Will Texans see sky-high electric bills this summer? Grid operator sends dire warning
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Will Texans see sky-high electric bills this summer? Grid operator sends dire warning | T... Page 1 of 4
Í MENU
Will Texans see sky-high electric bills
this summer? Grid operator sends dire
warning
A day after the state's main electric grid operator warned that a variety
of factors including record high demand could lead to pricier and dicier
electric service, experts added a grain of salt to the predictions.
BY KIAH COLLIER MARCH 2, 2018 UPDATED: 2:31 PM
¬ â
I Andrea Parker / Cory Maluski
https://www.texastribune.org/2018/03/02/will-texans-see-sky-high-electric-bills-summer/ 3/2/2018
Will Texans see sky-high electric bills this summer? Grid operator sends dire warning | T... Page 2 of 4
For years, the state’s main power grid operator has warned of high
electricity prices and even power outages during the hot summer months.
It’s rarely been as bad as feared. But experts say the latest startling forecast
from the Electric Reliability Council of Texas looks to be more accurate,
although they downplayed the potential impact to residential customers.
ERCOT said on Thursday it expects to see record-breaking prices and
demand for power this summer that could require it to take emergency
measures to maintain supply — and force customers to curb power usage. It
identified a variety of factors expected to put a strain on the grid on top of
record-breaking demand, including delayed power supply projects and the
closure of three major coal-fired power plants.
That will result in “tight operating reserves” — numbers released Thursday
show ERCOT expects to have have barely enough power to meet demand
from June through September, which will result in sky-high power prices at
certain times.
The Texas Tribune thanks its sponsors. Become one.
“The ERCOT market has experienced a series of new peak demand records
over the last few years as Texas’ economy continues to grow at record
pace,” ERCOT President and CEO Bill Magness said in a statement. “We
expect high peak demand will continue this summer.”
A hot, dry summer — which is expected — and any unplanned outages of
power plants would compound the problem, said Rice University associate
professor Dan Cohan.
“I sure hope we can dodge a bullet this time,” he said. “But the odds are
stacked against us, and not many Texans see this bullet coming. This
summer could be the wake-up call that drives major efforts for
conservation and new build-outs of natural gas, solar, and storage to
prepare for the next one.”
https://www.texastribune.org/2018/03/02/will-texans-see-sky-high-electric-bills-summer/ 3/2/2018Will Texans see sky-high electric bills this summer? Grid operator sends dire warning | T... Page 3 of 4
But, he said, “Markets are tough to predict, especially since weather will
play a big role, so we don't know exactly what will happen.”
Bill Peacock, vice president of research at the Texas Public Policy
Foundation, a conservative think tank, said the market is working exactly
like it's supposed to, but it's been unfairly manipulated by renewable
energy subsidies that he blames for reliability problems and the premature
closure of coal plants — a notion many dispute.
It's important that ERCOT and the state's Public Utility Commission allow
prices to go high this summer, Peacock said. That's because it will spur
investment in "peaking" power plants — those that run when there is high
demand.
The Texas Tribune thanks its sponsors. Become one.
"We have more than enough baseline to take care of us," he said.
Michael Webber, deputy director of the Energy Institute at the University
of Texas at Austin, said ERCOT has been predicting some version of
summertime doom and gloom for at least the past decade so it’s easy to
shrug off this warning. While there is certainly cause for concern, he said a
variety of factors will have to coalesce to result in extreme impacts like
widespread power outages.
And he said residential customers, who mostly pay fixed prices, aren’t
likely to see a big change in their bills. Price spikes are more likely to affect
large-scale commercial power purchasers and utility companies who sell
power, he said. That would eventually trickle down to consumers, but it’s
hard to say when and by how much. [Texas' electric prices are also
generally lower than other states to begin with, he said.]
Webber said the risk of vulnerable populations losing power during a time
when air conditioning is all but a requirement is always a concern and "we
need to watch that.”
"But I think generally we'll be fine," he said.
https://www.texastribune.org/2018/03/02/will-texans-see-sky-high-electric-bills-summer/ 3/2/2018Will Texans see sky-high electric bills this summer? Grid operator sends dire warning | T... Page 4 of 4
Disclosure: The Texas Public Policy Foundation, Rice University and the University of
Texas at Austin have been financial supporters of The Texas Tribune, a nonprofit,
nonpartisan news organization that is funded in part by donations from members,
foundations and corporate sponsors. Financial supporters play no role in the
Tribune's journalism. Find a complete list of them here.
Read related Tribune coverage:
• Icy Texas weather leads to new winter record for state power usage
• Perry pursuing policy on coal, nuclear power at odds with Texas record
• Texas Lawmaker Warns of Outer Space Death Pulse
GET THE BRIEF
Never miss a moment in Texas politics with our daily newsletter.
Your email SUBSCRIBE
Start the conversation
SUPPORT ACCOUNTABILITY JOURNALISM DURING AMPLIFY! LEARN MORE.
https://www.texastribune.org/2018/03/02/will-texans-see-sky-high-electric-bills-summer/ 3/2/2018You can also read
