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Why Texas Republicans Fear the Green New Deal

  
Via:  Bob Nelson  •  3 years ago  •  3 comments

By:   Naomi Klein - The New York Times

Why Texas Republicans Fear the Green New Deal



Small government is no match for a crisis born of the state's twin addictions to market fixes and fossil fuels

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original

The Republican Party has long been a puppet for the ultra-rich, bleeding the federal treasury for their own benefit.

Now a not -historic storm has shown us that Texas Republicans are bleeding their citizens locally, as well.

Gosh what a surprise...



S E E D E D   C O N T E N T



merlin_183846870_436a42a4-c2af-483c-89fa-e76387c2cc5d-articleLarge.jpg?quality=75&auto=webp&disable=upscale People waited in line to enter a grocery store in Austin, Texas, on Tuesday amid widespread power outages.
Tamir Kalifa for The New York Times

Since the power went out in Texas , the state's most prominent Republicans have tried to pin the blame for the crisis on, of all things, a sweeping progressive mobilization to fight poverty, inequality and climate change.

"This shows how the Green New Deal would be a deadly deal," Gov. Greg Abbott of Texas said Wednesday on Fox News. Pointing to snow-covered solar panels, Rick Perry, a former governor who was later an energy secretary for the Trump administration, posted on Twitter a quotation from a Forbes article by Robert Bryce, who wrote that "if we humans want to keep surviving frigid winters, we are going to have to keep burning natural gas — and lots of it — for decades to come."

The claims are outlandish. The Green New Deal is, among other things, a plan to tightly regulate and upgrade the energy system so the United States gets 100 percent of its electricity from renewables in a decade. Texas, of course, still gets the majority of its energy from gas and coal; much of that industry's poorly insulated infrastructure froze up last week when it collided with wild weather that prompted a huge surge in demand. (Despite the claims of many conservatives, renewable energy was not to blame.) It was the very sort of freakish weather system now increasingly common, thanks to the unearthing and burning of fossil fuels like coal and gas. While the link between global warming and rare cold fronts like the one that just slammed Texas remains an area of active research, Katharine Hayhoe, a climate scientist at Texas Tech University, says the increasing frequency of such events should be "a wake up call."

But weather alone did not cause this crisis. Texans are living through the collapse of a 40-year experiment in free-market fundamentalism, one that has also stood in the way of effective climate action. Fortunately, there's a way out — and that's precisely what Republican politicians in the state most fear.

An Energy-Market Free-for-All

A fateful series of decisions were made in the late-'90s, when the now-defunct, scandal-plagued energy company Enron led a successful push to radically deregulate Texas's electricity sector. As a result, decisions about the generation and distribution of power were stripped from regulators and, in effect, handed over to private energy companies. Unsurprisingly, these companies prioritized short-term profit over costly investments to maintain the grid and build in redundancies for extreme weather.

Today, Texans are at the mercy of regulation-allergic politicians who failed to require that energy companies plan for shocks or weatherize their infrastructure (renewables and fossil fuel alike). In a recent appearance on NBC's "Today" show, Austin's mayor, Steve Adler, summed it up: "We have a deregulated power system in the state and it does not work, because it does not build in the incentives in order to protect people."

merlin_183862005_5e2a89ee-222c-465b-90a6-66f9c29c0b47-articleLarge.jpg?quality=75&auto=webp&disable=upscale
A neighborhood without power in Austin, Texas, on Tuesday.
Tamir Kalifa for The New York Times

This energy-market free-for-all means that as the snow finally melts, many Texans are discovering that they owe their private electricity providers thousands of dollars — a consequence of leaving pricing to the whims of the market. The $200,000 energy bills some people received, the photos of which went viral online, were, it seems, a mistake. But some bills approaching $10,000 are the result of simple supply and demand in a radically underregulated market. "The last thing an awful lot of people need right now is a higher electric bill," said Matt Schulz, chief industry analyst with LendingTree. "And that's unfortunately something a lot of people will get stuck with." This is bad news for those customers, but great news for shale gas companies like Comstock Resources Inc. On an earnings call last Wednesday, its chief financial officer said, "This week is like hitting the jackpot with some of these incredible prices."

Put bluntly, Texas is about as far from having a Green New Deal as any place on earth. So why have Republicans seized it as their scapegoat of choice?

A Shock to the System

Blame right-wing panic. For decades, the Republicans have met every disaster with a credo I have described as "the shock doctrine." When disaster strikes, people are frightened and dislocated. They focus on handling the emergencies of daily life, like boiling snow for drinking water. They have less time to engage in politics and a reduced capacity to protect their rights. They often regress, deferring to strong and decisive leaders — think of New York's ill-fated love affairs with then-Mayor Rudy Giuliani after the 9/11 attacks and Gov. Andrew Cuomo in the early months of the Covid-19 pandemic.

Large-scale shocks — natural disasters, economic collapse, terrorist attacks — become ideal moments to smuggle in unpopular free-market policies that tend to enrich elites at everyone else's expense. Crucially, the shock doctrine is not about solving underlying drivers of crises: It's about exploiting those crises to ram through your wish list even if it exacerbates the crisis.

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To explain this phenomenon, I often quote a guru of the free market revolution, the late economist Milton Friedman. In 1982, he wrote about what he saw as the mission of right-wing economists like him: "Only a crisis — actual or perceived — produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes politically inevitable."

The Traugott family outside their powerless apartment in Austin, Texas, last week.
Tamir Kalifa for The New York Times

Republicans have effectively deployed this tactic even after crises like the 2008 market collapse, created by financial deregulation and made deadlier by decades of austerity. Democrats have, largely, been willing partners. This seems counterintuitive, but it all comes back to Friedman's credo: The change doesn't depend on the reasons for the crisis, only on who has the ideas "lying around" — a kind of intellectual disaster preparedness. And for a long time, it was only the right, bolstered by a network of free-market think tanks linked to both major parties, that had its ideas at the ready.

When Hurricane Katrina broke through New Orleans's long-neglected levees in 2005, there was, briefly, some hope that the catastrophe might serve as a kind of wake-up call. Witnessing the abandonment of thousands of residents on their rooftops and in the Superdome, small-government fetishists suddenly lost their religion. "When a city is sinking into the sea and rioting runs rampant, government probably should saddle-up," Jonah Goldberg, a prominent right-wing commentator, wrote at the time. In environmental circles, there was also discussion that the disaster could spur climate action. Some dared to predict that the collapsed levees would be for the small-government, free-market legacy of Reaganism what the fall of the Berlin Wall was for Soviet Communism.

None of it happened. Instead, New Orleans became a laboratory for the shock doctrine. Public schools were shut down en masse, replaced by charter schools. Public housing was demolished, and costly townhouses sprang up, preventing thousands of the city's poorest residents, the majority of them Black, from ever returning. The reconstruction of the city became a feeding ground for private contractors. Republicans used the cover of crisis to call for expanded oil and gas exploration and new refinery capacity, much as Mr. Perry is doing right now in Texas with his calls for doubling down on gas.

Many tried to stop them. Teachers' unions, despite having their members scattered throughout the country, did their best to fight the privatizations. Residents of public housing and their supporters faced tear gas to try to stop the demolition of their homes. But there were no readily available, alternate ideas lying around for how New Orleans could be rebuilt to make it both greener and fairer for all of its residents.

Even if there had been, there was no political muscle to turn such ideas into reality. Though the environmental justice movement has deep roots in Louisiana's "cancer alley," the climate justice movement was only just emerging at the time Katrina struck. There was no Sunrise Movement, the youth-led organization that occupied Nancy Pelosi's office after the 2018 midterms to demand "good jobs, and a livable planet." There was no "squad," the ad hoc alliance of congressional progressives whose most visible member, Alexandria Ocasio-Cortez, sent shock waves through Washington by joining the Sunrisers in their occupation. There had not yet been two Bernie Sanders presidential campaigns to show Americans how popular these ideas really are. And there was certainly no national movement for a Green New Deal.

Lying in Ruin

The difference between then and now goes a very long way toward explaining why Mr. Abbott is railing against a policy plan that, as of now, exists primarily on paper. In a crisis, ideas matter — he knows this. He also knows that the Green New Deal, which promises to create millions of union jobs building out shock-resilient green energy infrastructure, transit and affordable housing, is extremely appealing. This is especially true now, as so many Texans suffer under the overlapping crises of unemployment, houselessness, racial injustice, crumbling public services and extreme weather.

All that Texas's Republicans have to offer, in contrast, is continued oil and gas dependence — driving more climate disruption — alongside more privatizations and cuts to public services to pay for their state's mess, which we can expect them to push in the weeks and months ahead.

Will it work? Unlike when the Republican Party began deploying the shock doctrine, its free-market playbook is no longer novel. It has been tried and repeatedly tested: by the pandemic, by spiraling hunger and joblessness, by extreme weather. And it is failing all of those tests — so much so that even the most ardent cheerleaders of deregulation now point to Texas's energy grid as a cautionary tale. A recent article in the Wall Street Journal, for instance, called the deregulation of Texas's energy system "a fundamental flaw."

In short, Republican ideas are no longer lying around — they are lying in ruin. Small government is simply no match for this era of big, interlocking problems. Moreover, for the first time since Margaret Thatcher, Britain's former prime minister, declared that "there is no alternative" to leaving our fates to the market, progressives are ready with a host of problem-solving plans. The big question is whether the Democrats who hold power in Washington will have the courage to implement them.

The horrors currently unfolding in Texas expose both the reality of the climate crisis and the extreme vulnerability of fossil fuel infrastructure in the face of that crisis. So of course the Green New Deal finds itself under fierce attack. Because for the first time in a long time, Republicans face the very thing that they claim to revere but never actually wanted: competition — in the battle of ideas.



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Bob Nelson
Professor Guide
1  seeder  Bob Nelson    3 years ago
Blame right-wing panic. For decades, the Republicans have met every disaster with a credo I have described as "the shock doctrine." When disaster strikes, people are frightened and dislocated. They focus on handling the emergencies of daily life, like boiling snow for drinking water. They have less time to engage in politics and a reduced capacity to protect their rights. They often regress, deferring to strong and decisive leaders — think of New York's ill-fated love affairs with then-Mayor Rudy Giuliani after the 9/11 attacks and Gov. Andrew Cuomo in the early months of the Covid-19 pandemic.

Large-scale shocks — natural disasters, economic collapse, terrorist attacks — become ideal moments to smuggle in unpopular free-market policies that tend to enrich elites at everyone else's expense. Crucially, the shock doctrine is not about solving underlying drivers of crises: It's about exploiting those crises to ram through your wish list even if it exacerbates the crisis.
 
 
 
Bob Nelson
Professor Guide
2  seeder  Bob Nelson    3 years ago

Here's a parallel article from a different source (ProPublica):

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original Savannah and Sam Peyton, who were without power for days last week,
huddle in multiple layers under a sleeping bag at their home in Austin, Texas, on Thursday night, Feb. 18, 2021.
Tamir Kalifa/The New York Times/Redux

‘Power Companies Get Exactly What They Want’: How Texas Repeatedly Failed to Protect Its Power Grid Against Extreme Weather
Texas regulators and lawmakers knew about the grid’s vulnerabilities for years, but time and again they furthered the interests of large electricity providers

In January 2014, power plants owned by Texas’ largest electricity producer buckled under frigid temperatures. Its generators failed more than a dozen times in 12 hours, helping to bring the state’s electric grid to the brink of collapse.

The incident was the second in three years for North Texas-based Luminant, whose equipment malfunctions during a more severe storm in 2011 resulted in a $750,000 fine from state energy regulators for failing to deliver promised power to the grid.

In the earlier cold snap, the grid was pushed to the limit and rolling blackouts swept the state, spurring an angry Legislature   to order a study   of   what went wrong.

Experts hired by the Texas Public Utility Commission, which oversees the state’s electric and water utilities,   concluded   that power-generating companies like Luminant had failed to understand the “critical failure points” that could cause equipment to stop working in cold weather.

In May 2014, the PUC sought changes that would require energy companies to identify and address all potential failure points, including any effects of “weather design limits.”

Luminant argued against   the proposal .

In comments to the commission, the company said the requirement was unnecessary and “may or may not identify the ‘weak links’ in protections against extreme temperatures.”

“Each weather event [is] dynamic,” company representatives told regulators. “Any engineering analysis that attempted to identify a specific weather design limit would be rendered meaningless.”

By the end of the process, the PUC agreed to soften the proposed changes. Instead of identifying all possible failure points in their equipment, power companies would need only to address any that were previously known.

The change, which experts say has left Texas power plants more susceptible to the kind of extreme and deadly weather events that bore down on the state last week, is one in a series of cascading failures to shield the state’s electric grid from winter storms, ProPublica and The Texas Tribune found.

Lawmakers and regulators, including the PUC and the industry-friendly Texas Railroad Commission, which regulates the oil and gas industry, have repeatedly ignored, dismissed or watered down efforts to address weaknesses in the state’s sprawling electric grid, which is   isolated   from the rest of the country.

About 46,000 megawatts of power — enough to provide electricity to 9 million homes on a high-demand day — were taken off the grid last week due to power-generating failures stemming from winter storms that battered the state for nearly seven consecutive days. Dozens of   deaths , including that of an 11-year-old boy, have been tied to the weather. At the height of the crisis, more than   4.5 million customers   across the state were without power.

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Snow surrounds an Austin Energy station in Austin, Texas, on Thursday, Feb. 18, 2021.
Many Texas residents are still without power and working water.

Sergio Flores for The Texas Tribune

As millions of Texans endured days without power and water, experts and news organizations   pointed to unheeded warnings in a federal report   that examined the 2011 winter storm and offered recommendations for preventing future problems. The report by the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation concluded, among other things, that power companies and natural gas producers hadn’t properly readied their facilities for cold weather, including failing to install extra insulation, wind breaks and heaters.

Another federal   report   released three years later made similar recommendations with few results. Lawmakers also failed to pass measures over the past two decades that would have required the operator of the state’s main power grid to ensure adequate reserves to shield against blackouts, provided better representation for residential and small commercial consumers on the board that oversees that agency and allowed the state’s top emergency-planning agency to make sure power plants were adequately “hardened” against disaster.

Experts and consumer advocates say the challenge to the 2014 proposal by Luminant and other companies, which hasn’t been previously reported, is an example of the industry’s outsize influence over the regulatory bodies that oversee them.

“Too often, power companies get exactly what they want out of the PUC,” said Tim Morstad, associate director of AARP Texas. “Even well-intentioned PUC staff are outgunned by armies of power company lawyers and their experts. The sad truth is that if power companies object to something, in this case simply providing information about the durability of certain equipment, they are extremely likely to get what they want.”

Luminant representatives declined to answer questions about the company’s opposition to the weatherization proposal. PUC officials also declined to comment.

Michael Webber, an energy expert and mechanical engineering professor at the University of Texas at Austin, said the original proposal could have helped in identifying trouble spots within the state’s power plants.

“Good engineering requires detailed understanding of the performance limits of each individual component that goes into a system,” Webber said. “Even if 99.9% of the equipment is properly rated for the operational temperatures, that one part out of 1,000 can bring the whole thing down."

Luminant defended its performance during last week’s deep freeze, saying it produced about 25% to 30% of the power on the grid Monday and Tuesday, compared with its typical market share of about 18%.

In a public statement, officials said the company executed a “significant winter preparedness strategy to keep the electricity flowing during this unprecedented, extended weather event.” They declined to disclose whether any of the company’s generating units failed during last week’s winter storms.

State officials are again promising reforms. Lawmakers have   called on officials   with the PUC and the Electric Reliability Council of Texas, which operates the power grid that spans most of the state, to testify at hearings later this week. Gov.   Greg Abbott   has called on lawmakers   to mandate the winterization   of generators and power plants, and Texas Attorney General Ken Paxton said he was   launching an investigation   into ERCOT and almost a dozen power companies, including Luminant. Separately, the PUC announced its own investigation into ERCOT.

original
The Blanco Vista neighborhood of San Marcos was blanketed with several inches of snow Feb. 15
after a massive winter weather system engulfed Texas, causing widespread power outages across the state.

Jordan Vonderhaar for The Texas Tribune

Texas is the only state in the continental U.S. that operates its own electric grid, making it difficult for other regions to send excess power in times of crisis, especially when they are facing their own shortages, as they were last week. All other states in the Lower 48, as well as   peripheral areas of Texas , are connected to one of two grids that span the eastern and western halves of the country.

Because Texas operates its own grid, the state isn’t subject to federal oversight by FERC, which can investigate power outages but can’t mandate reforms. Many energy experts say the very nature of the state’s deregulated electric market is perhaps most to blame for last week’s power crisis.

In Texas, a handful of mega-utilities controlled the distribution and pricing of the power they produced until two decades ago, when the Legislature shifted to a system where companies would compete for customers on the open market. Lawmakers said the change would result in lower power bills and better service, a promise that some experts and   advocates say   hasn’t been kept.

But under this system, power companies aren’t required to produce enough electricity to get the state through crises like the one last week. In fact, they are incentivized to ramp up generation only when dwindling power supplies have driven up prices.

Other states with deregulated power markets, including California, have made reforms and added additional safeguards after experiencing similar catastrophes.

“The fault on this one is at the feet of the Legislature and the regulators for their failure to protect the people rather than profits, the utility companies, rather than investing millions of dollars in weatherization that had been recommended in review after review of these kinds of incidents,” said Tom “Smitty” Smith, a longtime Texas consumer advocate and environmental activist. “They have chosen not to do that because it would be too expensive for the utilities and ultimately to the consumers.”

“We’ll Be Opportunistic”

Three years after the 2011 storms, the Texas electric grid faced another major cold weather test when a polar vortex swept across the state. Freezing temperatures helped to knock out nearly 50 generating units at Texas power plants in the first week of 2014, bringing ERCOT perilously close to ordering rotating outages.

The event quickly faded from public attention because it was a near-miss that didn’t actually leave people without electricity or heat. But because the state had come so close to blackouts, the North American Electric Reliability Corporation, which has some authority to regulate power companies in the country, launched an investigation. The probe found similar problems to those that dogged the state after the 2011 storms, primarily equipment that failed to stand up to the freezing temperatures.

Despite the equipment failures that brought the electric grid to the brink of disaster, the polar vortex was a financial windfall for power-generation companies. In the months that followed the storm, some of the companies stressed to investors the financial benefits of the two days of cold weather and accompanying high energy prices.

“This business benefited significantly from increased basis and storage spreads during the polar vortex earlier this year,” Joe McGoldrick, an executive with Houston-based CenterPoint Energy, said in a November 2014 earnings call. “To the extent that we get another polar vortex or whatever, absolutely, we’ll be opportunistic and take advantage of those conditions.”

A CenterPoint spokeswoman said McGoldrick was the head of the company’s gas marketing division but has since left the company. She said that division was sold last year and had no role in responding to last week’s storms.

“The remarks made in 2014 do not reflect the core values of CenterPoint Energy,” Natalie Hedde, communications director, said.

Texas has relied on the principle that higher prices will spur greater power generation when the state needs it most, a structure that helps explain the persistence of blackouts, said Ed Hirs, a University of Houston energy expert.

In extreme weather events like last week’s freeze, prices per megawatt hour jumped from an average of around $35 to ERCOT’s maximum of $9,000.

Hirs said it’s in the power generators’ interest to “push ERCOT into a tight situation where price goes up dramatically.”

“They are giving generators incentive to withdraw service,” he added. “How else do you get the price to go up?”

Texans have already been hit with sky-high bills since last week’s event, with some   climbing as high as $16,000 , according to The New York Times. At an emergency meeting Sunday, the three-member PUC   ordered   electric companies to suspend disconnections for nonpayment and delay sending invoices or bill estimates.

Power companies weren’t the only ones that saw the 2014 event more as a success story than a sign of weakness.

ERCOT concluded that operators “handled a difficult situation well” and took “prompt and decisive actions” that had prevented systemwide blackouts. In the “lessons learned” section of its final report, the agency promoted the continuation of its winterization site visits, which are not mandatory.

Winterization efforts were paying dividends in the form of fewer generating units falling victim to cold weather, the report stated.

Federal regulators agreed. During a meeting of the National Association of Regulatory Utility Commissioners in February 2014, a month after the storm, a top-ranking official from NERC stated that the response showed “industry is learning [and] using the resources and tools available to improve their preparations and operations of the grid during a significant weather event.”

But NERC’s investigation exposed problems that would bring Texas to a crisis point last week.

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A car moving Thursday through a West Austin neighborhood that was without power.
Jordan Vonderhaar for The Texas Tribune

In the 2014 report, NERC methodically laid out how power-generating equipment failed during the cold snap, detailing 62 examples that included frozen circulating water that caused a supply loss and moisture in the air causing valves to freeze. In all, those cold-related failures were responsible for the vast majority of lost power during the event, the agency found.

The incident also highlighted the need to improve winter performance of natural gas pipelines, which NERC found hampered the ability of gas-fired power plants to generate electricity. The agency declined to comment, saying it doesn’t discuss investigations.

Natural gas and power generation are highly dependent on each other: Natural gas processing requires electricity, which may be produced in turn by burning natural gas.

Citing preliminary figures from ERCOT that show natural-gas-fired power plants performed worse than those fueled by other types of energy during this year’s power crisis, energy experts say producers and distributors of that fossil fuel played a major role in the catastrophe.

Natural gas producers and pipeline companies in Texas are regulated by the Railroad Commission.

R.J. DeSilva, a spokesperson for the agency, declined to say whether it requires natural gas producers and pipeline companies to weatherize wellheads or pipelines. He noted that poor road conditions made it impossible for crews from natural gas companies to inspect wells and said some producers reported “the inability to produce gas because they did not have power.”

Because so many homes are heated with natural gas, fossil fuel plays a much more central role in the winter than it does in the hot summer months.

“When all this began, millions of Texans wrapped their pipes to keep them from freezing, and the Railroad Commission didn’t order — has never ordered — the gas companies, the gas producers and gas pipeline companies … to wrap their pipes to protect them from freezing,” said Smith, the consumer advocate.

original
This map is interactive with details of each county, in the OA.

Failed Legislation

After days of scrambling to address the myriad crises that pummeled his city last week, former longtime state Rep. Sylvester Turner — now mayor of Houston, the state’s largest city — had a message for his former colleagues.

“You need to dust off my bill, and you need to refile it,” the Democrat said during a press conference Friday, referring to legislation he filed in 2011 that would have required the PUC to ensure ERCOT maintained adequate reserve power to prevent blackouts. “Because it’s not about just holding hearings.”

The state’s deregulated market is to blame for the crisis, according to some experts who say the catastrophe shows that the system ultimately prizes profits over people. But some of the architects of the system are doubling down.

In a   blog post published last week   on the website of U.S. House Minority Leader Kevin McCarthy, former Texas Gov. Rick Perry suggested that the current disaster was worth it if it keeps rates low and federal regulators from requiring changes to the system.

“Texans would be without electricity for longer than three days to keep the federal government out of their business,” said Perry, who was governor from 2000-15 and presided over the early days of energy deregulation in Texas. “Try not to let whatever the crisis of the day is take your eye off of having a resilient grid that keeps America safe personally, economically, and strategically.”

Perry, who returned to his job on the board of Dallas-based pipeline giant Energy Transfer LP after serving as energy secretary in the Trump administration, received at least $141,000 in campaign contributions from Luminant’s former parent company, TXU Corp., between 2002 and 2009, when he was governor.

On Saturday, Turner warned about the soaring residential utility bills that Texans would be getting in the coming weeks. In 2012, when Turner was still a state representative, he wrote a letter to the then-chairman of the House State Affairs Committee, raising concerns about PUC rule changes that increased the price caps companies could charge for power to $9,000 per megawatt hour.

Those price caps remain the same today.

This time, Turner called on lawmakers to pursue substantive reforms that don’t simply “scapegoat” ERCOT, referring to the increasing calls for an investigation into the council, including by Abbott. “You must include the Public Utility Commission in these reforms because they provide direct oversight over ERCOT, and all of those commissioners are appointed by the governor,” Turner said.

In 2013, Turner attempted, unsuccessfully, to pass a measure that would have replaced the governor’s appointees on the PUC with an elected commissioner. The same year, he tried to salvage a measure that would have increased the administrative penalty for electric industry participants that violate state law or PUC rules.

The Texas Sunset Advisory Commission, which audits state agencies every 12 years to determine how they can better function or if they should be abolished, recommended in 2013 that the PUC exercise additional oversight of ERCOT, including a review and approval of annual budgets and annual review of “PUC-approved performance measures tracking ERCOT’s operations.”

One of the recommendations called on the PUC to increase the administrative penalty to $100,000 a day per violation, stating that the $25,000 daily penalty “may not be sufficient for violations that affect grid reliability, which can cause serious grid failures, such as blackouts.”

Lawmakers passed a bill during that year’s legislative session that adopted many of those recommendations, but the change in penalties was left out. An amendment by Turner to restore the higher fee in the bill failed.

Another former Democratic lawmaker who now leads a major Texas city similarly tried and failed to pass legislation that would bring greater accountability to the state.

In 2015, Dallas Mayor Eric Johnson, then a state representative, authored   a bill   that would have required state agencies, including the PUC, to plan and budget for severe weather using state climatologist data.

“It would have forced state agencies to prepare for an event like what just happened and to account for that in their agency plans,” Johnson said during a Thursday press conference addressing the crisis. “It was quite unfortunate, because we can’t say that it would have prevented this situation but certainly may have.”

Then, two years ago, facilities owned or controlled by utilities regulated by the PUC were exempted from   legislation   that requires the Texas Division of Emergency Management to “identify methods for hardening utility facilities and critical infrastructure in order to maintain essential services during disasters.”

The bill’s author, Republican state Rep.   Dennis Paul , declined to comment. State Sen.   Eddie Lucio   Jr., who co-sponsored the measure, said he did not know why the PUC was exempted.

original Jacob Duran warmed his hands over a grill Thursday after his apartment lost power due to the severe winter storm that hit Texas.
Miguel Gutierrez Jr./The Texas Tribune

“Demanding Answers”

For the past two decades, consumer groups have fought without success for a larger role in how the state manages its power grid. Giving residents a stronger presence on the ERCOT board would have forced the agency to take the lessons of extreme winter storms in 2011 and 2014 more seriously, said Randall Chapman, a ratepayer attorney and longtime consumer advocate.

“It would have changed things entirely,” Chapman said. “Residential consumers are the ones who have been through outages before. They are the ones with the broken water pipes, the ones freezing in their homes. They would be demanding answers.”

Chapman said the groups were stymied when the Legislature agreed to reserve only a   single seat on the ERCOT board   for a representative of residential consumers. In comparison, eight seats, including alternates, are filled by representatives of energy retailers, power generators and investor-owned utility companies.

“Residential consumers need a stronger voice over at ERCOT,” Morstad of AARP Texas said. “Decisions are made every week that affect the health and safety of millions of Texans. You need a strong voice there to call B.S. when companies aren’t following through on winterizing or other things that are critical to reliability of the electric system.”

In 2011, Texas Comptroller   Glenn Hegar   co-authored   a bill   while serving in the state legislature that would have increased the size of the ERCOT board and allowed for more consumer representation. It didn’t pass.

Hegar said the failures displayed in the last week once again bring the significance of representation to the forefront.

“As a result of this extremely unfortunate event where so many people were out of power and now have damage to their homes and their businesses, there needs to be a broader range of representation on the board and to bring those voices as we move forward in trying to decide what we want our electric grid to be,” Hegar said.

 
 
 
Bob Nelson
Professor Guide
2.1  seeder  Bob Nelson  replied to  Bob Nelson @2    3 years ago
Texas has relied on the principle that higher prices will spur greater power generation when the state needs it most, a structure that helps explain the persistence of blackouts, said Ed Hirs, a University of Houston energy expert.

In extreme weather events like last week’s freeze, prices per megawatt hour jumped from an average of around $35 to ERCOT’s maximum of $9,000.

Hirs said it’s in the power generators’ interest to “push ERCOT into a tight situation where price goes up dramatically.”

“They are giving generators incentive to withdraw service,” he added. “How else do you get the price to go up?”
 
 

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