ERCOT given more oversight authority under state bill
A newly passed bill would give the state's power grid operator the authority to shut off electricity to industrial users in an emergency.
Why it matters: Texas has set new records for peak energy demands two of the past three summers.
The state's electricity needs are increasing because of extreme heat and cold, population growth and the booming data center industry.
The latest: Senate Bill 6 was sent to Gov. Greg Abbott's desk Friday.
The measure gives the Electric Reliability Council of Texas, the state's power grid operator, more oversight of large consumers and their transactions with power generators.
The big picture: U.S. electricity demand is projected to rise by 25% by 2030 compared to power needs in 2023.
The surge of electricity usage could increase retail rates by 15% to 40%, per a recent report by consulting firm ICF.
Threat level: ERCOT predicts the state's summer peak energy demand to nearly double by 2031. Demand could reach as high as 144,522 megawatts in a single day in 2031, per the projections.
The grid operator also predicts this summer will set a new peak demand record.
Stunning stat: Energy demand this February set a new all-time winter record. Peak demand on Feb. 20 reached 80,525 megawatts.
Aug. 10, 2023 holds the all-time summer record with a peak energy demand of 85,508 megawatts.
Zoom in: Under the law, ERCOT would have the authority to shut off or curb usage during emergencies.
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'I like not hearing what anyone else is doing.' He worries about the constant roar of giant cooling fans, the bright lights overnight and the air pollution. According to permitting documents, the power plant would be authorized to emit 462 tons per year of ammonia gas, 254 tons per year of nitrogen oxides, 153 tons per year of particulate matter, or soot, and almost 18 tons per year of 'hazardous air pollutants,' a collection of chemicals that are known to cause cancer or other serious health impacts. It would also be authorized to emit 3.9 million tons of greenhouse gases per year, about as much as 72,000 standard passenger vehicles. 'It would be horrendous,' Brown said. 'There will be a constant roaring of gigantic fans.' In a statement, Sandow Lakes Energy denied that the power plant will be loud. 'The sound level at the nearest property line will be similar to a quiet library,' the statement said. Sandow Lakes Energy said the plant will support the local tax base, provide hundreds of temporary construction jobs and dozens of permanent jobs. Sandow also provided several letters signed by area residents who support the plant. 'We recognize the critical need for reliable, efficient and environmentally responsible energy production to support our region's growth and economic development,' wrote Nathan Bland, president of the municipal development district in Rockdale, about 20 miles from the project site. Sandow says the plant will be connected to Texas' public grid, and many supporting letters for the project cited a need for grid reliability. But according to permitting documents, the 1,200 megawatt plant will supply only 80 megawatts to the grid and only temporarily, with the rest going to private customers. 'Electricity will continue to be sold to the public until all of the private customers have completed projects slated to accept the power being generated,' said a permit review by the Texas Commission on Environmental Quality. Sandow has declined to name those customers. However, the plant is part of Sandow's massive, master-planned mixed-use development in rural Lee and Milam counties, where several energy-hungry tenants are already operating, including Riot Platforms, the largest cryptocurrency mine on the continent. The seven-building complex in Rockdale is built to use up to 700 megawatts, and in April it announced the acquisition of a neighboring, 125 megawatt cryptocurrency mine, previously operated by Rhodium. Another mine by Bitmain, also one of the world's largest Bitcoin companies, has 560 megawatts of operating capacity with plans to add 180 more in 2026. In April, residents of Blue gathered at the volunteer fire department building for a public meeting with Texas regulators and Sandow to discuss questions and concerns over the project. Brown, owner of the wildlife sanctuary, spoke into a microphone and noted that the power plant was placed at the far edge of Sandow's 33,000-acre development, 20 miles from the industrial complex in Rockdale but near many homes in Blue. 'You don't want to put it up into the middle of your property where you could deal with the negative consequences,' Brown said, speaking to the developers. 'So it looks to me like you are wanting to make money, in the process of which you want to strew grief in your path and make us bear the environmental costs of your profit.' Disclosure: Conservative Texans for Energy Innovation, Energy Transfer, the Texas Association of Business, the University of Texas at Austin and the University of Houston have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here. Inside Climate News' Peter Aldhous contributed to this report. First round of TribFest speakers announced! Pulitzer Prize-winning columnist Maureen Dowd; U.S. Rep. Tony Gonzales, R-San Antonio; Fort Worth Mayor Mattie Parker; U.S. Sen. Adam Schiff, D-California; and U.S. Rep. Jasmine Crockett, D-Dallas are taking the stage Nov. 13–15 in Austin. Get your tickets today!
