Latest news with #SenateBill6
Axios
4 days ago
- Business
- Axios
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.
Yahoo
27-05-2025
- Business
- Yahoo
Texas House OKs bill to boost power grid protection, strengthen ERCOT's emergency authority
A proposal to grant regulators increased oversight of electric generation and transmission, along with equipping the state power grid's manager with tools to better forecast energy needs, passed the House on Tuesday. The legislation is now heading back to the Senate to review the lower chamber's changes to the bill. Senate Bill 6 is the Legislature's latest effort to reduce the risk of widespread outages during peak demand times by allowing the Electric Reliability Council of Texas, which manages the state power grid, to cut power to large-scale consumers during an emergency. That should encourage power-hungry operations like data centers to develop their own backup systems, said Rep. Ken King, R-Canadian, who sponsored the bill in the House. "You certainly don't want large-load customers that sometimes are data-centered for military operations, or whatever, to just be without power when there's an emergency," King said during the floor debate. According to the bill analysis, SB 6 focuses on four main objectives: Ensuring that transmission costs are properly allocated. Establishing measures to protect grid reliability. Promoting transparency and credibility in load forecasting. Protecting residential customers from outages by requiring large loads to share the load-shed obligation during shortages. More: Renewables bailed out Texas' grid earlier this month. Now the GOP wants to restrict them In March, ERCOT CEO Pablo Vegas told a congressional committee that Texas set an all-time peak demand record of 85,508 gigawatts in the summer of 2023 — a record he expects the state will break sooner than later because, in part, large-scale consumers are bringing their operations to the Lone Star State. "Texas has become a magnet for industries that require increasing amounts of electricity, from semiconductor plants to data centers, broad industrial growth and large-scale industrial electrification in the Permian Basin," Vegas told the House subcommittee on energy. Under the bill, ERCOT would be able to expedite connecting large consumers to the grid, provided they install on-site backup power sources. The House and Senate versions of SB 6 are different, so unless the Senate agrees with the House's changes, a conference committee will have to reconcile the two versions into a final bill. This article originally appeared on Austin American-Statesman: Texas House OKs power grid-protection bill, boosts ERCOT's authority
Yahoo
26-05-2025
- Business
- Yahoo
Bill that would increase oversight of Texas' largest energy users gets initial approval in Texas House
The Texas House gave initial approval Monday to a bill that would give Texas more oversight over energy transactions between power generators and the state's largest consumers of electricity. Senate Bill 6 also proposes new ways to assess the amount of electricity that is available to the Electric Reliability Council of Texas, the main manager of the state's grid. The bill now returns to the Senate. Legislators in the upper chamber must agree to the changes made to the bill before it goes to Abbott. The bill would give ERCOT the power to oversee energy transactions between power generators and large consumers that don't involve the state's grid. ERCOT would also have the authority to cut their power and use it during an emergency. State Sen. Phil King, R-Weatherford, the bill's author, has said his bill will allow the state to better manage electric supply at times of high demand. Power generators and companies said the new oversight measures proposed by the bill would be excessive for a market accustomed to the free trade of energy without requirements imposed by the state. They have said the bill could discourage companies from doing business in Texas. King said the new rules are not meant to do so. 'I think what this bill is seeking to do is set out clear rules where large load customers that want to come to Texas know what they're getting when they get here,' said state Rep. Ken King, R-Canadian, who sponsored the bill in the lower chamber. The bill would also require companies to disclose whether they have other projects in the state. Sen. Phil King said this would give ERCOT information to better predict and meet energy demands in the future more accurately. That's necessary to determine the state's electricity needs without overbuilding, which would result in higher rates for everyday consumers, he said. Texas will need almost double the electricity it consumes today to meet a demand driven mainly by data centers and the oil and gas industry, a demand that ERCOT President Pablo Vegas said the grid, in its current state, is capable of meeting when that demand arrives. Lawmakers added and removed some provisions from the bill during a debate in the House on Monday. One amendment got rid of a previously accepted proposal by state Rep. Drew Darby, R-San Angelo, which gave new large businesses in Texas the option to get electricity faster from the grid if they let ERCOT reduce their power consumption at will. Another amendment approved Monday, introduced by state Rep. Richard Peña Raymond, D-Laredo, would inject any excess electricity back into the grid and use any money from selling that energy to lower water bills for electricity ratepayers. 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!
Yahoo
22-05-2025
- Business
- Yahoo
Lawmakers propose new bill to lessen crypto industry's impact on households: 'We need to rise to the challenge'
Cryptocurrency miners and data centers have found a home in Texas because of abundant, cheap electricity. However, as CCN reported, newly proposed legislation could create stricter standards to limit these activities because they are raising utility rates for households. Cryptocurrency regulations focus on energy consumption, tax considerations, and environmental impacts. Multiple states have laws to manage the energy demand of crypto mining and to protect miners from regulations that might otherwise treat them like data centers. Regulations develop frameworks for the cryptocurrency industry and can help prevent legal issues like money laundering and fraud. Lawmakers in Texas have suggested new regulations on cryptocurrency mining out of concern for residents' energy bill costs. Mining consumes vast amounts of energy, and Texas has been able to supply that energy through natural gas, wind turbines, and other sources. Major mining operations have built enormous facilities in Texas because of dynamic pricing schemes that offer discounted rates and the opportunity to sell unused power back to the grid. However, these activities have contributed to strain on the Texas grid. Proponents of the Texas bill say that large mining operations now require more oversight to stabilize the energy grid. A big reason for this is that while crypto miners generate tens of millions of dollars monthly, ordinary Texas citizens are seeing their utility bills rise. "I think we need to rise to the challenge of getting the needed generation onto the grid," said bill sponsor Senator Charles Schwertner, per the Texas Tribune. "But there is eventually a prioritization that could be discussed, and obviously Texans — their families, their homes, their businesses — are the most important individuals, the most important clients for electricity." Laws like the proposed Senate Bill 6 (SB6) in Texas have the potential to keep utility costs affordable for homeowners while ensuring crypto operations are accountable for their energy usage. Do you think your city has good air quality? Definitely Somewhat Depends on the time of year Not at all Click your choice to see results and speak your mind. Electricity used to power mining and AI data centers affects energy prices for people completely unaffiliated with those industries. To keep energy affordable in Texas and worldwide, it is crucial to invest in renewable energy, promote energy conservation, and improve energy efficiency. These goals can be achieved by developing clean energy infrastructure, implementing policies that reward clean energy adoption, and embracing smart grid technologies to minimize energy waste. Meanwhile, greener digital currencies and eco-friendly blockchains can help reduce excessive energy consumption. With energy demands growing rapidly due to advancing technology, it is important to balance profits with climate sustainability and people's livelihoods in our communities. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
07-05-2025
- Business
- Yahoo
Texas may put restraints on new big businesses hoping to tap into the energy grid
ODESSA — Texas will need a lot more energy in the future. Driven largely by demand from businesses such as data centers and the oil and gas industry, the Electric Reliability Council of Texas, the state's grid operator, predicts the state's energy needs will nearly double in six years. State Sen. Phil King, R-Weatherford, worries ERCOT is not working with a full picture. He told a legislative panel as much in February. 'We do not have accurate load forecasting. No one knows if the forecast is real,' he said. Large companies, he added, are requiring ERCOT to plan 'for load growth at dramatically higher levels than experienced ever in the history of Texas, and frankly, ever in the history of the United States.' And 'without credible data, we run the risk of overbuilding, with high costs being passed on to consumers, or underbuilding, further exacerbating scarcity,' he said. [Renewable energy companies face little regulation in Texas. A state lawmaker wants to change that.] He believes his legislation, Senate Bill 6, will put restraints on the state's open-energy market, and help the grid plan for the future to save rate payers money and avoid another catastrophe when extreme weather strikes again. The bill, which has already won Senate approval and is expected to start its journey in the Texas House Wednesday with a committee hearing, would place more requirements on businesses meant to help ERCOT better forecast the electricity needs. Businesses would also have to pay more in advance of operating. While business groups have said they agree the grid needs more security, they believe King's bill is too heavy-handed. They said some of his proposals won't help ERCOT's planning and put their operations at risk. They want changes to the bill, such as removing language that would grant ERCOT the ability to disconnect power to major energy users during an emergency, and new rules on arrangements between power generators and companies. Michael Jewell, an attorney who has represented large industrial companies on energy issues and policy, said King's legislation will need to strike a balance between addressing the growth without scaring companies away. 'This legislation is important to finding that balance, that we can bring these large loads into the ERCOT region, grow the Texas economy, and support the development of this technology,' he said. 'But we also want to be sure that we, as Texans, will continue to have reliable electricity.' King's bill only applies to industrial-sized facilities, or those needing more than 75 Megawatts. Under the bill, businesses wanting to plug into the grid must disclose whether they have similar requests elsewhere in Texas or out of state. Companies must tell ERCOT if their backup generators can meet at least 50% of their power. During an emergency, ERCOT could instruct facilities to use that power, instead of the grid. Another provision allows ERCOT to shut off a facility's power in an emergency. ERCOT must give the facilities a day's notice. Facilities sometimes negotiate directly with power generators, like gas-fired plants, to satisfy their electricity needs without connecting to the grid. The bill gives the Public Utility Commission, which regulates electricity and some water and wastewater, authority over such arrangements, allowing it to approve or reject them, in addition to 180 days of review. Companies would also have to pay an electric, municipal utility or a cooperative at least $100,000 to study the transmission work necessary to transport electricity to their facilities. Companies must also demonstrate that they can afford to contribute to the construction of transmission lines and purchase any equipment or services. The bill also directs the utility commission to determine how to better allocate transmission costs, including looking at peak demand, the point at which supply meets demand. King acknowledged the strain on the state's power grid means more businesses are moving to Texas, something he supports. 'I want to make it very clear that while this load growth is a strain on the ERCOT grid, it is also an excellent opportunity for the state of Texas,' King said in February. 'So long as we manage it properly (and) not create reliability risks or pricing issues for everyday Texans.' Groups consisting of the facilities King is targeting said parts of his proposals won't benefit ERCOT's efforts to make the grid reliable or lower prices. Dan Diorio, a government affairs expert for the Data Center Coalition, a national group, said it is supportive of the goals the bill is trying to reach. But in its current form, the group said it has lingering concerns as the bill moves through the House, including a provision requiring companies to disclose information that he said is unnecessary for the grid, such as out-of-state requests for electricity. He said ERCOT can separate serious requests within Texas. 'This is a highly competitive industry,' he said. 'So not only do we have competitive concerns about that, because this is proprietary information, but how is that going to inform the forecast correctly?' He said diesel makes up most backup power generation, and is a fuel overseen by the federal government and the Texas Commission on Environmental Quality. Forcing companies to run emergency generators could lead to air emissions violations and air pollution, Diorio said. Diorio added that the information data centers collect and maintain — including from local and state authorities — could be put at risk when the system shuts down. Proposing to shut off power, even with a notice, could risk public safety, adding that the bill does not offer enough specificity regarding how the shut-off would be implemented. Walt Baum, president of Powering Texans, a group representing natural gas power generators, said the bill imposes administrative requirements on agreements between power companies and facilities. In this case, the company would pay the power generator directly for the needed electricity. Baum said a company could otherwise go directly to the grid, drawing out the same amount of electricity it would have gotten from the generator directly. The amount of energy used would not change. 'And the impact on the grid is the same,' he said. 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!
