard from hundreds of readers every year who complained about the confusing and unfair deregulated market.

Yet when the Texas Legislature met, nothing ever happened. An electricity activist, Carol Biedryzcki, promoted common-sense solutions that nobody listened to. Sylvester Turner, a former state representative who is now Houston’s mayor, introduced reform bills that never got voted on.

Another Houston representative, Gene Wu, introduced fix-it bills, too. Lawmakers who cared about the issue could fit in a small elevator.

It became obvious that no governor or state lawmaker wanted to tangle with what former U.S. House Speaker Sam Rayburn once said of the electricity industry: “The most powerful, dangerous lobby… that has ever been created by any organization in this country.”

[…]

Then came the horrific February freezeout, and everything changed. People died. Homes were ruined. Businesses were shuttered. The suffering was immeasurable for days. One of the worst Texas weather events ever.

The story was suddenly front and center. The Texas energy house of cards collapsed. Complete favoritism toward the industry was as obvious as the noontime sun. Right before our eyes, in real time, corruption flourished.

[…]

When the power returned, I began by pointing fingers at the governors, lawmakers, regulators and industry powerhouses who were responsible.

“Don’t count on state lawmakers to admit culpability,” I wrote. “And don’t trust their coming investigations to be unbiased.”

I released the 2021 edition of my annual electricity shopping guide. It’s a free step-by-step guide with tips that I’ve shared with tens of thousands of Texans, online, in the newspaper and as a paper flier.

DeAnn Walker, the chairperson of the (p)UC, who months before in a huff had eliminated the Enforcement Division, appeared before the state Senate. I called her the “incredible shrinking chairman.”

“You’re the commissioner!” one Republican senator chastised. “Y’all don’t have any teeth,” another scolded.

Her reply shows why she lost the P: “If you believe we have that authority, I’m open to moving forward with it,” Walker said. Believe it.

She resigned in disgrace and was replaced as chair by Arthur D’Andrea.

He lasted two weeks. In a 48-minute conference call with investors, first reported by Texas Monthly, he assured them he was doing everything within his power “to tip the scale as hard as I could” so billions of dollars in overcharges from the freezeout would not be reversed.

He laid out the strategy that would come later when lawmakers, the Texas Railroad Commission (regulating oil and gas) and the (p)UC approved the sale of $10 billion in bonds to pay back energy companies’ losses.

Unfortunately, companies that made millions of dollars during the crisis will see some of that bailout money, too.

Who repays the $10 billion? You. But don’t worry, it’s a long-term loan.

D’Andrea also told investors in that call that he didn’t “expect to see a ton” of improvements passed by lawmakers. He was correct. Although for the first time ever, many reform bills were introduced. Most died.

The Watchdog kept a scorecard for good reform bills. Most had notations of either “Stuck in committee” or “No action taken.”

Texans should not have been surprised at electric grid operator ERCOT’s failing. The non-profit was a cesspool of corruption years before. In 2005, a massive procurement scandal led to criminal convictions. Fake companies were created by ERCOT managers, and millions of dollars were siphoned from ERCOT funds.

There’s more, but you get the idea. A lot of this we’ve seen before, but there’s no harm in being reminded. Greg Abbott is counting on a normal winter and a whole lot of short attention spans to claim a victory for doing nothing. Don’t let him do it.

We are so screwed if there’s a real cold front

[bangs head on desk].

During Texas’ first strong cold front of the winter this past weekend, natural gas production in the state’s top energy-producing region dropped by about 25%, according to a report from S&P Global. And while the lights largely stayed on across the state, the gas system’s performance during a brief cold snap raised more questions about the grid’s ability to handle extreme winter weather.

A separate Bloomberg report said gas production in the Permian Basin region of West Texas plunged to its lowest levels since last February’s deadly winter storm.

A number of natural gas companies reported to the Texas Commission on Environmental Quality that they had to unexpectedly flare off gas last weekend because their equipment froze.

Meanwhile, the Railroad Commission, which regulates the oil and gas industry, said it didn’t know anything about the sudden drop in gas production. An agency spokesperson said the commission is “currently evaluating available data on natural gas production during the weekend of Jan. 1 and 2.”

Natural gas fuels a majority of power generation in Texas, and some power generators reported disruptions to their gas supply — but they said it was not enough to impact generators’ ability to produce electricity. Gov. Greg Abbott said the state’s main power grid operator was prepared with extra power supply online.

The Electric Reliability Council of Texas, the grid operator, said there were no significant power outages around the state.

But the disruptions to the natural gas supply during a typical Texas cold front calls into question whether the state’s gas companies are ready for extreme winter weather, a concern energy experts and power company executives have expressed in recent months after lawmakers didn’t require gas companies to immediately prepare their equipment for extreme cold.

“I think it means the gas system’s not ready for another cold snap,” said Michael Webber, an energy resources professor at the University of Texas at Austin. “It wasn’t even really cold. It was cold, but nothing close to Winter Storm Uri [in February].”

Who are you gonna believe, Greg Abbott or your lying eyes? At this point, all I can say is it would be best to prepare for winter like you prepare for hurricane season. Assume a disaster is coming, and act accordingly. Abbott doesn’t care if you live or die, so it’s everyone for themselves. Godspeed and good luck.

The final official death toll from the big freeze

It’s undoubtedly an underestimate.

Texas has added 36 more deaths to the official death toll from the February snow and ice storm, bringing the total to 246 in what was one of the worst natural disasters in the state’s history.

The Department of State Health Services disclosed the new total in a report on the storm that was released Friday and described as the “final report” in an analysis by the department’s Disaster Mortality Surveillance Unit. The deaths occurred between Feb. 11 and June 4. The figure includes people who were injured in the storm but did not die until later, and also people whose bodies were found after the storm, including during repairs of damaged homes.

The 246 deaths spanned 77 counties and included victims ranging from less than 1 year old to 102 years old, according to the report. Close to two-thirds of the deaths were due to hypothermia. Of the deaths, the report classified 148 as “direct,” 92 as “indirect” and six as “possible,” using criteria developed by the Centers for Disease Control and Prevention.

DSHS previously pegged the death toll at 210 in July. The agency said in the report that it identifies deaths through “mortality surveillance forms, death certificates, and verification of informally reported deaths.”

[…]

In addition to hypothermia, DSHS attributed the storm-related deaths to “exacerbation of pre-existing illness” (10%), motor vehicle accidents (9%), carbon monoxide poisoning (8%), fires (4%) and falls (4%). The Texas Tribune and NBC News reported in December that portable generators, which can cause carbon monoxide poisoning, are some of the deadliest consumer products.

There are other ways to approach this question. Last spring Buzzfeed used “excess mortality” – a comparison to the actual number of deaths at that time to the historic baseline – and estimated that as many as a thousand people may have died as a result of the freeze. That comes with large error bars, but even the low end of that range is almost twice as much as the official DSHS tally. However you look at it, it was a lot, and it was totally unnecessary. And it remains a big risk going forward because Greg Abbott and the Legislature and the Railroad Commission did basically nothing to mitigate it. That’s the real headline here.

Nobody bullshits like Greg Abbott

Some stories I blog about require subtle thought and detailed analysis. Others pretty much speak for themselves.

The two most powerful people overseeing Texas’ electric grid sat next to each other in a quickly arranged Austin news conference in early December to try to assure Texans that the state’s electricity supply was prepared for winter.

“The lights are going to stay on this winter,” said Peter Lake, chair of the Public Utility Commission of Texas, echoing recent public remarks by Gov. Greg Abbott.

Two weeks earlier, Abbott had told Austin’s Fox 7 News that he “can guarantee the lights will stay on.” The press conference that followed from Lake and the chief of the state’s independent grid operator, the Electric Reliability Council of Texas, came at the governor’s request, according to two state officials and one other person familiar with the planning, who were not authorized to discuss the matter and spoke on the condition of anonymity.

“It was 150% Abbott’s idea,” said one of the people familiar with the communication from Abbott’s team. “The governor wanted a press conference to give people confidence in the grid.”

A source close to Lake said the idea for the press conference was Lake’s, and the governor supported it when Lake brought up the idea during a meeting.

Abbott has for months been heavily involved in the public messaging surrounding the power grid’s winter readiness. In addition to the press conference, he has asked a major electric industry trade group to put out a “positive” public statement about the grid and has taken control of public messaging from ERCOT, according to interviews with current and former power grid officials, energy industry trade group representatives and energy company directors and executives.

But the messaging has projected a level of confidence about the grid that isn’t reflected in data released by ERCOT or echoed by some power company executives and energy experts who say they’re worried that another massive winter storm could trigger widespread grid failures like those that left millions of Texans without power in February, when hundreds of people died.

Abbott has also met one-on-one with energy industry CEOs to ask about their winter readiness — but those meetings happened weeks after Abbott made his public guarantee about the grid.

“You’d think he would have asked to meet with us before saying that,” one person involved in the energy company meetings, who was not authorized to speak publicly, said of Abbott’s guarantee.

Ten months after the power grid failures caused hundreds of deaths and became national news, an election year is approaching and Abbott’s two top primary challengers and his top Democratic challenger have already been harshly criticizing the governor over his handling of the power grid.

“It might be a good political move, but it’s just a political move,” Peter Cramton, an energy markets expert and former ERCOT board member who resigned after the storm, said of Abbott’s promise. “It’s not surprising. His fate is on the line. So this is a sensitive political issue now.”

The details may be news, but the basics have been known for some time. Abbott has bet the 2022 election on there not being a freeze big enough to cause another massive blackout. When we make it through the winter without anything bad happening – and let’s be honest, the odds of another freeze like this past February are pretty small, though perhaps the odds of any kind of freeze are higher – he will claim full credit for “fixing” the problem, even though he has done nothing of the sort. But who are you gonna believe, your own uninterrupted power supply or those yappy liberals?

I, being more risk averse and being the type of person who wants to actually, you know, do things, would not take this approach. But given that he was never going to advocate for something that would make a difference anyway, why not double down? The odds are in his favor, if not ever in his favor. Just remember that no matter what happens over the next three months or so, it was all bullshit. Every last bit of it.

ERCOT and PUC swear there will be no blackouts this winter

Do you believe them?

The Public Utility Commission and the Electric Reliability Council of Texas on Wednesday pledged that the “lights will stay on” this winter as it inspects power generators and enforces other requirements to avoid a deadly power outage that crippled Texas during a February storm.

Peter Lake, chairman of the PUC, which regulates utilities in the state, said at a press conference that his agency and ERCOT, the state’s grid manager, have moved at “lightning speed” to change the requirements for power producers and natural gas supplies to operate during winter months. The PUC oversees ERCOT.

“Our grid is safer and stronger than ever,” he said. “Because of all these efforts, the lights will stay on. No other grid has made so many changes in such a short amount of time as we have.”

The promise to keep power flowing comes about 10 months after massive outages caused by a winter storm that plunged millions of Texans into freezing darkness, leading to the deaths of hundreds. All commissioners who served the PUC resigned or were fired, as was the CEO of ERCOT. State legislators and new commissioners on the PUC have passed laws and rules requiring power generators and affiliated companies to better prepare for frigid weather.

Among the changes are new penalties and requirements, and a reduction in the maximum price for one megawatt hour of power to $5,000 from $9,000 beginning Jan. 1. Alison Silverstein, an Austin-based energy consultant who worked for the PUC from 1995 to 2001 and with the Federal Energy Regulatory Commission from 2001 to 2004, said the previous pricing scheme allowed generators to make the bulk of their money during tight grid conditions.

“This is intended to redistribute revenues so instead of making all your money only during extreme scarcity events, you’re getting more money from a flatter curve,” she said. ” You’re still getting $5,000 per megawatt hour in a tight time, which is still a whole lot of cash, but more of your revenue will come from normal days.”

[…]

Silverstein said that the violation reports and other rules changes are a good start, but that more needs to be done. The PUC, she said, should commission an analysis of the current condition of the grid, determine what needs to be done to improve reliability and estimate the cost to consumers, she said. Power generators, she said, should be able to show they can restart the entire grid in the event it collapses. And, she said, the PUC should address Texas’ nation-leading energy demand instead of solely focusing on adding new generation.

“I think they are right to say they have made a meaningful dent in preventing some of the problems that Winter Storm Uri revealed,” Silverstein said. “But that doesn’t mean the job is done yet.”

It is plausible to me that some beneficial changes have been made. Whether any of that makes a material difference or not, who knows. If we do make it through the winter with no problems, the odds are it’s due to a more normal winter and a bit of luck rather than anything transformative, but in the end it is the result that matters. For sure, whether by luck or by better oversight and regulation, Greg Abbott will win his bet and claim credit for it. The Texas Signal and the Trib, which reminds us that the Railroad Commission has not yet drafted any new weatherization rules for gas producers, have more.

A brief look at the winter storm litigation

This story is actually about the judge who will be presiding over winter storm cases, but it caught my eye for a reason that will be apparent.

Sylvia A. Matthews presided over more than 175 jury trials and 160 bench trials during her decade as a Harris County District Court judge. Lawyers for plaintiffs and defendants say she is smart, fair, well-prepared, hard-working, efficient and decisive.

Matthews will need all those qualities over the next several months as she oversees more than 150 highly complex civil lawsuits filed by victims seeking billions of dollars in damages as the result of last February’s winter storm, which was one of the deadliest and costliest disasters in Texas history.

The lawsuits filed across Texas include individuals suing for wrongful death, personal injury and property damages and companies complaining about breach of contracts, interruption of business and price-gouging.

Some of the largest power companies, such as the Houston utility CenterPoint Energy, the Chicago company Exelon and Vistra Energy of Irving, one of the state’s biggest generators and retail electricity providers.

While the lawsuits have been filed in more than a dozen Texas courts, the Texas Supreme Court has consolidated them into one docket, called multidistrict litigation.

The cases are consolidated for efficiency, allowing pretrial issues, such as production of evidence and admissibility of testimony, to be decided in a uniform matter. Once the pretrial issues are decided, the cases are usually sent back to the courts where the lawsuits were filed for trial.

For example, lawyers predict that the 200 lawsuits already filed in the Astroworld tragedy will also be consolidated into a single proceeding for pre-trial purposes.

[…]

The winter storm litigation is likely to take years to resolve, according to legal experts. In fact, the statute of limitations for more lawsuits does not expire for another year, meaning more cases may still be filed.

The stuff in between is about Judge Matthews, a Republican now serving as a visiting jurist following her electoral defeat in 2018. It’s fine, I’m glad she’s good at her job, but it was the stuff about the Texas Multidistrict Litigation Panel that I noticed. Here’s this thing I’d never heard of before October of this year, and now it’s turning up all over the place, including and not surprisingly in the AstroWorld cases. I feel like someone owes me a nice in-depth explainer about this body. How long has it been in existence, what are the rules that govern it, who serves and how do they get there, and is it just one of those things that it’s been a key player in such high profile and hot button matters as these cases plus SB8 or is it somehow a sign of the times? Oh, to be an assignment editor. Seriously, someone write me that story, I’d read the hell out of it.

Anyway. Litigation over the freeze and blackout and responsibility for the latter will no doubt go on for years, but hopefully it will help provide some answers. Lord knows, we’re not getting any from our state leaders. I’ll be keeping an eye out for further news.

It’s the power grid, stupid

It’s also a campaign theme.

Texas Democrats want to talk about the power grid.

Specifically, they want to talk about how it failed in February, how they don’t think enough has been done to fix it and why they believe Republicans in statewide leadership positions are the ones to blame.

Democratic candidates and strategists see the power grid as the Republican party’s biggest vulnerability — and they see highlighting it as their best shot at winning crossover voters in the state’s 2022 election cycle, which is expected to be an uphill battle for the minority party.

In stump speeches and messages to supporters, Democrats say that GOP leaders failed at fixing the shortcomings of the state’s energy infrastructure that led to millions of Texans losing power for multiple days during a winter storm in February, which resulted in a death toll that has been calculated as ranging from 210 to more than 700 people.

Beto O’Rourke, the frontrunner to challenge Republican Greg Abbott for governor, has said the two-term incumbent did “absolutely nothing” to heed warnings despite a previous electricity blackout in 2011. Mike Collier, who is running for lieutenant governor, coined the slogan “fix the damn grid” as one of his campaign’s top priorities. And Luke Warford, who is running for a seat on the Texas Railroad Commission, which regulates the state’s oil and natural gas industry, has made “Let’s keep the lights on!” his campaign slogan.

“It makes sense for Democrats to want to channel those doubts and put them front and center,” said Jim Henson, director of the Texas Politics Project at the University of Texas at Austin. “About the only good thing for Democrats about the extended Republican monopoly [in state politics] and their demonstrated inability to break that monopoly is that there’s only one political party that can be blamed.”

Republicans, not surprisingly, disagree. It’s not much of a campaign slogan if there’s no conflict. The story notes that 1) the public largely agrees with the position that Abbott and the Lege didn’t do enough, according to the polling data we have; 2) the state’s own studies say we’re still vulnerable to blackouts under the right (or wrong, depending on how you want to look at it) set of circumstances; and 3) numerous Republicans, from Dan Patrick to the pack of jackals running against Abbott in the Republican primary, think that Abbott and the Lege didn’t do enough to fix the problem. As I said, this is Greg Abbott’s bet, that things will be sufficiently OK through the next winter and summer, and if so he’ll claim the credit for it. Only time will tell.

Greg Abbott’s bet

What, me worry about blackouts?

Gov. Greg Abbott promised that the state’s electric grid would be able to withstand pressures caused by any potential winter storm that occurs this year in a television interview Friday.

“Listen, very confident about the grid. And I can tell you why, for one: I signed almost a dozen laws that make the power grid more effective,” Abbott said. “I can guarantee the lights will stay on.”

After the winter storm in February that left millions across the state without power, the Legislature passed a number of bills requiring additional “weatherization” measures for companies that maintain the state’s electric grid.

But experts have expressed concerns that loopholes have allowed some natural gas providers to exempt themselves from the weatherization requirements, potentially leaving the system still vulnerable.

“Everything that needed to be done was done to fix the power grid in Texas,” Abbott said in June when he signed two of the bills.

[…]

“You’re going to have another winter and another summer that’s going to strain the electric grid,” said Brandon Rottinghaus, a professor at the University of Houston. “If there’s any kind of problem for people, there’s a direct connection to how Democrats can use that to their political advantage against Republicans.”

Well, “guarantee” is a strong word.

After last winter’s freeze hamstrung power giant Vistra Corp.’s ability to keep electricity flowing for its millions of customers, CEO Curt Morgan said he’d never seen anything like it in his 40 years in the energy industry.

During the peak days of the storm, Vistra, Texas’ largest power generator, sent as much energy as it could to power the state’s failing grid, “often at the expense of making money,” he told lawmakers shortly after the storm.

But it wasn’t enough. The state’s grid neared complete collapse, millions lost power for days in subfreezing temperatures and more than 200 people died.

Since the storm, Texas lawmakers have passed legislation aimed at making the grid more resilient during freezing weather. Signing the bill, Gov. Greg Abbott said “everything that needed to be done was done to fix the power grid.”

But Morgan isn’t so sure. His company has spent $50 million this year preparing more than a dozen of its plants for winter. At the company’s plant in Midlothian, workers have wrapped electric cables with three inches of rubber insulation and built enclosures to help shield valves, pumps and metal pipes.

No matter what Morgan does, though, it won’t be enough to prevent another disaster if there is another severe freeze, he said.

That’s because the state still hasn’t fixed the critical problem that paralyzed his plants: maintaining a sufficient supply of natural gas, Morgan said.

Natural gas slowed to a trickle during the storm, leaving the Midlothian facility and 13 other Vistra power plants that run on gas without enough fuel. The shortage forced Vistra to pay more than $1.5 billion on the spot market for whatever gas was available, costing the company in a matter of days more than twice the amount it usually spends in an entire year. Even then, plants were able to operate at only a fraction of their capacity; the Midlothian facility ran at 30% of full strength during the height of the storm.

“Why couldn’t we get it?” Morgan said recently. “Because the gas system was not weatherized. And so we had natural gas producers that weren’t producing.”

If another major freeze hits Texas this winter, “the same thing could happen,” Morgan said in an interview.

[…]

Texas has done “next to nothing” to weatherize its natural gas supply, said Doug Lewin, an Austin-based energy consultant.

“We don’t have a regulatory system in place that holds the industry accountable. That is the problem,” Lewin said. “It’s not a technology or engineering problem. It’s a regulatory problem.”

And maybe that doesn’t matter, at least for this year. I’m sure Greg Abbott can afford to have a meteorologist on his political staff, and I’m sure that person will have advised him that another freeze like the one we saw this year is unlikely. Even a freeze that isn’t quite as bad probably won’t happen. Given that Abbott isn’t going to lift a finger to improve the grid’s reliability, why not bet big on the more probable outcome, even if the downside is so massive. At this point he’s made his bed anyway, and if we make it through next summer without anything bad happening he gets to claim the credit for it. I’m too risk averse to want to make that bet, but here we are. As they say, it’s a bold move and we’ll see if it pays off for him.

We’re still vulnerable to blackouts

So says ERCOT.

Electricity outages in Texas could occur this winter if the state experiences a cold snap that forces many power plants offline at the same time as demand for power is high, according to an analysis by the Electric Reliability Council of Texas. The outages could occur despite better preparations by power plants to operate in cold weather.

Heading into the winter, ERCOT considered five extreme scenarios in a risk assessment of the state’s power supply. The grid operator estimates both how much electricity Texans are expected to demand and how much electricity power plants are expected to produce ahead of each season.

Following the widespread February power outages that left millions without electricity for several days, ERCOT changed those assessments to calculate what would happen if extreme conditions occurred simultaneously — like what happened this year.

The calculations show the power grid’s vulnerability to the cumulative impact of multiple pressures that could leave the system short of a significant amount of power. Power grids must keep supply and demand in balance at all times. When Texas’ grid falls below its safety margin of 2,300 megawatts of extra supply, ERCOT, the grid operator, starts taking additional precautions to avoid blackouts, such as asking residents to conserve power.

The calculations for severe risk this winter show that it wouldn’t take a storm as bad as the one in February, when hundreds of people died, to take the grid offline.

[…]

“We’ve had years of poor planning of peak [demand] by ERCOT,” said Alison Silverstein, an expert on Texas’ electricity system who formerly worked at the Federal Energy Regulatory Commission and the Public Utility Commission of Texas. She spoke during a public event hosted by the environmental group the Sierra Club on Saturday. “ERCOT’s power market has historically been managed to minimize costs, not to assure excellent reliability.”

Four of the five extreme risk scenarios ERCOT considered would leave the grid short a significant amount of power, which would trigger outages for residents.

The extreme scenarios have a low chance of occurring, ERCOT emphasizes in its report, and the grid operator estimates more power generation will be available than last winter.

Under typical winter grid conditions, the ERCOT report said, there will be sufficient power available to serve the state.

Well yeah, but if this winter had been typical we wouldn’t have had the massive power failures we did. The point is we did have them. There is a calculation that needs to be done to balance the likelihood of a given event occurring and the bad things that will happen if it does. Not all risks are worth the cost of mitigation, but we do tend to take action against the things that have the biggest downside. House fires are increasingly rare, for a variety of reasons, but we still install smoke detectors and carry insurance against the damage and loss they cause. If we’re not taking all reasonable steps to mitigate against the kind of outage we had this February, we are definitely doing it wrong.

FERC report on the freeze

It was lack of weatherization all along.

A shortage of natural gas during the winter storm that swept Texas and other states in the south central United States in February was primarily caused by the oil and gas industry’s failure to weatherize its systems, resulting in more than 58 percent of generation outages occurring at natural gas-fired power plants, the Federal Energy Regulatory Agency reported Tuesday.

Over a more than 300-page report, federal officials catalogued how one of the largest blackouts in the nation’s history came to pass, leaving millions of people in Texas without power for days on end. And while all parts of the region’s energy industry shouldered some of the blame, federal officials reported natural gas operators’ equipment freezing up was responsible for more than twice as much of the gas supply shortages as were rolling blackouts and downed power lines.

“The (report) highlights the need for substantially better coordination between the natural gas system and the electric system to ensure a reliable supply that nearly 400 million people across North America depend upon to support their way of life,” Jim Robb, president of the North American Electric Reliability Corporation, said in a statement.

[…]

In September, FERC and NERC issued a preliminary report recommending power plants and natural gas producers be required to protect critical equipment from freezing temperatures, as well as providing compensation for generators to recoup weatherization costs – similar to recommendations made following a similar but less severe power outage in Texas in 2011.

The agencies reiterated those recommendations Tuesday but also included more detail on what in went wrong in February.

Among their findings were:

– Eighty-one percent of freeze-related generating unit outages occurred at temperatures above the units’ stated ambient design temperature.

– Eighty-seven percent of unplanned generation outages due to fuel issues were related to natural gas, predominantly related to production and processing issues, while 13 percent involved issues with other fuels such as coal or fuel oil.

– Natural gas fuel supply shortages were caused by natural gas production declines. Some 43 percent of natural gas production declines were caused by freezing temperatures and weather, and 21.5 percent caused by midstream, wellhead or gathering facility power losses, which could be attributed either to rolling blackouts or weather-related outages such as downed power lines.

See here for the September preliminary report, and here for the FERC news release, which includes a link to the full report. It’s nothing we haven’t heard before – you know, going back to 2011 and 1989 – but there it is again. Maybe someone in a position of power will read it this time.

On a related and timely note, we now have a new expression for the higher gas and electricity prices we’re now paying because of this malfeasance:

I’m thinking you’ll probably hear that a few more times over the next 12 months or so. Chris Tomlinson, who has harsh words for the Railroad Commission and their false claim that a “paperwork snafu” was at fault, has more.

Those pesky high utility rates

Still a problem.

Those of us who lived through Winter Storm Uri have hardly forgotten the experience, of course. But we’ll have a little reminder of it on our gas bills. Every month. For the next decade. At least.

And should we face a similar winter weather disaster soon, as we may, well, that’s all right — any costs incurred then can simply be added to the tab, too.

“There’s a huge moral hazard here,” says Doug Lewin, an energy consultant based in Austin who, like many Texans, sustained serious property damage in February, thanks to a busted pipe.

The Railroad Commission of Texas on Wednesday approved a plan under which the Texas Public Finance Authority will issue $3.4 billion in state-backed bonds to pay back the natural gas suppliers that remained in operation during the February storm.

The move has been in the works for a while. During the crisis, as you no doubt recall, the price of gas soared to historic heights, as utilities scrambled over limited supplies. A Bloomberg analysis found that gas producers reaped $11 billion in profits as a result.

Those costs would have been passed on to consumers directly, but legislators this year passed a measure, House Bill 1520, allowing for the bill to be spread out via the securitization process. As ratepayers, we’re still on the hook for the $3.4 billion, but we’ll pay it back in smaller increments, over a longer period of time; utilities expect the costs for each customer to be roughly $5 a month.

The House Research Organization, in its bill analysis, summarized the argument from supporters: “State policies have been cited as contributing factors that led to the widespread power outages experienced by millions of Texans. Therefore, it would be appropriate for the state to play a role in minimizing the impact of the storm to ratepayers and utilities, including through securitization of certain costs.”

[…]

Industry executives and trade associations have suggested that stronger state action is not necessary because power producers themselves have an incentive to winterize. If they weren’t able to produce during Uri, they missed out on an unusually profitable week. During the course of the storm, natural gas spot prices soared across the country. And the Electric Reliability Council of Texas set prices at $9,000 per megawatt-hour — the highest allowable rate and several hundred times higher than the typical rate — in a desperate effort to get more power on the grid.

But that logic doesn’t really hold up to scrutiny. If every producer had adequately winterized, none of them would have been able to make hay over the situation. From a coldly calculating perspective — if we’re just looking at the heartless logic of economic incentives — the optimal move would be to partially weatherize; that way, in the event of another storm, you would have less product to sell, but at comically higher prices.

“I’m not one of these people who thinks the oil and gas industry is evil or something like that, but they need a clear, strong regulatory signal of what they need to do,” said Lewin. “They are for-profit businesses. If they don’t have a clear regulatory signal, they will follow price signals — and the price signal tells them these kind of events are great for the bottom line.”

“What industry doesn’t like making 11 billion in one week?” he added.

Executives themselves seem content with the current regime. In June, for example, oilman Kelcy Warren donated $1 million to Gov. Greg Abbott’s reelection campaign. His company, Energy Transfer Partners, had its best quarter ever during the storm, raking in an additional $2.4 billion as a result.

We’ve discussed this before. Author Erica Greider notes that this will be an issue in the race for Railroad Commissioner. I hope she’s right, and that it’s more than just in that race. The more we talk about it, the better those chances are.

And it’s not just your heating bills.

Have you looked at retail electricity prices lately?

On the suggestion of readers, I pulled up the state-sponsored marketing site — PowerToChoose.org (beware of imitators) — and it was like I stuck my finger in a wall socket. I was shocked.

For as long as The Watchdog can remember, the opening pages usually highlighted kilowatt hour rates of around 6 to 9 cents.

Now the opening pages show double-digit pricing of 10 cents or more.

Prices of the two dominant players in the market — TXU Energy and Reliant Energy — offer an added jolt.

TXU shows one-year plans for 1,000 kWh around 12 cents. Another listed plan offers a 15.9 cents rate.

On the TXU website, I saw different plans that varied from those presented on the state website. A reminder that with all companies, always remember to check both PowerToChoose and that company’s website.

Reliant shows plans on the state site from 13.4 cents to 15.2 cents for various kWh usage.

[…]

What do Texas experts say about these price jumps?

Ed Hirs, an energy fellow at the University of Houston, says the banning of Griddy, which sold power at wholesale prices, removed a major incentive for retailers to keep their prices down to compete.

He says the increase in natural gas prices we’re seeing is another cause because many Texas power plants run on gas. He blames hurricanes which struck the Gulf of Mexico.

He also blames the Texas government’s bailout allowing companies to recoup billions of lost dollars during the horrific February freezeout through the purchase of $6.5 billion in bonds. Those costs will be passed on to consumers.

When the Texas Legislature sided with companies over consumers, he said, “You know the game is fixed.”

Beth Garza, who served until 2019 as the independent monitor of grid operator ERCOT, said companies selling one-year contracts must anticipate higher prices expected to increase during the length of those contracts.

James Boyle, who once led Texas’ Office of Public Utility Counsel, said: “We all know that what happened in the legislative session is that everybody was taken care of except the home folks. And the consumer pays for everybody else’s mistakes. I think that’s reflected in those prices.”

Kelso King, who runs King Energy Consulting and monitors all Public Utility Commission meetings, warns that still to come is the pass-through to consumers of the multi-billion-dollar bailout for energy companies. That was the solution approved by lawmakers and Gov. Greg Abbott.

King added, “For decades, policymakers kept saying that the great thing about a competitive market was that all of the risks would be borne by generators instead of ratepayers. But when it came down to it, unsurprisingly, end use customers were left holding the bag.”

More fruit of the same tree. I agree that the original appeal to our “free market” in electricity was that providers would bear the risk of price fluctuations, but other than the late and not-really-lamented Griddy that hasn’t been the case. Of course, given the massive effect that big donors have on the system, how can you even call it a free market?

Exempt yourself

Is it really a regulation if you can just say nope, sorry, no can do?

The Public Utility Commission of Texas approved weatherization standards for electricity generators on Thursday, requiring them to be ready for winter cold by by Dec. 1 but allowing them to seek exemptions if they fail to comply.

Among the new requirements, generators will be required to shelter systems from wind, protect sensors for components vital to cold-weather operations, inspect insulation, establish schedules for testing systems that guard against freezing and improve installation of systems to monitor components vital to cold-weather operations. They’ll also be required to train workers on cold-weather protocols and file winter weather readiness reports.

Power producers can seek exemptions if they fail to comply with any of the measures, even if they never plan to implement some of the requirements. Exemptions would require approval of the PUC, which regulates the state’s utilities, and ERCOT, which manages the state’s power grid.

ERCOT, which is overseen by the PUC, will be required to inspect power generators this winter. Any generator that experiences multiple forced outages will have to hire an engineer to assess weatherization efforts.

PUC Chairman Peter Lake said Thursday that the weatherization rules were the first wave of other, more permanent standards that will be developed and implemented by ERCOT at a later day. The rules approved Thursday will ensure that the grid is ready for the coming winter.

“We’ve got to make sure this is in place by winter,” Lake said. “This makes sure the reliability of grid will be vastly improved this year compared to last year.”

[…]

Ed Hirs, an energy fellow at the University of Houston, said the weatherization mandates mirror those recommended — but never enacted — after the 2011 freeze and subsequent power outages. He said they’re also similar to rules set up in the federally regulated grids, which have had more success staying online during severe weather. He cautioned, however, that could take a couple of years before generators across Texas finish weatherization efforts, and some may skip making changes by applying for the so-called good-cause exemption.

“Generation companies are concerned about these mandates and not having the revenue stream to fund it,” Hirs said. “If there’s no progress in that direction, and I don’t think there is, we may see a bunch of them say ‘Hey, we’re not ready, please grant us an exemption.’ ”

Alison Silverstein, an Austin-based energy consultant who worked for the PUC from 1995 to 2001 and with the Federal Energy Regulatory Commission from 2001 to 2004, said she doesn’t think the PUC or ERCOT will rubber stamp exemption requests.

That remains to be seen. Like with many other things involving our state government, there’s no benefit of the doubt given the track record and the insistence from Greg Abbott that everything is just fine now. I’d very much like to see some followup reporting in a few months, to see how many exemptions were granted and for what reasons. Maybe this will lead to real improvements, but you’re going to have to show me the facts first.

Our latest wake-up call about our power grid

Same song, next verse.

Federal energy officials vowed to ensure that Texas improves its electricity grid and natural gas system after widespread blackouts during the February freeze led to more than 200 deaths and billions of dollars in property damage.

The Federal Energy Regulatory Commission and the North American Reliability Corp. on Thursday presented their preliminary findings from the winter storm and outlined a series of familiar recommendations to prevent another catastrophic power failure as climate change brings about more severe weather that threatens the nation’s power grids.

These recommendations, similar to the ones FERC issued in the aftermath of the 2011 Texas blackouts, would require power plants and natural gas producers to protect critical equipment from freezing temperatures, to update power generators that experience freeze-related outages and provide compensation for generators to recoup weatherization costs.

“This is a wake-up call for all of us,” FERC Chairman Rich Glick said. “We must take these recommendations seriously, and act decisively, to ensure the bulk power system doesn’t fail the next time extreme weather hits. I cannot, and will not, allow this to become yet another report that serves no purpose other than to gather dust on the shelf.”

Glick said he was “extremely frustrated” that Texas energy regulators and the state’s grid manager ERCOT failed to heed FERC’s recommendations after a February 2011 winter storm left more than 3 million Texans without power as the Super Bowl was played outside Dallas.

You and me both, buddy. You and me both.

Had Texas followed FERC’s guidance a decade ago, the state could have avoided February’s deadly and devastating blackouts, he said.

“In this day and age, we have people that froze to death because of power outages. That’s beyond unacceptable,” Glick said. “The worst part about this, one of the points that frustrates me the most, is that some of it was avoidable.”

[…]

In a 31-page report published Thursday, FERC said the February winter storm caused the largest forced power outages in the nation’s history, and was the third largest blackout after the Northeast blackout in 2003 and the West Coast blackout in 1996. The February freeze was the fourth severe winter event over the past decade, knocking out 61,800 megawatts of power across the Midwest and South, including Texas and Louisiana.

The Texas power grid managed by ERCOT received the harshest effects of the freeze. The storm knocked out an average of 34,000 megawatts of power on ERCOT’s grid, nearly half of its record winter demand load of 69,871 megawatts.

FERC said the biggest factors contributing to power plants failing were the lack of weatherization of critical equipment and natural gas supply issues at power plants. Nearly 58 percent of the power generators that went offline during the storm were natural gas plants.

You can find the FERC report here and their press release here. If you want to find any plan that Greg Abbott has to take action on this report, you’re going to have to look a lot harder.

There will probably be another freeze this winter

Hopefully not as bad, but, well, you know.

Savor the rest of the summer and all of fall because this winter in Texas is going to be “frigid and flaky” similar to February’s deadly storm, according to the Farmers’ Almanac.

The Almanac, which has been predicting the weather outlook for farmers and gardeners for over 200 years, says to expect a “frosty flip-flop winter” for the United States. For most of the country, there will be near-normal amounts of snow with some notable month-to-month variations, the Alamanc says.

In late January, Texas and Oklahoma may be in for icy weather “like you experienced last winter,” according to the Almanac’s report.

The Farmers’ Almanac previously predicted Texas’ winter storm Uri in which heavy snowfall, ice storms and bitter temperatures brought an enormous strain on the state’s power grid, leaving millions without electricity. Over 200 people died.

[…]

Before Texans start booking resort days in Cancun, the almanac is hoping the conditions will not be as bad as Uri.

“Hopefully, it won’t be as robust, but it doesn’t hurt to be prepared,” the Almanac said.

We can talk about Greg Abbott’s approval ratings right now all we want. If we have another freeze that’s anything like this past February, especially if people lose power like they did this year, forget it. After all his claims about how everything was fixed now, he better damn well hope so.

A timeline of the blackout

Of interest.

A new report from University of Texas at Austin energy experts lays much of the blame for power outages during the state’s deadly February freeze on the failure of natural gas producers to fully weatherize their facilities.”

The natural gas system could not meet demand,” the authors of the 101-page study wrote. “The production losses stemmed principally from freeze-offs, icy roads and electric outages to the equipment used in the natural gas industry.”

UT issued the study Tuesday, the same day the state’s health department revised its official death toll from the disaster, raising it to 210 from 151. However, at least one data-driven report suggests the actual number may exceed 700.

[…]

For the study, UT researchers looked at the performance of 27 natural gas facilities during the freeze and found that as temperatures dropped, the operators’ pipelines and equipment ceased to function, resulting in an 85% falloff when power companies needed the fuel.

Indeed, 18 of the natural gas facilities it studied had “zero output” on February 17, the peak of the storm.

In addition to their human cost, the failures resulted in massive charges for the state’s power generators, according to the report. CPS Energy, for example, tallied losses on natural gas fuel purchases of as much as $850 million, and losses on purchased power costs of as much as $250 million.

The 101 page report is here. Neither of us is likely to read through the whole thing, but the Findings section of the Executive Summary give you the main points:

The failure of the electricity and natural gas systems serving Texas before and during Winter Storm Uri in February 2021 had no single cause. While the 2021 storm did not set records for the lowest recorded temperatures in many parts of the state, it caused generation outages and a loss of electricity service to Texas customers several times more severe than winter events leading to electric service disruptions in December 1989 and February 2011. The 2021 event exceeded prior events with respect to both the number and capacity of generation unit outages, the maximum load shed (power demand reduction) and number of customers affected, the lowest experienced grid frequency (indicating a high level of grid instability), the amount of natural gas generation experiencing fuel shortages, and the duration of electric grid operations under emergency conditions associated with load shed and blackout for customers. The financial ramifications of the 2021 event are in the billions of dollars, likely orders of magnitude larger than the financial impacts of the 1989 and 2011 blackouts.

Factors contributing to the electricity blackouts of February 15-18, 2021, include the following:

  • All types of generation technologies failed. All types of power plants were impacted by the winter storm. Certain power plants within each category of technologies (natural gas-fired power plants, coal power plants, nuclear reactors, wind generation, and solar generation facilities) failed to operate at their expected electricity generation output levels.
  • Demand forecasts for severe winter storms were too low. ERCOT’s most extreme winter scenario underestimated demand relative to what actually happened by about 9,600 MW, about 14%.
  • Weather forecasts failed to appreciate the severity of the storm. Weather models were unable to accurately forecast the timing (within one to two days) and severity of extreme cold weather, including that from a polar vortex.
  • Planned generator outages were high, but not much higher than assumed in planning scenarios. Total planned outage capacity was about 4,930 MW, or about 900 MW higher than in ERCOT’s “Forecasted Season Peak Load” scenario.
  • Grid conditions deteriorated rapidly early in February 15 leading to blackouts. So much power plant capacity was lost relative to the record electricity demand that ERCOT was forced to shed load to avoid a catastrophic failure. From noon on February 14 to noon on February 15, the amount of offline wind capacity increased from 14,600 MW to 18,300 MW (+3,700 MW).2 Offline natural gas capacity increased from 12,000 MW to 25,000 MW (+13,000 MW). Offline coal capacity increased from 1,500 MW to 4,500 MW (+3,000 MW). Offline nuclear capacity increased from 0 MW to 1,300 MW, and offline solar capacity increased from 500 MW to 1100 MW (+600 MW), for a total loss of 24,600 MW in a single 24-hour period.
  • Power plants listed a wide variety of reasons for going offline throughout the event. 3 Reasons for power plant failures include “weather-related” issues (30,000 MW, ~167 units), “equipment issues” (5,600 MW, 146 units), “fuel limitations” (6,700 MW, 131 units), “transmission and substation outages” (1,900 MW, 18 units), and “frequency issues” (1,800 MW, 8 units). 4
  • Some power generators were inadequately weatherized; they reported a level of winter preparedness that turned out to be inadequate to the actual conditions experienced. The outage, or derating, of several power plants occurred at temperatures above their stated minimum temperature ratings.
  • Failures within the natural gas system exacerbated electricity problems. Natural gas production, storage, and distribution facilities failed to provide the full amount of fuel demanded by natural gas power plants. Failures included direct freezing of natural gas equipment and failing to inform their electric utilities of critical electrically-driven components. Dry gas production dropped 85% from early February to February 16, with up to 2/3 of processing plants in the Permian Basin experiencing an outage.5
  • Failures within the natural gas system began prior to electrical outages. Days before ERCOT called for blackouts, natural gas was already being curtailed to some natural gas consumers, including power plants.
  • Some critical natural gas infrastructure was enrolled in ERCOT’s emergency response program. Data from market participants indicates that 67 locations (meters) were in both the generator fuel supply chain and enrolled in ERCOT’s voluntary Emergency Response Service program (ERS), which would have cut power to them when those programs were called upon on February 15. At least five locations that later identified themselves to the electric utility as critical natural gas infrastructure were enrolled in the ERS program.
  • Natural gas in storage was limited. Underground natural gas storage facilities were operating at maximum withdrawal rates and reached unprecedently-low levels of working gas, indicating that the storage system was pushed to its maximum capability.

The ERCOT system operator managed to avoid a catastrophic failure of the electric grid despite the loss of almost half of its generation capacity, including some black start units that would have been needed to jump-start the grid had it gone into a complete collapse.

Just as a reminder, the grid was not on the first special session agenda, and as of today isn’t on the second session’s agenda. I have heard it suggested that Abbott could add grid items to the agenda, or put them on but near the bottom of the agenda for this special session, to make it harder for the Dems to be away. The main problem with that analysis is that Abbott has been busy telling everyone in sight that the grid has been totally fixed. What’s to put on the agenda if that’s really the case? His problem for now, all of ours the next time the words “rolling blackouts” get mentioned.

One million reasons why Greg Abbott thinks the grid is just fine

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.

Here’s your special session agenda

They call this “red meat”, but it’s really just bullshit.

Gov. Greg Abbott has announced the agenda for the special legislative session that begins Thursday, asking lawmakers to prioritize 11 issues that largely appeal to conservatives who wanted more out of the regular session.

The announcement of the agenda came just over 24 hours before lawmakers are set to reconvene in Austin.

The agenda includes Abbott’s priority bills related to overhauling Texas elections and the bail system, as well as pushing back against social media “censorship” of Texans and the teaching of critical race theory in schools. Those issues were anticipated after they did not pass during the regular session and Abbott faced pressure to revive them or had already committed to bringing them back.

[…]

The special session agenda also includes funding for the legislative branch, which Abbott vetoed last month. He did so after House Democrats staged a walkout in the final hours of the regular session that killed the priority elections bill. The inclusion of the legislative funding raises the possibility that lawmakers could restore paychecks for their staff — and other staff at the Capitol — before the next fiscal year begins on Sept. 1. More than 2,000 staffers are affected by the veto of the Legislative funding, which Democrats have called an executive overreach of power.

Late last month, House Democrats and legislative staffers asked the state Supreme Court to override it. The court had not ruled in the case yet.

The Democrats’ walkout prompted a flood of national attention, and now the minority members must decide how to try to derail it in the special session with their staff pay on the line. Republicans also have their work cut out for them in the special session, faced with preventing another embarrassing defeat of the elections bill and remedying two provisions they claimed after the regular session were mistakes.

The special session is set to start at 10 a.m. Thursday and could last up to 30 days, with the potential for Abbott to add more items as it proceeds. It is one of at least two special sessions expected this year, with a fall special session coming to address redistricting and the spending of billions of dollars of federal COVID-19 relief funds.

Abbott’s agenda for the first special session notably does not include anything about the state’s electric grid, which was exposed as deeply vulnerable during a deadly winter weather storm in February that left millions of Texans without power. Lawmakers made some progress in preventing another disaster during the regular session, but experts — as well as Patrick — have said there is more to do. Last month, calls for the Legislature to take further action to fix the power grid were renewed when grid officials asked Texans to conserve energy.

Despite Abbott’s recent claim that grid is better than ever, he sent a letter Tuesday to the state’s electricity regulators outlining a number of steps he would like them to take to “improve electric reliability.” But it appears Abbott does not want to reopen legislative debate on the issue for now.

Just to recap, I continue to expect the Supreme Court to delay and hope the legislative budget veto issue becomes moot. I don’t think there’s much if anything that Democratic legislators can do to stop any of these bills if Republicans are determined to pass them – it’s not out of the question that on some of them the Republicans are not sufficiently unified – so the best thing to do is to try to at least make sure everything has a real committee hearing first. Finally, I’m not surprised that Abbott has no interest in revisiting the power grid, not when he’s already staked his claim on everything being just fine now. The other piece of business for the Dems is to hammer this point over and over again, until it seeps into the public consciousness. Good luck, y’all. This is going to suck. The Chron has more.

Abbott tells the PUC to, like, “do something” about electricity and stuff

He’s a Very Serious man making Very Serious proposals.

Gov. Greg Abbott on Tuesday gave state electricity regulators marching orders to “improve electric reliability.”

In a letter to the Public Utility Commission, Abbott directed the three-person board of directors, who he appoints, to take action that would require renewable energy companies to pay for power when wind and solar aren’t able to provide it to the state’s main power grid, echoing a move state lawmakers rejected in May.

Abbott also told the PUC to incentivize companies to build and maintain nuclear, natural gas and coal power generation for the grid — which failed spectacularly during a February winter storm, leaving millions of Texans without power or heat for days in below freezing temperatures.

Texas energy experts were skeptical that Abbott’s orders would actually improve the reliability of the state grid, which operates mostly independently of the nation’s two other major grids.

“What is here is not a serious or prudent plan for improving the grid,” Daniel Cohan, an associate professor of civil and environmental engineering at Rice University, said in an interview Tuesday. “It’s more of a political job favoring some [energy] sources over others. For Texans to have a more reliable power supply, we need clearer thinking that makes the best of all the sources we have.”

Abbott’s letter also called on the PUC to direct the state’s main grid operator, the Electric Reliability Council of Texas, to better schedule when power plants are offline, an issue that caused tension between state regulators and power generators after some power plants unexpectedly went offline in June and led ERCOT to ask Texans to turn their thermostats up to 78 degrees for a week during a heat wave to conserve energy.

Abbott responded to the plant outages by declaring the power grid “is better today than it’s ever been.”

Does anyone believe that? I don’t know what the odds are of another major power failure between now and, say, next November, but does anyone think such platitudes will be accepted by the public if one does happen? Even Dan Patrick thinks that power grid reform items – most of which never went anywhere during the session – should be on the special session agenda. Maybe we all get lucky and nothing bad happens any time soon, but if that’s the case it won’t be because Abbott was busy urging us all to clap louder.

We’ll be paying for the freeze for a long time

What’s more, we have done nothing to prevent the same thing from happening again.

Publicly funded state agencies needing to keep the lights and heat on during the freeze racked up huge bills. In February 2020, the Texas Department of Criminal Justice, which operates the state’s prisons, paid about $1.2 million for natural gas. This February the cost soared to nearly $8.5 million.

The University of Texas-Austin paid $940,000 for gas in February 2020. In 2021: $3.65 million.

Last month, state legislators passed laws to help companies borrow billions of dollars to pay for storm-inflated power costs and bill ratepayers over time to pay it back. Yet well before that, many Texas cities that own public utility companies already had been forced to scrounge up additional millions to cover gas and electric bills hugely inflated by the storm-caused shortages.

Outside of Dallas, Denton borrowed $140 million. Georgetown, just north of Austin, borrowed $48 million to cover the cost of providing electricity to its residents during the storm. Ratepayers will have to cover that, as well as a projected $5 million in interest and costs over the term of the loan.

Other cities dipped into their savings accounts to pay the storm-inflated power costs, depleting reserve funds. Garland siphoned millions from its rainy-day account. Weatherford, a small city outside of Fort Worth, drew down $13.7 million.

Wherever the money came from, eventually it will be repaid by local citizens, said Steve Moffitt, vice president of Schneider Engineering, a Boerne-based company working with municipal utility companies across the state to find the extra money. “At the end of the day, it has to come from customers somewhere,” he said.

The small city of Hearne borrowed $1.9 million to cover costs incurred by its publicly owned electric utility company. Ratepayers will pay off the debt over the next 10 years, said City Manager John Naron.

“Usually if we get a $2 million loan, we’re fixing streets, the sewage system, street lights,” he said. “Now we’re borrowing $2 million and getting nothing for it.”

When the dust cleared on the biennial legislative session that ended June 1, one thing was clear. Although it was ordinary Texans who suffered when the freeze hit four months ago — millions were left shivering in the dark for days; hundreds died — it is also ordinary Texans who would foot much of the bill, said Tim Morstad, associate director of AARP Texas.

“Consumers are being forced to prop up the system that failed us,” he said.

[…]

The magnitude of the financial fallout is difficult to digest. Experts estimate that based on the sky-high prices, nearly $50 billion-worth of electricity was consumed in Texas during the one-week storm — 250 times the normal cost, said Beth Garza, an energy analyst for R Street who from 2014 to 2019 was ERCOT’s independent market monitor, which watchdogs the electricity market.

Companies that had gas and electricity to sell cashed in on a Uri  windfall. Some Wall Street investors made millions, too.

For those forced to buy gas and electricity during the height of the freeze it was expensive at best, catastrophic at worst. Brazos Electric Power Cooperative, the state’s largest and oldest member-owned electric company, declared bankruptcy after racking up about $2 billion in charges when its generators failed.

To spare ratepayers the financial pain of getting hit with giant utility bills all at once, last month state lawmakers passed several laws to help the biggest losers borrow money and pay it back over time. The laws are complex, and analysts and companies said they are still deciphering how they will be used.

Pending high-stakes legal battles over the storm’s giant bills add more uncertainty to the final tab. “There are a zillion contractual disputes underway right now,” said Garza, pointing out that those, too, will end up costing companies – and their customers — giant legal fees.

Still, analysts projected the taxpayer tab would come to roughly between $7 and $9 billion. Yet that doesn’t include numerous other hidden costs.

The primary advantage to our market for power and electricity has always been low prices. Lots of firms offer a variety of plans, both fixed and flexible rates, and for the most part it has worked pretty well, as long as you do a bunch of research and remember to switch plans again before your low-rate plan ends and you get dumped into a default higher-rate plan. (Some people do lots of research.) All of this is predicated on the Texas energy market being geared towards low prices, and the way it does that is by not mandating capacity. There’s no backup power, no plants generating extra power that isn’t used, and that means we’re not paying for anything we’re not using. It’s efficient, and that efficiency keeps prices down.

The down side is what we saw in February. Because there was no extra capacity, when a number of plants went down, there wasn’t any power to spare. The only way to get more juice was to pay for it, and when prices are allowed to be unconstrained, you can be sure someone is going to make a buck off of it. We also learned that another key ingredient to our everyday low prices for electricity was that the power plants could be and were run as super low-cost operations, which in this context meant no money spent on weatherization. I think we all know how that turned out.

The argument in favor of our system is that we have paid a lot less for our electricity over a long period of time, so that even with the price shocks of February and the borrowing that various municipalities and utilities and co-ops have had to do, we’re still coming out ahead. But that isn’t of much help right now, and as we did nothing to change the fundamentals of our power market, we could face the same situation again at any time. People will be paying more now for what happened his past winter, and they have no insurance against a repeat. Even more, I don’t think a lot of people understand that. I don’t think we’re any more prepared mentally and emotionally for the next time this happens than we were this February. Maybe if we go another ten years before it happens again it won’t much matter. Do you want to make that bet? Like it or not, you already have.

Nobody knows why the grid was short on power

Really inspires confidence, doesn’t it?

Last Monday, Texas’ main power grid operator asked Texans, mid-heat wave, to turn their thermostats to 78 degrees during the afternoon and evening for the week to reduce electricity demand on the grid after 12,000 megawatts of power generation unexpectedly went offline — enough to power 2.4 million homes on a hot summer day.

By the end of the week, that appeal from the Electric Reliability Council of Texas expired without a public announcement, and ERCOT officials still have not said why they asked Texans to cut back on electricity use.

Were there damages to the power grid infrastructure stemming from February’s deadly winter storm? Were there nefarious actors looking to manipulate the electricity market? What does this mean for power generation during the rest of the hot Texas summer?

ERCOT hasn’t said — or released data to answer any of these questions raised by industry experts. And that is exactly how the Texas power grid is supposed to work, energy experts said.

“ERCOT knows what plants fail, but not why,” said Bob King, an energy consultant in Austin who has worked in the Texas energy industry for more than 30 years.

[…]

In the meantime, ERCOT’s independent watchdog will investigate what happened. Beth Garza, who was director of the watchdog from 2014 to 2019, said that’s standard procedure after such an event.

“They will look if there is any indication if there is any nefarious or bad acting on any particular generations’ part,” Garza said.

Last week’s power generation outages marked the second time ERCOT has asked Texans to cut back on electricity use since February’s storm. Garza and other experts also raised concerns about the winter storm’s impact on “thermal” sources of energy, which in Texas are largely powered by natural gas plants.

“One thing I’d be curious about: What the effects of February’s cold weather was on thermal units,” Garza said. “Was some of that being worked on and fixed (last week)?”

We do know that it wasn’t because too many plants were down for routine maintenance, which contradicts a claim made by Greg Abbott. We may find out some more information soon, as the PUC has ordered ERCOT to release its data in the next seven days, though how much information we’ll get is not clear. The bigger point, as was made in the story, is that all this happened at a time when it wasn’t as hot as it’s going to get later in the summer. What will be in for then? Like I said, it doesn’t inspire confidence. Reform Austin has more.

All juiced up with no place to go

Seems like there should be a better solution for this.

In 2005, the Texas Legislature approved the development of a network of electric transmission lines to send wind and solar power from West Texas to population centers in other parts of the state. The landmark project transformed the renewable energy industry and the slice of West Texas that Rep. Drew Darby calls home.

Metallic fields of photovoltaic solar panels now stretch across once bare scrub land. Lines of sky-scraping wind turbines reach to the horizon. And with those renewable energy projects came “some of our only opportunities for economic development” in rural Texas, said Darby, a Republican from San Angelo.

But those opportunities are at risk as companies cancel or postpone new wind and solar farms, and the list of planned projects keeps getting shorter. One key reason: generators can’t be sure that they can get their power to market.

The rapid growth of renewable energy, particularly wind power, has outstripped the carrying capacity of transmission lines. Even when demand soars and electricity supplies run short, the state’s grid manager, the Electric Reliability Council of Texas, must limit the power West Texas wind and solar farms can sell into the grid because of transmission constraints.

“I started seeing some projects go off the boards, and companies were saying they’re not going to build,” Darby said. “I asked why, and they said ‘We’ve had curtailments. We’re going to have to curtail production at certain times.’”

That West Texas has plenty of power but no place to go carries more than a little irony as policy makers and regulators focus on increasing electricity supplies following the deadly February power crisis. ERCOT is forecasting record power demand this summer, with a reserve margin — the cushion of extra generation available when supplies get tight — that’s higher than in recent years, but still well below the margins with which other grids operate.

[…]

Even as parts of the state bake in the summer heat and homeowners crank up air-conditioning units, the transmission limits mean the excess power generated out West won’t make it to where demand will be highest.

Ross Baldick, an emeritus professor of electrical and computer engineering at the University of Texas at Austin, said West Texas transmission upgrades completed in 2014 can transport about 18,500 megawatts of electricity, but more than 20,000 megawatts of wind energy alone are generated in the area. Due to other technical constraints, grid officials must limit power through those lines to less than 12,000 megawatts to keep them working properly.

Think about it like water pipes, Baldick said. One main pipe feeds smaller pipes that provide water to individual homes. If you try to force more and more water into the pipes, you reach a limit where the pipes could burst. To avoid that problem, you would have two choices: build more pipes to offset the stress on the existing pipes, or limit the amount of water flowing through the pipes.

Those are the choices for the power grid: build more transmission to transport increasing amounts of renewable power from the west, or limit the amount of power on the transmission lines.

As the story notes, West Texas has all of the conditions you could want for solar and wind energy generation, but none of it matters if you can’t hook it up to the grid. As a result, the projections of wind and solar energy for the year are declining. The House passed a bill by Rep. Darby to expedite the process ERCOT uses to study and plan for new transmission projects and the Public Utility Commission’s ability to approve them, but it died in the Senate. The power companies themselves aren’t going to build more transmission capacity, so here we are. Sure seems like there ought to be a better way.

We go to the next freeze with the power grid reform we have, not the power grid reform we wanted

It is what it is, and what it is isn’t much.

Texas lawmakers on Sunday passed a final proposal to shore up the state’s power grid in response to this year’s deadly outage crisis, agreeing on a raft of reforms that experts welcomed but also fear won’t go far enough.

The legislation, Senate Bill 3, would require power plants and some natural gas suppliers to prepare their operations for extreme cold, a step that state regulators and many companies have avoided for decades despite repeated blackouts and promises that market incentives would ensure reliability.

It would also create a statewide emergency alert system, force industry participants to communicate more often and mandate that key gas facilities be registered as critical so their power isn’t unintentionally shut off during shortages. Hundreds of gas facilities reportedly lost power during the winter storm, pinching off fuel supplies to power plants.

[…]

The proposals address several longstanding weaknesses, though still amount to a gamble in the wake of one of the state’s deadliest natural disasters, leaving its already isolated power grid vulnerable to similar disruptions for the coming winter, before key weatherization requirements would take effect.

Energy experts have warned that without quick structural improvements to power plants, gas wells and the supply chain that connects them, millions of Texas homes could again be without power in dangerously frigid conditions. February’s storm knocked out power to an estimated 4.5 million homes and killed at least 200 people — and likely many more.

Critics also caution that the final provisions leave broad discretion to gas suppliers, who provide most of the fuel for the electricity grid. The legislation allows for minimal fines against those that don’t comply and leaves oversight of infrastructure updates to the Texas Railroad Commission, whose members receive funding from the industry and have long opposed weather requirements.

The state’s gas production fell more than 20 percent over five days during the storm.

This month, Republicans in the House rejected amendments from Democrats that would have increased penalties for gas suppliers that don’t winterize and would have required progress on winterization within six months of the measure becoming law. Democrats still praised the reforms that made it into the final draft.

“I voted for this bill because there is a lot of good in it,” Rep. Jon Rosenthal, a Houston Democrat and engineer in the oil and gas industry, tweeted shortly after the vote. “But make no mistake – this bill is not enough to ensure that we won’t have another massive blackout. It leaves much discretion to RRC/PUC/ERCOT and the guardrails aren’t nearly tight enough.”

See here, here and here for some background. We may go to a special session for the Republicans’ failure to muscle through the voter suppression bill and some of Dan Patrick’s pet priorities, but taking substantial action on the power grid will not be on the agenda. It’s always hard to say what issues will and won’t be relevant and germane to voters in the next election because you never know what else may come up, but to the extent that this issue will be debated it will be in the terms of what Abbott et al thought was important enough to bring legislators back to finish off and what was not. Whether what was actually done will make a difference or not likely won’t be known until the next big freeze, at which point we’ll see if we can add 2021 to the years we look back on as squandered opportunities to take meaningful action. Better hope it’s not next year if you’re a Republican.

Another upward revision of the freeze death count

Buzzfeed News takes a deep dive.

The true number of people killed by the disastrous winter storm and power outages that devastated Texas in February is likely four or five times what the state has acknowledged so far. A BuzzFeed News data analysis reveals the hidden scale of a catastrophe that trapped millions of people in freezing darkness, cut off access to running water, and overwhelmed emergency services for days.

The state’s tally currently stands at 151 deaths. But by looking at how many more people died during and immediately after the storm than would have been expected — an established method that has been used to count the full toll of other disasters — we estimate that 700 people were killed by the storm during the week with the worst power outages. This astonishing toll exposes the full consequence of officials’ neglect in preventing the power grid’s collapse despite repeated warnings of its vulnerability to cold weather, as well as the state’s failure to reckon with the magnitude of the crisis that followed.

Many of the uncounted victims of the storm and power outages were already medically vulnerable — with chronic conditions including cardiovascular disease, diabetes, and kidney problems. But without the intense cold and stress they experienced during the crisis, many of these people could still be alive today.

[…]

The BuzzFeed News analysis of deaths during the storm is based on mortality data from the CDC. It relies on a method called “excess deaths” analysis, recently used to estimate the full toll of the COVID-19 pandemic.

Our analysis, reviewed by three independent experts, suggests that between 426 and 978 more people than expected died in Texas in the week ending February 20 alone. Our best estimate is that 702 people were killed by the storm that week. Even the lowest end of the range is almost three times the number officials have acknowledged. Neighboring states that were hit hard by the winter storm but did not experience the widespread power outages seen in Texas did not show a spike in deaths.

BuzzFeed News reached out to relatives of people who died during the power outages, identified from dozens of wrongful death lawsuits as well as death reports obtained from public records requests to medical examiners in eight of the biggest counties in Texas. Interviews revealed stories of anguish and confusion, as families struggled to find out exactly how their relatives died.

This confusion also poses real economic challenges for survivors. For Mary Gonzales, the delay in obtaining a cause of death for her husband meant she was unable to claim an income from his pension for almost three months. And without an official acknowledgment tying their loved ones’ deaths to the storm, families will be unable to claim federal assistance for funeral costs.

The high death toll adds pressure on state legislators, energy regulators, and Texas Gov. Greg Abbott to harden the state’s infrastructure to avert another deadly disaster.

Abbott’s press secretary, Renae Eze, did not respond to questions about the significantly higher death toll or whether the state would investigate further, but said Abbott was “working collaboratively with the House and Senate to find meaningful and lasting solutions to ensure these tragic events are never repeated.”

“The Governor joins all Texans in mourning every single life lost during the winter storm, and we pray for the families who are suffering from the loss of a loved one,” she said.

But with the state’s legislative session ending on May 31, lawmakers only have a week left to finalize a proposal to address some of the vulnerabilities that made the February storm so horrific.

“As it stands, nothing has happened,” said Michael Webber, a professor of mechanical engineering focused on energy infrastructure at the University of Texas at Austin.

As of the end of March, the official death count was at 111, and a Houston Chronicle analysis in early April estimated it at 194. As this story among others notes, there are only so many medical examiners in the state, and only so many deaths result in an autopsy. As was the case with COVID, some deaths are attributed to chronic conditions like heart disease despite the obvious external cause. Similar statistical methods that estimate “excess deaths” have been used for COVID as well, and you can read how they arrived at these figures in the story. We’ll never know an exact number, but we do know that the official number will always be too low. Daily Kos has more.

Abbott knew the blackouts were coming

Good morning. Take a deep, cleansing breath, have a seat, and then read this.

Texas Governor Greg Abbott’s office knew of looming natural gas shortages on February 10, days before a deep freeze plunged much of the state into blackouts, according to documents obtained by E&E News and reviewed by Ars.

Abbott’s office first learned of the likely shortfall in a phone call from then-chair of the Public Utility Commission of Texas DeAnne Walker. In the days leading up to the power outages that began on February 15, Walker and the governor’s office spoke 31 more times.

Walker also spoke with regulators, politicians, and utilities dozens of times about the gas curtailments that threatened the state’s electrical grid. The PUC chair’s diary for the days before the outage shows her schedule dominated by concerns over gas curtailments and the impact they would have on electricity generation. Before and during the disaster, she was on more than 100 phone calls with various agencies and utilities regarding gas shortages.

After the blackouts began, Abbott appeared on Fox News to falsely assert that wind turbines were the driving force behind the outages.

Wind turbines were a factor, but only a small one. Wind in Texas doesn’t produce as much power in the winter, and regulators don’t typically rely on wind turbines to provide significant amounts of power. Instead, regulators anticipated that natural gas and coal power plants would meet demand.

In public, Bill Magness, then-CEO of ERCOT, the state’s electric grid regulator, didn’t seem concerned about the approaching weather. In a virtual meeting on February 9, Magness said, “As those of you in Texas know, we do have a cold front coming this way… Operations has issued an operating condition notice just to make sure everyone is up to speed with their winterization and we’re ready for the several days of pretty frigid temperatures to come our way.” During the two-and-a-half-hour public portion of the meeting, Magness devoted just 40 seconds to the unusual weather.

There’s more, so read the rest. I don’t know about you, but I’m beginning to think that Greg Abbott isn’t very good at this “being Governor” thing. Maybe we should consider electing someone else. Just a thought.

How many times will we fail to fix our power grid?

By “we”, I mean our Legislature, and the PUC, and the Governor, and the Railroad Commission, and pretty much everyone else in charge of this state.

Ten years ago, Texas power plants froze during a fast-moving winter storm, causing rolling electricity blackouts across the state. Outraged Texas regulators and lawmakers, vowing to crack down, debated requiring energy companies to protect their equipment against extreme weather to ensure reliability.

But they didn’t.

Nine years ago, two state agencies that regulate utilities and the oil and gas industry warned that natural gas facilities that lost power during outages couldn’t feed electricity generation plants, creating a spiral of power loss. The agencies jointly recommended that lawmakers compel gas suppliers and power plants to fix the problem.

But they didn’t.

Eight years ago, economists warned that the state’s free-market grid left companies with little incentive to build enough plants to provide backup power during emergencies. With the support of then-Gov. Rick Perry, legislators and regulators considered increasing power rates to encourage the construction of more power plants, so that Texas, like other states, would have sufficient reserves.

But they didn’t.

In the wake of each power failure, or near-failure, over the past decade, Texas lawmakers have repeatedly stood at a fork in the road. In one direction lay government-mandated solutions that experts said would strengthen the state’s power system by making it less fragile under stress. The other direction continued Texas’ hands-off regulatory approach, leaving it to the for-profit energy companies to decide how to protect the power grid.

In each instance, lawmakers left the state’s lightly regulated energy markets alone, choosing cheap electricity over a more stable system. As a result, experts say, the power grid that Texans depend on to heat and cool their homes and run their businesses has become less and less reliable — and more susceptible to weather-related emergencies.

“Everyone has been in denial,” said Alison Silverstein, a consultant who works with the U.S. Department of Energy and formerly served as a senior adviser at the Federal Energy Regulatory Commission. “They treat each individual extreme event as a one-off, a high-impact, low-frequency event, which means, ‘I hope it doesn’t happen again.’”

With each passing year, the grid has steadily become less reliable. In 1989, Texas suffered a cold snap considered worse if not equal to the winter storm earlier this year yet managed to keep the grid functioning, with only a few hours of rotating outages.

By comparison, February’s Winter Storm Uri brought the Texas power grid to within five minutes of complete collapse, officials acknowledged. Millions of residents were left without power for days in subfreezing temperatures; nearly 200 died.

“Our system now is more vulnerable than it was 30 years ago,” said Woody Rickerson, vice president of grid planning and operations at the Electric Reliability Council of Texas. “With the generation mix we have now, the weather has the ability to affect wind and solar and (the gas supply). Those are things we can’t anticipate.”

It’s the first of a three-part series, and it’s a long read that will make you mad. The simple fact is that the system we have now works very well for some wealthy interests, and they are very good at defending their turf. Throw in an unwavering belief in the invisible hand of the free market and the general incentive towards doing nothing, and voila. Even the incremental steps forward have turned out to be meaningless:

As a result, the only legislation to come out of the 2011 storm was a minor bill from then-state Sen. Glenn Hegar, a Katy Republican, which required power companies to file weatherization plans with the PUC each year.

Two months after that bill was signed into law, the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation put out a report of more than 350 pages, urging Texas to enact stricter weatherization standards for power plants and natural gas operators.

And they did to a degree, with ERCOT putting out best practices, conducting annual workshops and inspecting plants every three to four years.

But there were two problems. First, despite FERC’s recommendation, the state Legislature never gave the PUC authority to penalize power plants that did not comply, making weatherization voluntary. While progress was made, some companies opted not to bring their plants up to code, said Rickerson, the ERCOT vice president.

“Ultimately those were financial decisions that had to be made,” he said. “How much is someone willing to invest in a power plant that’s 50 years old and going to retire in a few years?”

More significantly, the best practices ERCOT was sharing were designed for a cold snap like that seen in 2011. While cold, with temperatures in Dallas dropping as low as 14 degrees, it was nothing compared to the 1989 winter storm, when temperatures dropped to 7 degrees in Houston and minus-7 in Abilene, let alone 1899, when the state’s all-time low temperature of minus-23 degrees was set in the Panhandle town of Tulia.

So when temperatures dipped into the single digits for days on end this February, most Texas power plants were simply not prepared. Exterior control equipment and fuel lines froze, not to mention coal piles and wind turbine blades.

“One power plant under freezing for 200-plus hours. That’s not a thing, right?” said Chris Moser, executive vice president of operations for NRG Energy, of expectations going into the winter. “If you look at the math ERCOT did prior to the seasonal assessment, it looked like (there was plenty of power). But then you have 80 to 85 plants not showing up. It was a failure of imagination.”

As for Hegar’s legislation, it has proved even more toothless than it appeared at the time.

According to a recent report from ERCOT, the agency was never given authority to judge the weatherization plans but only to check that they were being implemented. And a requirement in Hegar’s bill that the PUC produce a one-time Weather Emergency Preparedness Report, which was quietly published in 2012 and found that many power companies were still doing a poor job implementing reforms, drew little attention from state officials.

“When you’re on the commission, you’re dealing with what’s immediately in front of you,” said Ken Anderson, a former public utility commissioner. “I’m not sure how much follow-up occurred.”

Seems like this is a pretty good campaign issue for next year, especially given what is being prioritized over making the grid more robust. I’m just saying.

So we bail out the electricity providers

I guess I don’t know enough about our weird electricity market to suggest a viable alternative to this, but it sure doesn’t speak well of our system.

An approximately $2.5 billion plan to bail out Texas’ distressed electricity market from the financial crisis caused by Winter Storm Uri in February was approved by the Texas House Thursday.

The legislation would impose a fee — likely for the next decade or longer — on electricity companies, which would then get passed on to residential and business customers in their power bills. Lawmakers on Wednesday said they could not yet estimate how much it would impact Texans’ electricity bills.

House lawmakers sent House Bill 4492 to the Senate on Thursday after a 129-15 vote. A similar bill is advancing in the Senate.

Some of the state’s electricity providers and generators are financially underwater in the aftermath of the February power outages, which left millions without power and killed more than 100 people. Electricity companies had to buy whatever power was available at the maximum rate allowed by Texas regulations — $9,000 per megawatt hour — during the week of the storm (the average price for power in 2020 was $22 per megawatt hour). Natural gas fuel prices also spiked more than 700% during the storm.

Several companies are nearing default on their bills to the Electric Reliability Council of Texas, which manages the grid that covers most of the state and facilitates financial transactions in it.

Rural electric cooperatives were especially hard hit; Brazos Electric Power Cooperative, which supplies electricity to 1.5 million customers, filed for bankruptcy citing a $1.8 billion debt to ERCOT.

State Rep. Chris Paddie, R-Marshall, the bill’s author, said a second bailout bill will be necessary during the current legislative session for severely distressed electric cooperatives.

“This is a financial crisis, and it’s a big one,” James Schaefer, a senior managing director at Guggenheim Partners, an investment bank, told lawmakers at a House State Affairs Committee hearing in early April. He warned that more bankruptcies would cause higher costs to customers and hurt the state’s image in the eyes of investors.

“You’ve got to free the system,” Schaefer said. “It’s horrible that a bunch of folks have to pay, but it’s a system-wide failure. If you let a bunch of folks crash, it’s not a good look for your state.”

If approved by the Senate and Gov. Greg Abbott, a newly-created Texas Electric Securitization Corp. would use the money raised from the fees for bonds to help pay the companies’ debts, including costs for ancillary services, a financial product that helps ensure power is continuously generated. The aid would only be allowed for the debt that would otherwise be defaulted.

Hard to say how much this will increase the average monthly electric bill, but I’m sure someone will study that. Having a bunch of bankruptcies would be bad for a variety of reasons, so this is what we’re doing, but let’s take a moment to review the bidding on our deregulated electricity market. Massive statewide blackouts (and water failures) during the freeze because there was no requirement to weatherize the systems (even though we had experienced similar, though smaller scale, blackouts before, in recent memory), which led to a huge financial crisis in the industry that is now requiring a state bailout as well as a large state investment in weatherization, because otherwise that was never going to happen. All this, and we have higher consumer prices than other states. Is this a great system or what?

Meanwhile, in other ERCOT news:

During February’s deadly winter storm, Gov. Greg Abbott and many state lawmakers quickly criticized the Electric Reliability Council of Texas because several members of its large governing board reside outside Texas.

Many of the out-of-state board members are experts in the electricity field, but resigned following criticism of the agency’s oversight of the state’s main power grid during the storm that left millions of Texans without electricity for days in freezing temperatures.

State lawmakers are now trying to change the way ERCOT is governed by requiring members to live in Texas and giving more board seats to political appointees — changes that experts say may do little to improve the power grid.

One former board member who resigned after the storm, Peter Cramton, criticized legislation for politicizing the grid operator’s board.

“These people would be political types without electricity expertise,” he told The Texas Tribune.

The Texas House has already approved House Bill 10, which would remove independent outside voices on the ERCOT board and replace them with five political appointees. The governor would appoint three of those people, while the lieutenant governor and speaker of the House would each appoint one. None of the appointees would be required to be electricity experts. The only requirement is that appointees live in Texas.

Senate Bill 2, which has cleared the upper chamber, would give the governor five ERCOT board member appointments.

[…]

The political appointees replace what are now called “unaffiliated members,” who mostly served as outside expert voices. The other board members currently represent regions across the state that make up the ERCOT grid, as well as non-voting members such as the chair of the Public Utility Commission, which oversees ERCOT.

Some power grid experts have said in legislative testimony, at industry events and in interviews that they don’t see how giving more power to the political class — and making minor tweaks like requiring all board members reside in Texas — could improve the grid operator.

“From the consumer standpoint, we really depend on those unaffiliated directors to make decisions that are in customers’ interest and in the interest of the overall health of the ERCOT market,” Katie Coleman, who represents Texas Industrial Energy Consumers, said at a recent industry conference.

Seriously, WTF are we even doing here?

It was worse in Harris County during the freeze

Very interesting.

Harris County residents were far more likely to have lost electricity and water during February’s winter storm and blackout crisis than residents of other Texas counties, a survey by the University of Houston’s Hobby School of Public Affairs found.

The findings may help explain why Harris County residents account for a third of the almost 200 deaths so far attributed to the storm, while only accounting for 16 percent of the state’s population. Most froze to death in their homes or while exposed to the elements, succumbed to carbon monoxide poisoning or died when medical devices failed without electricity.

“During the week of the winter storm, Harris County residents were significantly more likely than other Texans to lose electrical power, lose internet service, lose access to drinkable water, be without running water, lose cell phone service, have food spoil, suffer economic damages, and experience difficulty finding a plumber,” the survey authors wrote.

Ninety-one percent of Harris County survey respondents said they lost power during the blackouts, compared to 64 percent of respondents from the other 212 counties on the state’s main power grid. Asked if they had lost water, 65 percent of Harris County residents said yes, compared to 44 percent of those in other counties. Thirty-eight percent of local respondents said they suffered burst pipes.

On average, Harris County respondents were without electricity for 49 total hours and 39 consecutive hours, confirming that the outages were not rotating as the grid operator, ERCOT, had hoped. CenterPoint Energy, the Houston area’s electricity distributor, said during the crisis it could not rotate blackouts because the drop in available power to distribute was so severe.

Perhaps unsurprisingly, 72 percent of Harris County respondents said they somewhat or strongly disagreed that the power outages were distributed in an equitable manner.

[…]

The survey also measured how Harris County respondents rated the performance of government officials and entities during the storm. President Joe Biden and County Judge Lina Hidalgo scored the highest, with more than 45 percent of respondents somewhat or strongly approving of their handling of the crisis.

Gov. Greg Abbott and state government as a whole were rated poorly, with about 21 percent somewhat or strongly approving of their performance. ERCOT polled the worst, with 78 percent of respondents somewhat or strongly disapproving of the power grid operator’s performance.

The survey found broad support among Harris County residents who identify as Republicans, Democrats and independents for a series of reforms. More than 70 percent of these respondents said they supported requiring the electric grid and natural gas pipelines to fully winterize and giving the Public Utilities Commission greater oversight over the electric grid.

Fifty-three percent of respondents, however, said they were unwilling to have higher utility bills to ensure the grid is better-prepared for severe weather.

The landing page for this poll is here. The data for Harris County is here and for the state as a whole is here. The poll was done via a webpanel, with a sample of 1500 adults in total, and an oversample of 513 adults in Harris County. Note that as before, the partisan makeup of the sample is more Democratic than it would be if we were talking about registered voters. In Harris County, it was 38% Democrats, 36% Independents, and 18% Republicans, and statewide it was 32% Dem, 30% Independent, and 25% Republican. I sent an inquiry about that, and was told that among those who reported voting in the 2020 election, Trump won by a 51-47 margin, not far off from the actual 52-46 spread. In other words, if there’s a Democratic skew it’s among the non-voters.

I say all that up front because there were approval ratings in the polls, at least for how the freeze was handled. For the statewide sample:

Governor Greg Abbott: Strong approve 15%, somewhat approve 13%, neutral 15%, somewhat disapprove 10%, strong disapprove 38%
Your County Judge: Strong approve 14%, somewhat approve 11%, neutral 26%, somewhat disapprove 7%, strong disapprove 16%
Your Mayor: Strong approve 14%, somewhat approve 14%, neutral 27%, somewhat disapprove 8%, strong disapprove 17%
President Joe Biden: Strong approve 21%, somewhat approve 11%, neutral 21%, somewhat disapprove 5%, strong disapprove 32%

And for Harris County:

Governor Greg Abbott: Strong approve 12%, somewhat approve 9%, neutral 17%, somewhat disapprove 9%, strong disapprove 47%
County Judge Lina Hidalgo: Strong approve 35%, somewhat approve 13%, neutral 19%, somewhat disapprove 6%, strong disapprove 18%
Your Mayor: Strong approve 27%, somewhat approve 19%, neutral 19%, somewhat disapprove 6%, strong disapprove 19%
President Joe Biden: Strong approve 36%, somewhat approve 13%, neutral 20%, somewhat disapprove 5%, strong disapprove 19%

Again, bear in mind the partisan breakdown of the sample. There’s a lot more to the polls, and a separate set of questions about lifting COVID-19 restrictions that I’ll write about separately, so go check it out.

Chron analysis puts freeze death total at 194

Sobering, to say the least.

The deaths of nearly 200 people are linked to February’s cold snap and blackouts, a Houston Chronicle analysis reveals, making the natural disaster one of the worst in Texas this past century.

The tally, which is nearly double the state’s official count, comes from an investigation of reports from medical examiners, justices of the peace and Department of State Health Services, as well as lawsuits and news stories.

The state count, which is preliminary, has yet to incorporate some deaths already flagged by medical examiners as storm-related.

The 194 deaths identified by the Chronicle so far include at least 100 cases of hypothermia that killed people in their homes or while exposed to the elements, at least 16 carbon monoxide poisonings of residents who used dangerous methods for heat and at least 22 Texans who died when medical devices failed without power or who were unable to seek live-saving care because of the weather.

Sixteen deaths were from other causes, such as fires or vehicle wrecks, while the remaining 40 were attributed by authorities to the storm without listing a specific cause.

“This is almost double the death toll from Hurricane Harvey,” said State Rep. Rafael Anchia, D-Dallas. “There was no live footage of flooded homes, or roofs being blown off, or tidal surges, but this was more deadly and devastating than anything we’ve experienced in modern state history.”

The toll is almost certain to grow in coming weeks as death investigators in the state’s most populous counties clear a backlog in cases from the cold snap. The Travis County medical examiner alone is investigating more than 80 deaths between Feb. 13 and Feb. 20.

The deaths come from 57 counties in all regions of the state but are disproportionately centered on the Houston area, which at times during the crisis accounted for nearly half of all power outages. Of the known ages, races and ethnicities of the victims, 74 percent were people of color. Half were at least 65. Six were children.

The previous count released by the state was 111, but as noted then and in this story that is sure to go up. There’s no central database for this kind of thing, only 14 counties have a medical examiner’s office, and not all county data is currently available. As with COVID deaths, there are likely some cases where one could argue whether the freeze was the actual cause of death or whether it was just proximate. The main point here is that the freeze was responsible for a lot of misery around the state and by any count more deaths than there were from Hurricane Harvey. It remains to be seen if the Legislature and the Public Utility Commission (which currently has no members) are taking adequate action to prevent this from ever happening again.

The infrastructure bill and the power grid

Of interest.

President Joe Biden’s $2 trillion infrastructure plan could help rebuild Texas highways and ports and push broadband into rural parts of the state, where up to 31 percent of residents do not have access to high-speed internet.

It could help Texas weatherize the grid in a way that wouldn’t stick consumers with the bill as well as guard the Gulf Coast against hurricanes and address racial disparities that have made Latino and Black communities particularly vulnerable to natural disasters.

The infrastructure pitch is the president’s latest attempt to offer up money for things Republican leaders in Texas have been looking for funds to cover, as well as some that state lawmakers have been reluctant to take on.

But the president’s latest proposal also comes with a heavy emphasis on clean energy that some Texas Republicans have framed as an attack on the state’s oil industry, and Biden is calling for corporate tax increases to foot the bill.

[…]

Though Biden outlined the package in Pittsburgh on Wednesday, the pitch may as well have been aimed at Texas.

“As we saw in Texas and elsewhere, our electrical power grids are vulnerable to storms, catastrophic failures and security lapses to tragic results,” Biden said, pledging to “put hundreds of thousands of people to work” rebuilding a “modern, resilient and fully clean grid” and capping hundreds of thousands of dry oil and gas wells, many in Texas.

[…]

The infrastructure bill could also help pick up the tab — if not cover completely — the cost of weatherizing Texas’ power grid, which state lawmakers are so far requiring the industry to cover. Consumer advocates have warned those costs would then be passed down to consumers.

So far the White House has not detailed specific projects, but the plan calls for $100 billion to be spent on energy projects, including upgrades to electrical grids. [Michael Webber, an energy resources professor at the University of Texas at Austin] said given that Texas accounts for about 8 percent of the U.S. population and 10 percent of the GDP, a proportionate slice of that $100 billion would cover the estimated $8 to $10 billion price of weatherizing the grid.

But the president’s push for green energy in the infrastructure package already has state leaders pushing back.

The Texas Legislature is working to counteract tax credits for clean energy Biden would extend as his proposal aims for 100 percent carbon-free electricity by 2035. The state Senate passed a bill this week adding fees on solar and wind electricity production in the state in hopes of boosting fossil fuels.

More far-reaching proposals for clean energy in the plan could have major implications for the Texas oil and gas industry. Republicans are calling it Biden’s latest attack on fossil fuels after moves to end the Keystone XL pipeline and pause drilling on federal lands.

As Biden is calling for pouring $174 billion to juice the electric vehicle market and another $213 billion to retrofit 2 million homes and businesses to increase energy efficiency, he is also proposing spending $16 billion plugging oil wells — an endeavor Webber said could be a multi-billion dollar industry in Texas offering plenty of jobs to oil workers worried about Biden’s clean energy bent.

“This is a multi-hundred million to multi-billion dollar economic opportunity,” he said. “If you’re looking to be angry, you could be angry about what this might do to oil and gas — but I would say actually it’s a pretty good opportunity.”

As a reminder, right now this is the Infrastructure Plan That Is Not Yet A Bill, though the House is now working on what it will look like as legislation. The Texas Senate has passed its bill to overhaul the electricity market, which has some good things in it as well as that dumb and petty attack on renewable energy, which last I checked was still big business in Texas. The fact that Biden’s plan includes ending tax subsidies to fossil fuel companies will I’m sure have heads exploding all over the state. I have to assume that federal funds to cover the cost of weatherizing the grid would be scooped up and used, though never acknowledged and certainly not voted for by Republicans.

It’s hard to know how any of this will play out, given that we don’t have a piece of legislation yet, and we very much have to take into account the whole filibuster obstacle in the Senate. I have read elsewhere that the legislative calendar is such that this would all need to be done by late summer, so to say the least it’s a race. As a reminder, if you want to know more about the plan, see Slate and the Trib.

Freeze-related lawsuit filed against CenterPoint

Of interest.

Several more Houston families of victims of the February freeze are among the latest to sue CenterPoint Energy for allowing vulnerable people to languish without power during what were supposed to be brief blackouts.

Travis Flowers, 66, and Qazi Momin, 83, relied on oxygen tanks to survive, according to separate lawsuits — both of which were filed Friday by lawyer Tony Buzbee.

In the case of Flowers, the power at the Army veteran’s Houston home went out Feb. 15 and his wife, Brenda Flowers, swapped out his powerless tank for a portable device. By then, the home was too cold for the backup tank to work, according to the lawsuit. Flowers’ oxygen levels dropped dangerously low and he died at a hospital.

Two days later, when the power went out at another residence, Momin’s caretaker found him breathing rapidly. His oxygen tank was without power, the suit states. She “tried to make him comfortable using pillows to support him” but hours later, he stopped breathing.

Her phone was dead “so she went to her car to charge it so that she could call for help.”

Details surrounding Flowers’ and Momin’s deaths could not be found in medical examiner records.

The wrongful death litigation, among several filed after the winter storm that knocked out power for millions of Texans, both accuse CenterPoint — a private utilities company — of negligence for cutting power to Flowers’ and Momin’s homes as the temperature lingered below freezing.

[…]

Although CenterPoint was acting on instructions from the Electric Reliability Council of Texas to lighten the power load, the regional energy company, Buzbee contends, was able to choose which circuits to sever power to and for how long. ERCOT, who is named in this case but not a defendant, manages most of Texas’ electrical grid through a deregulated market.

The lawsuit claims the energy company failed to disclose the possibility of a failing power grid or prepare Houstonians to keep warm or leave the area. The nine-page document points to a tweet that CenterPoint officials wrote the morning of Flowers’ death that states “controlled, rotating electric outages” would begin but that they would be temporary.

“At (the) same time that CenterPoint and others were telling the public that the blackouts were temporary and rolling, public officials were urging people to stay home and off the roads,” the suit reads.

Transparency and “balanced rotations of power” in Houston neighborhoods, Buzbee argues, could have saved their lives.

There have been other freeze-related lawsuits filed, against the now-bankrupt Griddy and against Entergy, with the latter also from the busy office of Tony Buzbee. There’s also litigation against ERCOT, though it remains an open question as to whether or not ERCOT can be sued in this fashion. I don’t have any particular insight about this action other than to say that however much you might think CenterPoint is at fault, the greater responsibility in my opinion lies with the Legislature and the state’s regulatory structure. None of that can really be sued (except maybe ERCOT), so here we are.

On a related note:

Last month’s disastrous and deadly winter storm impacted most Texans served by the state’s main power grid, with almost 70% of those people losing power in subfreezing temperatures and almost half experiencing a water outage, according to a new report from the University of Houston.

And although Texans were told to prepare for short-term, rolling power outages ahead of the storm, those who lost electricity ended up going an average of 42 hours without it, the survey found.

As the updated death toll from the storm reached 111 deaths last week, the severity of its full force has continued to come into focus. The damage the storm wrecked could make it the costliest disaster in Texas history.

That report is here. I figure we were without power for about 50 hours at our house – about half of Monday, all of Tuesday, and about half of Wednesday. Doesn’t have any direct bearing on the litigation around this, but it’s another reminder of just how bad this was, if for some reason we needed one.

Winter storm death count now at 111

A revision of the numbers. Expect this to happen at least once more.

At least 111 Texans died as a result of last month’s winter storm, according to updated numbers released Thursday by the state Department of State Health Services.

The newly revised number is nearly twice what the department had estimated last week, and will likely continue to grow. Some of Texas’ larger counties, such as Tarrant County, have yet to report any storm-related deaths.

The majority of people died from hypothermia, but health officials also attributed deaths to “motor vehicle accidents, carbon monoxide poisoning, medical equipment failure, exacerbation of chronic illness, lack of home oxygen, falls and fire.”

[…]

Harris County reported 31 storm-related deaths, the largest share in the state. Travis County followed with nine deaths.

Health officials will continue to update their preliminary findings weekly.

According to DSHS, the data is compiled from forms that certify deaths are related to a disaster, notification from death certifiers and analyses of death certificates from state epidemiologists.

See here for the background. As a reminder, there were 103 deaths attributed to Hurricane Harvey, so the February freeze event (I’m sorry, I’ve not adopted the new paradigm of naming winter storms, so I have not and probably will not again refer to this as “Winter Storm Uri”) has now surpassed that total. And will likely put some more distance between them when the next month’s data is available.

There has been a bit of legislative action on this front.

A bill that would overhaul Texas’ energy industry — including mandating weatherization for natural gas and power generators — was approved by a Texas Senate committee on Thursday.

The sweeping Senate Bill 3, sponsored by Republican state Sen. Charles Schwertner of Georgetown, includes a number of reforms that have been floating around the state Capitol since last month’s deadly winter storm left millions without electricity during freezing temperatures. While the Texas House earlier this month approved a package of similar, standalone bills, Thursday’s vote represents the first substantive action on the issue by the upper chamber.

“This is an important issue to get right for the people of Texas, for the future of Texas, for the economy of Texas,” Schwertner said.

Chief among the bill’s provisions is a requirement that all power generators, transmission lines, natural gas facilities and pipelines make upgrades for extreme weather conditions — a process known as weatherization. Many power generators and gas companies were ill-suited for the freezing temperatures in February, which led gas pipelines to freeze and power transmission to falter.

The measure would delegate rulemaking authority to the Texas Railroad Commission, which regulates the oil and gas industries, and the Texas Public Utility Commission, which regulates the electric and telecommunication industries. If a gas or energy company fails to comply with the weatherization rules, it would face a fine up to $1 million for each offense. The bill does not address funding to pay for the required upgrades.

A Texas House committee earlier this month passed a similar weatherization bill. But the requirements only apply to electric companies, not natural gas companies. In public testimony before the Legislature, Railroad Commission Chair Christi Craddick largely dodged talks of winterizing the natural gas supply chain.

There’s more, so read the rest. I don’t know enough to offer a general critique of these bills, but I would certainly argue that natural gas companies should have the same weatherization requirements. All of these bills are sure to change as they move from one chamber to the other, so we’ll need to see where they wind up.

SCoTX punts on ERCOT lawsuit question

Wimpy.

The Texas Supreme Court punted Friday on a question dogging millions of Texans affected by last month’s catastrophic power failure: Can ERCOT, the state’s grid manager, be sued?

The state’s highest court ruled 5-4 that it won’t decide — at least not now — on closely-watched case between Dallas electricity generator Panda Power and the Electric Reliability Council of Texas. The $2.2 billion case filed by Panda Power in 2016 raised the question whether ERCOT is a governmental agency that has sovereign immunity protecting them from lawsuits. ERCOT, a private, nonprofit corporation overseen by the Texas Legislature and the Public Utility Commission, is the only grid manager in the country that has received such protection.

Five justices led by Justice Jeff Boyd said the Texas Constitution prohibits them from ruling on the case after the trial court issued a final judgment dismissing the case. Based on a finding of sovereign immunity by an appeals court, the Supreme Court narrowly ruled that the dismissal by the lower court made the case moot and that it no longer had the authority to rule in the case.

“Because the trial court’s interlocutory order merged into the final judgment and no longer exists, we cannot grant the relief the parties seek,” the majority opinion written by Boyd stated. “As a result, any decision we might render would constitute an impermissible advisory opinion, and these consolidated causes are moot.”

Four dissenting justices led by Chief Justice Nathan Hecht, argued they should rule on the case because the public has an interest whether ERCOT can be sued in the aftermath of last month’s storm. Several lawsuits have been filed against the state grid manager, including over the deaths of an 11-year-old boy and a 95-year-old man, who were both found dead in their freezing Houston-area homes.

“The answer to the immunity issue in this case has become perhaps more important to the public than even to the parties,” the minority opinion, written by Hecht stated. “The parties want to know. The public wants to know. The court refuses to answer.”

The ruling by the high court has widespread implications in the wake of last month’s deadly and devastating blackouts, which contributed to more than 50 deaths and billions of dollars of property damage.

David Coale, an appellate partner with Dallas-based law firm Lynn Pinker Hurst & Schwegmann, said the Supreme Court could still decide on ERCOT’s immunity as appeals from the Panda Power case come up through the legal system. In the meantime, ERCOT’s immunity — upheld by a Texas appeals court in 2018 — remains intact, but the state grid manage faces an onslaught of legal cases without any guidance from the Supreme Court.

“The court may have punted, but it didn’t walk away,” Coale said. “It acknowledged that another appeal involving the same parties is on its way up to them, and it can revisit these issues then.”

See here and here for some background. I guess I can understand the “let’s do this all in the correct order” idea, but as the story notes the question about whether ERCOT has sovereign immunity or not is very pertinent right now. Maybe if the ultimate decision is that ERCOT cannot be sued it would be nice to let all those folks who are now suing them know, so they won’t waste a bunch of time and money pursuing their cases. I’m not a lawyer, what do I know? You can find all the relevant opinions and concurrences and dissents here if you need a little light reading for the weekend.

UPDATE: Forgot to mention that Harris, Fort Bend, and Travis Counties submitted amicus briefs urging SCOTUS to find in favor of ERCOT not having sovereign immunity. This Bloomberg article, which is behind their paywall but which you might be able to see if you haven’t exceeded your monthly allowance, details those filings.

Our rinky-dink critical infrastructure

Good Lord.

On Valentine’s Day, the major utility that supplies electricity to West Texas readied for a severe winter storm. Hired contractors prepared to fix power lines, managers started up the storm emergency center, and operators reviewed the list of facilities that should — no matter what — keep power during an emergency: 35 of them on Oncor’s list were natural gas facilities that deliver fuel to power plants.

As Sunday turned to Monday, Allen Nye, the CEO of Oncor, one of the state’s largest transmission and delivery utilities, thought his team was ready.

But the situation rapidly deteriorated as the storm bore down on Texas. At 1:20 a.m., the Electric Reliability Council of Texas, which manages the state’s power grid, ordered the first cut of power to bring demand down to match an extremely low power supply as the frigid temperatures caused power plants to rapidly trip offline.

Oncor’s team, along with other utilities, began a plan to roll outages at 15- and 30-minute intervals. But just before 2 a.m., ERCOT ordered them to take even more power offline — then kept ordering more reductions. By late Monday morning, ERCOT had ordered 20,000 megawatts of power offline; Oncor’s share was 8,000 megawatts, or enough to power 1.6 million homes.

Rolling the outages “quickly became impossible,” Nye said. “We sat there praying that electrons showed up.”

With millions of Texans without power, Nye got an urgent request from DeAnn Walker, then chair of the Public Utility Commission: She needed Oncor to flip the switch back on to certain natural gas facilities that couldn’t deliver fuel to power plants without electricity. A PUC spokesperson said Walker was “ceaselessly” on the phone, calling Nye about dozens of natural gas facilities that weren’t on Oncor’s “critical” list.

That meant that Oncor, which delivers power to the Permian Basin — the state’s most productive oil and natural gas basin — had unwittingly shut off some of the state’s power supply when it followed orders to begin the outages.

The desperate scramble to power up natural gas facilities again exposed a major structural flaw in Texas’ electric grid: Oncor and other utilities didn’t have good lists of what they should consider critical infrastructure, including natural gas facilities — simply because natural gas companies failed to fill out a form or didn’t know the form existed, company executives, regulators and experts said.

[…]

“In my opinion, if we had kept the supply [of natural gas] on, we would’ve had minor disruptions,” James Cisarik, chairman of the Texas Energy Reliability Council, told legislators. “[Texas] has all the assets, we just have to make sure we evaluate every link in that chain to keep it going.”

The failures were years in the making: There is no requirement for natural gas and other companies that operate crucial parts of the grid to register as “critical.” And a trend toward electrifying key components of the state’s natural gas infrastructure in recent decades, plus the lack of a single agency to oversee all parts of the electric delivery system, created what Kenneth Medlock, a fellow in energy and resource economics at the Rice University’s Baker Institute, called a “single point of failure” — one that state regulators were blind to.

“That’s a failure of regulation,” said Medlock, who is also the senior director of the Center for Energy Studies at Rice. “That’s all it is. It’s relatively simple.”

That’s one way to put it. “Infuriating” and “inexcusable” also come to mind, along with a bunch of swear words. As someone once said, there’s a lot more to gain by avoiding stupid mistakes than there is by coming up with genius solutions. This is the sort of thing that the Legislature should be focused on. If this kind of simple, no cost fix is not implemented, you know who to blame. The Chron has more.

Griddy files for bankruptcy

Live by market disruption

Griddy Energy, a California-based retail power company, filed for bankruptcy on Monday citing financial woes brought on by the power crisis in February.

Griddy’s business model exposes consumers to the wholesale market, which in normal times could mean savings, but when the grid crashed many customers had exorbitantly high bills in the thousands.

The power company’s Chief Executive Officer Michael Fallquist said the bankruptcy plan would provide financial relief to it’s customers, and also took aim at The Electric Reliability Council of Texas, or ERCOT, the state’s grid manager.

“Prior to Winter Storm Uri, Griddy was a thriving business with more than 29,000 customers who saved more than $17 million dollars since 2017. The actions of ERCOT destroyed our business and caused financial harm to our customers,” Fallquist saod. “Our bankruptcy plan, if confirmed, provides relief for our former customers who were unable to pay their electricity bills resulting from the unprecedented prices.”

Two weeks ago, ERCOT barred Griddy from participating in the state’s wholesale power markets, effectively shutting down the company.

See here and here for some background. This doesn’t mean Griddy is going away, just that it’s working through some tough times. It also apparently means that may of their customers may be off the hook for the ridiculous prices they had been charged.

Griddy’s approximately 29,000 customers were charged $29 million for energy during the winter storm, according to court documents. The wholesale electricity retailer, which has recently been forced out of the market, charged a $9.99 monthly fee and, in turn, passed along wholesale prices to customers.

When wholesale energy bill prices skyrocketed during the storm as temperatures plunged below freezing, Griddy customers were subject to the same costs with no buffer. Some reported bills over $15,000. Most Texas customers were shielded from the rising prices because they pay a fixed rate for electricity, although they could see prices increase in the near future to offset the added costs incurred by the power companies.

Houston-based Griddy’s Chapter 11 filing outlines a plan to wipe out its former customers’ debt during the company’s liquidation if approved in bankruptcy court.

“Our bankruptcy plan, if confirmed, provides relief for our former customers who were unable to pay their electricity bills resulting from the unprecedented prices,” Griddy CEO Michael Fallquist said in a statement on its website. He emphasized Griddy did not profit from increased prices and only made money off of the fixed monthly membership fees.

However, thousands of dollars have already been automatically drained from customer’s bank accounts and charged to their credit cards.

Texas Attorney General Ken Paxton said in a statement that Griddy and his office are “engaged in ongoing good faith negotiations to attempt to address additional relief for those Griddy customers who have already paid their storm-related energy bills.”

Not perfect, but it’s a start. Here’s the longer version of the Chron story for more.