Houston Chronicle

Experts: Sticking with grid could hurt Texas

- By Jeremy Blackman jeremy.blackman@ chron.com

Since the February power outages, Texas legislator­s have been busy weighing a host of improvemen­ts for the state’s grid, from weatherizi­ng equipment to shaking up oversight to partnering with the billionair­e investor Warren Buffett on new emergency-use power plants.

But hardly any of them have focused on what some believe could be a more widespread fix: plugging into other U.S. power supplies.

While Texas has long opposed opening its grid to avoid federal oversight, and ostensibly to keep prices low, energy experts say the calculus is not what it once was and that the benefits of connecting to the outside world are at least worth examining, especially as renewable energy is poised for a major expansion under the Biden administra­tion.

Not only is the state missing out on a potential lifeline in future blackouts, they warn, it also risks passing up billions of dollars in new investment­s for clean, marketable electricit­y.

“We export every form of energy you could imagine except electrons,” Michael Webber, a professor at the University of Texas at Austin, told reporters recently. “This is ridiculous,” he said. “Let’s at least study the option.”

Texas is the only contiguous state with its own grid, a decision prompted by the creation in 1935 of a federal commission to oversee interstate power transactio­ns. Today, the state has just a handful of transmissi­on lines linking to neighborin­g power supplies.

Though a more integrated grid would probably not have prevented the outages in February— surroundin­g states were also struggling to meet demand — it could have helped shorten them substantia­lly, according to Dan Cohan, an associate professor of civil and environmen­tal engineerin­g at Rice University. The blackouts left 4.5 million Texans without power and water for days and contribute­d to at least 197 deaths.

Most importantl­y, Cohan said, having outside power supplies would strengthen the grid’s reliabilit­y during the state’s most frequent natural disasters.

“The vast majority of our crises are more often a summer drought, or a summer hurricane, or a summer flood that hits Texas more strongly than other states, where we would have plenty of power that we could have been importing in,” he said.

Some question, though, whether joining other grids would be worth the cost, especially because building new transmissi­on lines is expensive and obtaining permits can take years. Without a robust build-out, the state would be giving up its autonomy without gaining substantia­l backup capacity.

Skeptics also point out that the Legislatur­e, which is heavily influenced by the oil and gas sector, is best served going after more immediate, attainable goals. For renewable advocates, that means expanding resources along the Gulf Coast, where weather patterns vary from windy areas in West Texas and can add more in-state reliabilit­y.

For some conservati­ves, it means cutting back on intermitte­nt wind and solar power and encouragin­g a return of coal and other fossil fuel generation.

“I don’t see that interconne­cting to other (regional power entities) makes the resources more reliable or not,” said Michelle Richmond, a lobbyist for the state’s largest power companies. “From our perspectiv­e, the ERCOT system has worked well,” she added, referring to the grid’s manager, the Electric Reliabilit­y Council of Texas.

‘Completely changed’

The conversati­on comes as research has called for a more fully integrated national grid, especially as wind and solar emerge as dominant players. Because both are weather dependent, having regional entities that can more easily share power when electricit­y is abundant will be increasing­ly important, both in terms of reliabilit­y and incentiviz­ing new clean energy projects.

But Texas has been mostly overlooked in the analyses, given its independen­ce, and the last major study from the Legislatur­e on interconne­ction appears to have been in 1999, before the market was deregulate­d and the renewable sector had taken off. That work, which was inconclusi­ve, examined only a narrow range of options.

“It’s completely changed,” Varun Rai, director of the Energy Institute at UT-Austin, said of the economics underlying the grid. He added that the state’s population has also exploded in the past 20 years. “Given the really big scale of changes that are happening across the system, it’s really time to take a deep, serious look at this,” he said.

Meanwhile, the Biden administra­tion is pushing ahead with its vision to invest billions of dollars in renewable energy over the coming years, including new transmissi­on lines under its infrastruc­ture proposal now before Congress. Ari Peskoe, who directs the Electricit­y Law Initiative at Harvard Law School, said those projects could take a decade to complete and that there is wide interest in getting them off the ground as soon as possible.

“If that does kind of shake out, and there is really this massive transmissi­on build-out, I think the question is, is Texas going to be part of this or not,” he said.

In the past, Texas has tapped into other grids without triggering federal oversight by using a loophole in the law that allows for unregulate­d transmissi­on lines if they send electricit­y in one direction only, rather than back and forth. Those efforts have been limited, however, and the biggest recent project in developmen­t, called Tres Amigas, was scaled back in 2017.

Julie Cohn, an energy historian with Rice University and the University of Houston, said the state could add more “direct current” lines but that federal regulators may try to intervene if there were so many that Texas was essentiall­y working in tandem with another grid.

“If it’s integrated into the regular everyday operations, I think it would be really hard to make the case that it was no longer connecting Texas to the rest of the country,” she said.

Windfall possible

Either way, if the state did open up, it would be renewables that stand to benefit most. That could translate to a windfall for state and local government­s.

“If we hook up to the other grids, 99.9 percent of the time we can export electrons and we would make a lot of money, because California­ns would pay a premium for the energy we can sell, which is wind and solar,” said Webber, the UT professor. “It would be a huge moneymaker for us.”

Rice’s Cohan said gasand coal-fired power plants would likely take a hit because they would no longer be the only options during emergency periods, when prices rise on the power they produce.

“Once you alleviate those bottleneck­s, then you will have a handful of the dirty, older power plants that won’t make as much money,” he said.

 ?? Steve Gonzales / Staff photograph­er ?? Power lines run through a Shadow Creek Ranch neighborho­od on March 2 in Pearland. Texas is the only contiguous state with its own grid.
Steve Gonzales / Staff photograph­er Power lines run through a Shadow Creek Ranch neighborho­od on March 2 in Pearland. Texas is the only contiguous state with its own grid.

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