Why Texas Has Its Own Power Grid: the Electric Reliability Council of Texas

Slate ^ | August 18, 2003 | Brendan I. Koerner

[new cruelty]

Blackout postmortems have noted that America's electricity system consists of just three regions—the Eastern Interconnection, the Western Interconnection, and the Texas Interconnection. Why does the Lone Star State have its own power grid?

Partly because of a historical desire for self-sufficiency and partly because of that famous "Don't Mess With Texas!" attitude. The majority of the state's residents live within the region regulated by the Electric Reliability Council of Texas, an "island" that generates and supplies all its own electricity—unlike, say, New York City or Detroit, whose residents found out the hard way that lots of their power comes from Canada. (A small sliver of Western Texas gets its juice from the Western Interconnection, while a few customers in the north and the east are hooked into the Eastern Interconnection. Still, ERCOT handles 85 percent of the state's electricity needs.)

The local utilities that comprise ERCOT have pledged not to sell their power to interstate customers. As a result, the interconnection is exempt from most regulation by the Federal Energy Regulatory Commission, the Beltway agency that governs the transmission of electricity from state to state—say, by mandating transmission standards, or requiring that prices be listed in public forums. ERCOT's resistance to federal regulation plays well in President Bush's native land, where meddling from Washington, D.C., is generally abhorred.

The isolation of the Texas grid also has roots in World War II, when ERCOT's precursor, the Texas Interconnected System, was created. At the time, the state was home to several factories vital to the war effort. The state's electricity planners—anxious to keep the assembly lines running and concerned about the reliability of the power supply—felt that a Texas-only system would be more dependable than one that harnessed electricity from distant states. Texas' isolated arrangement worked largely because of the state's abundance of homegrown natural resources, particularly coal (Texas currently ranks fifth in annual production) and gas (first, with 24 percent of the nation's proven reserves).

There has been relatively little agitation to integrate ERCOT into the national systems, primarily because Texas doesn't really need the help. The state uses more electricity than any other, 44 percent more than runner-up California. Much of this is used by industrial customers such as petrochemical plants and oil refineries. Despite Texas' massive thirst for electricity, ERCOT has been able to provide cheap power with few service hiccups. In fact, Texas electricity is cheaper, per kilowatt hour, than the national average.

[truthandlife]

How updated is Texas' grid?

[CindyDawg]

Is this what Ca. was riled about last year? I didn't understand their complaint but it had something to do with us not sharing at the price they set, I think.

[mtbopfuyn]

Why? Because we ARE the Lone Star state.

[new cruelty]

Well, thats easy. The answer is four.

NO wait its Blue!

... er... here is some info about ERCOT.

A Statement From Tom Noel, Chief Executive Officer, ERCOT

The ERCOT grid remains stable despite reports of difficulties experienced by other power grids within the U.S. and Canada. Because we are not interconnected with either the Eastern or Western interconnects, what happens in those systems does not affect the reliability of the ERCOT grid. ERCOT recently reached a peak usage of 60,157 megawatts on August 8, 2003, but is currently operating well below that level. No difficulties were experienced within ERCOT at a much higher level of energy usage than is currently the case. ERCOT presently has no additional information to share with respect to the causes of the disturbances being reported.

[new cruelty]

From their website-

http://www.ercot.com

FOR MORE INFORMATION, CONTACT:
HEATHER TINDALL
ERCOT DIRECTOR OF COMMUNICATIONS
512-225-7023 (W)
OR 512-750-5456 (CELL).

[conservatism_IS_compassion]

bump.

[tx_eggman]

California crybabies didn't want capacity built in their backyard. Like the grasshopper, when crunch time came they wanted Texans to give them the fruit of our foresight and planning ... too freakin bad !!!

[ladtx]

Texas. It's a whole other country. (Seems like I've heard that somewhere before.)

[Redbob]

This article leaves out an enormous amount about the historical reasons that Texas in't connected to the Eastern or Western "grids."

Like the story about the crew sent from one power company up to another company's plant on the Oklahoma border, a plant that wanted to be able to sell power to either state and had a cable connection to the Oklahoma grid.

Somehow in the middle of the night, the cable was cut; the president of the first company had sections of the cable cast in clear plastic and made into paperweights for his friends in Austin!

[Redbob]

BTW, I'd be surprised if the reason Texas uses so much more electricity than California wasn't that Texas has so much more industry than California - electricity is used for much more than just air conditioners, a fact you'd never pick out from the article posted.

[taxcontrol]

As a security 'xspert - I have worked with utilities. I have always beleived that the grids need to have several things occur to create a reliable network.

First, break the larger grids into smaller grids.

Second, duplicate the transmission grids so that each substation attaches to two local grids

Third, interconnect the local grids to larger regional grids. Create no less than 9 regional grids.

Fourth, require local grids produce 70% of their demand locally

Fifth, require power producers to connect to a minimum of three grids - both of the two local and the regional grid

Sixth, require that each of the 9 regional grids connect to at least 2 other regional grids.

Seventh, Break power production away from power delivery by requiring utilities to sell off power production facilities. Utility companies would act a bill collectors and distribute funds to power producers

Eight, Break power transmission away from the utility companies by requiring utilities to seel off grid assets. Utilities would own from the meter to the substation but would not own the lines supplying the substation. Grid companies would own the substation supply equipment (no less than two per substation) back to the power plants and grid cross connects. Power stations would only own up to the substation located at the power plant.

Ninth, require utilities to purchase power from the local grid spot market or from the local grid futures market. The grid companies would enforce the contracts.

Tenth, require 24 hr armed guards at all power plants and grid interconnect locations.

My SWAG at the cost impact would be about a 20% increase in the average national electric bill. Some locations like California and NY State would see a higher jump due to an increase in power production facilities. Other states like Texas, Washington, NV would see only slight increases due to the additional grid configuration.

Just my .02

[new cruelty]

This article leaves out an enormous amount about the historical reasons that Texas in't connected to the Eastern or Western "grids."

What are the other historical reasons?

[new cruelty]

I'd be surprised if the reason Texas uses so much more electricity than California wasn't that Texas has so much more industry than California - electricity is used for much more than just air conditioners,...

I don't understand what you are saying here. Are you saying you would be surprised if the reason Texas uses more power is that is has more industry? Or you would be surprised if the reason is that Texas has more air conditioners? Or are you saying industry = air conditioners? Sorry, I may just be reading your comments incorrectly.

[MD_Willington_1976]

How updated is Texas' grid?

Newer than the ones back East, remember they started out in the East and worked their way West. FDR had a big push in the 30's to get power to the entire country...they built a lattice across the country from East to West.

This is a pretty good website to check out:

http://americanhistory.si.edu/csr/powering/backpast.htm

http://americanhistory.si.edu/csr/powering/basics/basics1.htm

[ExSoldier]

"Well, thats easy. The answer is four. NO wait its Blue!"

Monty Python and the Holy Grail BUMP!

[Richard Kimball]

We're Texans, and we didn't want the commie rat b*stids in the Federal Govt to be able to tell us how to use electricity. Back when the Constitution meant something, the Feds had no was of telling the states how to handle their electricity other than through the interstate commerce clause. Therefore, when the national grid went up, all the states had to sign off that they wouldn't cut electricity to other states (which explains the collapsing domino effect during power outtages). Also, remember a few years ago when the line was "when people in California turn on a light switch, people in Oregon pay the bill?" California prohibited suppliers from charging what it cost to produce electricity, so they had to up the rates in surrounding states, and could not refuse to supply California.

Some commie rat tried to sneak up and create a single line connection to Oklahoma, which would have put Texas under federal regs, but I believe the gov. threatened to kill the man and sent Texas Rangers out to clear up the mess. This is all off of memory from years ago, but that's the gist of it. Texas isn't under Federal regs because we have our own system, and we have our own system because that's the way we wanted it.

[Willie Green]

Partly because of a historical desire for self-sufficiency and partly because of that famous "Don't Mess With Texas!" attitude.
The local utilities that comprise ERCOT have pledged not to sell their power to interstate customers.

An admirable, but ironic background for a state that has foisted NAFTA dependency and Enron Energy trading on the rest of the nation.
Texas, thy name is hypocrisy.

[new cruelty]

Thanks for your insightful POV, Richard.

[lelio]

Somehow in the middle of the night, the cable was cut; the president of the first company had sections of the cable cast in clear plastic and made into paperweights for his friends in Austin!

There's a lesson to be learned here in regards to "free" trade and how it can bite you. If energy trading isn't good for Texas, why is trading with China good for the US?