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.

[edsheppa]

What are the other historical reasons?

So Texas politicians to subsidize power consumption.

[edsheppa]

Wow, that didn't come out right. How about "so Texas politicians can subsidize power consumption."

[new cruelty]

So Texas politicians to subsidize power consumption.

Is there a word missing in your sentence?

[Delbert]

Welllllll.....The lights at nite are burning bright,
(clap, clap , clap) Deep in the heart of Texas
We've got our A/C when it's a hundred and three
(clap, clap , clap) Deep in the heart of Texas!!!

[new cruelty]

ROTFLOL. Thanks, Delbert.

[taxcontrol]

This sounds just like what California did. Did you forget your sarcasm tag?

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Your kidding right?
'Cause Califonia did not implement any of these.

[MeekOneGOP]

Excellent article ! Thanks for the ping and the post !

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.

[deport]

Texas, thy name is hypocrisy.

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Naw willie,,,,, it's success. By not having AC ties to the other grids the Texas Utilities aren't under the juridiction of FERC...... Local control or are you in favor of national control?

[Aggie1]

Watch out or we'll cut off your gas supply too and let you freeze in the dark!

[John O]

Eight, Break power transmission away from the utility companies by requiring utilities to seel off grid assets.

First let me apologize for the laziness of my previous post. Your items 1 through 6 were ok as was 10. 7 through 9 sounds exactly like what california just recently did, separate the power production from the transmission. Truly a sensless waste especially since anyones power can come over the lines.

We need to totally deregulate, not mess with the system in simply different ways.

[q_an_a]

You may have a lot of water, but that has not stopped Texas from building more dams and providing water for the next 50 years. Water rationing is going to be a world wide thing, so I'll take the heat, which does not require a shovel, to the cold. I'll take no income tax to the RAt system developed and supported by both parties.

We are sorry you are gone, but unless I'm wrong Long Island, NY had a small riot over day workers from south of the border just a few months ago.

[Aggie1]

I got a chance to tour one of the coal mining $ electricity producing operations some year ago near Fairfield. Quite impressive. The earth moving equipment is really something to see, such as a dragline crane with a 70 cubic yard bucket! It's all strip mined. After they go through an area it's covered back up, contoured back to original lay, sodded, trees planted, fences put back, etc. No one would ever know it's been mined. I know I've walked the fields.

Don't tell anyone about the secret plan in Texas to secede and make the rest of the country learn to stand on their own two legs.

[taxcontrol]

Ok lets take this one at a time

7) 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

8) 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.


Neither 7 or 8 were implemented by California. Yes there was some selling off of assets but not to the structure I propose. The needs to be a profit motive for making power (sell of power plants) and for the transmission of power (less money here but still needs to be profit motivated)



9)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.

What California did that caused problems with it model was to restrict what utilities would charge the customer. Had charges been past on by utilities who were acting as bill collectors, then there would not have been a problem. Other than perhaps people complaining about high electric bils (and the resulting conservation).

[jonalvy44]

LOL

Thx--The heat was truly the deciding factor...too much, too long. I was in Austin, so I traded liberalism for liberalism. haha Seriously, though. I've found my neighbors here to be much more friendlier than in Tx, believe it or not. I actually dig the snow. pun intended.

[Aggie1]

You got it right. (I'm temporarily in CA for a few years). Bottom line is this - California tried to manipulate the market and it backfired. When you do that you're playing with fire. It maight work in your favor for a short time but eventually it catches up. 49 other states had no problem. (anyone remember the Hunt brothers?)

[Tall_Texan]

"Freeze A Yankee" (circa 1973)

Freeze a Yankee.
Drive 75 and freeze 'em alive.
Freeze a Yankee.
Let your thermostats rise and give 'em a surprise.

Governor Briscoe promised us.
That if a any dang Yankee raised a fuss.
He'd turn off the gas, shut off the oil.
And let 'em all freeze and boil.

Freeze a Yankee.
Allelujah!
Save those confederate credit cards,
The South's gonna rise again!

[_Jim]

How updated is Texas' grid?

HORRIBLY outdated.

We need at least one new roll of bailing-wire pronto to keep going ...

[_Jim]

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

You realize, of course, that SOME of the really big problems have occurred WHEN that local generation has 'tripped' off-line and there was not enough 'spinning reserve' IN an area!

The solutions you propose are rather simplistic in view of a number of 'realities' that actually exist and would DOUBLE the cost for little return in actual improvement.

[taxcontrol]

And do you realize how little some areas produce?????

Most of the NE imports from Canada, California sucks from the North West and Mid West.

Granted 70% is is low but for the highest demand markets it would be a significant improvement.

Perhaps I should have phrased this:

Fourth, require local grids produce no less than 70% of their demand locally.

[thackney]

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

Where would the real estate and capital come from such a project? This statement is the same as saying we can eliminate all traffic congestion in Houston by doubling all the roads.

High Voltage Transmission lines are expensive. Duplicate capacity (building twice what you need) is very expensive. Look at the houses near the substation that feeds your home. Whose houses do you intend to demolish to create this back-up that Texas has never needed?

Your other suggestions are not much beter. Thanks for playing.