Texas is growing. People are moving to the state in droves. Companies want to build their facilities here. Sustaining the growth will require nearly double the electricity the grid deploys today.
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The state’s grid operator can meet the moment, Pablo Vegas, president and CEO of the Electric Reliability Council of Texas, told a panel of lawmakers last week.
So long as politics don’t interfere.
“I think the market as structured today is very well suited to support the growth trajectories that we’re seeing,” Vegas said. “And it’s not just the government support functions. It’s the fact that we have a very light regulatory environment that enables businesses to put their capital to work here with reasonable restrictions and reasonable requirements.”
Vegas’ comments were made as state lawmakers introduced a string of bills that would substantially alter the free trade and marginally regulated business environment that allow power generators and retailers to transact as they see fit, experts told The Texas Tribune.
Among those proposals are Senate Bills 388 and 819, sponsored by state Sens. Phil King, R-Weatherford, and Lois Kolkhorst, R-Brenham, respectively.
King said his bill is needed to bolster what he calls reliable energy generation. Kolhorst has said her bill reigns in the renewable energy industry, calling for the Public Utilities Commission, which regulates electricity and some water and wastewater, to set more stringent rules around renewable energy development that don’t exist today.
Critics say the bills will interfere with a market that runs best when left alone.
Both bills have won approval from the Senate. For both bills to become law, they would need to be approved by the House and not be vetoed by Gov. Greg Abbott, who has called for an “all of the above” approach to energy.
When asked for comment, King’s office directed the Tribune to previous committee hearings discussing his bill. Kolkhorst was not immediately available for comment.
ERCOT did not specify which bills it was most concerned with. But the message to lawmakers was clear: Any significant change to the state’s energy policy would alter the grid’s ability to meet demand.
“I do believe we’ve got a trajectory that’s going to bring important energy onto the grid,” Vegas said, referring to renewable energy and batteries. “And as I’ve always said, we need to balance it with the thermal resources to ensure we can always deliver reliability regardless of what the weather is.”
Lawmakers on the House State Affairs committee, where Vegas made his comments, appeared receptive. One lawmaker said the state should not show favoritism to particular types of energy generators.
“It sounds like we’re going to need every electron brought to bear in our system that we can possibly find, whether it’s from new generation, conservation or energy efficiency, or new distribution,” said state Rep. Rafael Anchía, D-Dallas. “We need all of it.”
