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To: Ponce de Leon County

True, but in a larger system operator allowing power to be wheeled not only within the ISO’s, but between them. While Texas is big, ERCOT doesn’t have the same geographic distribution or generation versus load or the same ability to import in times of supply disruption.

More important IMHO, is the degree of infrastructure hardening that was in place for outlier cold events. Facilities in the north central plains know they will get this kind of cold, regularly - no brainer to design and spend to make sure stuff works in the conditions.

In Texas - not going to happen as often, actually rarely. So the question is return on investment. Where viewed plant by plant, in ERCOT, maybe not, and their pricing structure didn’t create market signals to do so (such as capacity payments for confirmed weatherized generation assets).

Wind reductions were an issue - but a bigger issue was thermal plants not being able to some on line.

A fair response is that investment in winterizing reliable thermal generation was distorted by by renewable energy incentives distorting market pricing making such investment uneconomical. That is likely the underlying cause.

Green new deal, distorting economics, resulting in failure to invest in critical infrastructure.


56 posted on 02/18/2021 6:20:58 PM PST by !1776!
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To: !1776!
A fair response is that investment in winterizing reliable thermal generation was distorted by by renewable energy incentives distorting market pricing making such investment uneconomical.

Say what? Having wind generation be more expensive would have provided incentive for the gas and coal plants to spend money on winterization?

The power generators didn't bother to do that because it would have raised their costs and the regulators didn't require it.

In the current Texas environment what's the incentive for any provider to spend money on winter reliability when they can't charge the customer for it and there's no real downside to them if they go offline for a few days when it gets cold?

78 posted on 02/18/2021 7:12:40 PM PST by semimojo
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