Many people head inside and flick on the air conditioning unit when it’s too hot outside. During colder winter weather, perhaps the heating goes on alongside the coffee maker for a warming drink.
All these comforts require energy delivered over enormously complex infrastructure. In keeping with the state’s independent nature, the Texas power grid stands separate from the United States grid.
However, outages and blackouts are becoming a more familiar experience for many people. Tellingly, electricity usage is expected to grow steadily nationally in the coming decades, adding more pressure to existing power structures and systems.
Then there is global warming. Climate change may lead to warmer summers and more extreme weather events, from intense and prolonged heat waves to heavier downpours and erratic winter storms.
Let’s look at how the Texas power grid is standing up to the challenges of increased demand for electricity and some precautions that can be taken to avoid another situation like the winter storm of February 2021.
What Happened During the Texas Winter Storms?
Texas has endured two powerful winter storms in the last couple of years.
The 2021 winter storm brought unprecedented cold weather, over 200 fatalities, and billions of dollars of damage. Blizzards were accompanied by plummeting temperatures that reached as low as five degrees Fahrenheit (-15 degrees Celsius). The U.S. National Weather Service reported almost nine days of extreme winter weather warnings.
The cold snap froze vital equipment in the natural gas industry, halting production at some wells. Some natural gas power plants couldn’t operate, either, reducing the electricity supply. Wind turbine blades also froze, further hampering electricity generation capacity. As people stayed home and tried to keep warm, the Texas power grid couldn’t meet demand.
The result was more than 4,000 outages that left more than 4.5 million people without power for up to four days, all during freezing temperatures. People with electric heaters had no way to keep warm, with many dying of hypothermia or frostbite. More than 14 million people in cities including Austin, Houston, and San Antonio, had to boil drinking and cooking water.
People on variable-rate energy plans saw electricity prices explode and received enormous bills. Pre-storm prices of 12 cents per kilowatt-hour climbed to $9 per kilowatt-hour, leaving some with utility arrears in the thousands of dollars.
A year later, February 2022’s cold snap in Texas brought fewer power cuts and problems, with no widespread outages after improvements to the grid’s resilience. However, it’s not just the cold that can bring power disruption.
Are Power Outages Common in Texas?
Nationally, the average U.S. home experienced eight hours of power interruptions in 2020, up from just under five hours the previous year. Weather-related major power outages were up 67% between 2000 and 2019 nationally. During that same period, Texas ranked second-worst for blackouts with 105 outages, affecting an average of 245,000 people annually.
If you want to know how the grid is coping right now, there are websites that show real-time outages. So why does the Texas grid have so many challenges? For one, hotter summer temperatures and demand for air conditioning have had a major impact. In the last 125 years, average daily minimum and maximum temperatures in Texas have increased by 2.2 degrees Fahrenheit (1.3 degrees Celsius). December 2021 was the hottest on record since 1889.
It must be said that Texans are used to blackouts. There are frequent warnings asking residents to conserve electricity when demand comes close to eclipsing supply. If demand continues to outpace supply, authorities can impose rotating blackouts of up to 45 minutes to balance the grid.
How Should I Prepare for a Power Blackout?
You can prepare for a blackout by stocking up on some essentials, including:
- Water supplies
- Non-perishable foods
- Flashlights and radios with fully-charged or fresh batteries
- First aid kit
- An evacuation and safety plan
You can also check our guide for power outage preparation.
What’s the History of the Texas Power Grid?
The late 1800s saw many small and local power plants pop up across the United States, including Texas. These power systems began to stitch together, so much so that by 1935, the U.S. federal government wanted to regulate electricity across state lines.The late 1800s saw many small and local power plants pop up across the United States, including Texas. These power systems began to stitch together, so much so that by 1935, the U.S. federal government wanted to regulate electricity across state lines.
Texan lawmakers decided to maintain an independent power grid and avoid federal regulations.
Nationwide blackouts, including an outage to 30 million people in the northeastern United States and southeastern Ontario in 1965, led to the formation of the National Electric Reliability Council in 1968. Texas followed and, in 1970, set up its own reliability board, the Electric Reliability Council of Texas, or ERCOT.
To this day, the Texas power grid is not bound to federal oversight.
How Many Power Grids Operate in the United States?
The United States has three power grids:
- The Electric Reliability Council of Texas (ERCOT) covers the majority of Texas
- The Western Interconnection serves homes and businesses to the west of the Rocky Mountains to the coast
- The Eastern Interconnection provides electricity to the east of the Rockies and a part of the Texas panhandle
ERCOT’s grid doesn’t connect with other power networks. When Texas lacks electricity, it cannot import electricity from other power grids.
How Do I Know Which Texas Power Grid Supplies My Home?
Two companies manage the Texas power grid.
ERCOT supplies 90% of addresses. The Southwest Power Pool maintains parts of the grid in the Texas panhandle, according to the Federal Energy Regulatory Commission (FERC). Texans can call their utility company to find out which power grid supplies their home.
What Is ERCOT’s Role in Texas?
The Electric Reliability Council of Texas (ERCOT) is a nonprofit corporation that manages the state’s electrical suppliers networks. ERCOT serves around 26 million people, delivering a reliable power supply to customers and balancing demand and loads. Along with its board of directors, ERCOT is regulated by the Public Utility Commission of Texas (PUCT).
The company ensures power generation companies can access the market while protecting customers from market forces. ERCOT also schedules power flows, making sure there is enough power to balance supply and demand. This is important when there are power surges, for example, on hot days when people turn on the air conditioning or during extreme weather events. People can follow the grid and market conditions online.
Where Does the Texas Power Grid Get Its Energy?
Texas is an energy powerhouse, producing 43% of the nation’s crude oil and 25% of its natural gas supply in 2021. The Lone Star state accounted for 26% of all wind-powered electricity that year. In fact, Texas creates more electricity than any other state — but is also the largest energy-consuming state in the United States.Texas is an energy powerhouse, producing 43% of the nation’s crude oil and 25% of its natural gas supply in 2021. The Lone Star State accounted for 26% of all wind-powered electricity that year. In fact, Texas creates more electricity than any other state — but is also the largest energy-consuming state in the United States.
Who Oversees the Electricity Market in Texas?
Texans affect the state’s deregulated market through democratic means.
People vote every six years to appoint commissioners of the Texas Railroad Commission. The latter regulates the state oil and gas industry, among other responsibilities.
Texans also vote for a governor who appoints commissioners to the Public Utility Commission of Texas (PUC or PUCT), which regulates the Texas power grid.
ERCOT oversees and manages the real-time supply and demand of the majority of Texas’ power grid. It has to answer to the regulatory PUCT if there are issues.
How Does Texas Generate and Distribute Electricity?
Other players in the electricity supply chain operate under the overarching regulators mentioned above.
Power plants generate electricity to load into the power grid. In 2021, natural gas power plants produced around half of Texan electricity. Texas also has a robust and growing renewable energy sector, with wind power making up to a quarter of its total electricity generation capacity.
Next comes Transmission and Distribution Utilities (TDUs) — also known as utilities. These electric utilities deliver electricity to homes and businesses. TDUs are responsible for the grid‘s upkeep, from transmission lines to poles, and restoring power after an outage.
The main TDUs in Texas, and some of the areas they cover, include:
- TNMP: Lewisville, Pilot Point, Leonard, and Glen Rose
- Oncor: Dallas and Fort Worth
- AEP Texas: Abilene and Corpus Christi
- CenterPoint: Houston
Finally, a Retail Electricity Provider (REP), also known as your electric company or provider, bills you for your electricity usage. More than 130 REPs operate in the Texas electricity market and most Texans have the power to choose which provider they want.
How Do You Choose (or Switch) a Texas Energy Plan?
As mentioned, there are more than 130 retail electricity providers in Texas. Before we look at electric providers, it’s important to note that switching companies won’t improve supply issues or reduce outages. Only a more resilient Texas power grid can do that, along with maintenance from utilities (TDUs).
Energy deregulation in Texas means that around 85% of residents can choose their energy company. (People who cannot choose their electric company are assigned one by the PUCT.) Thousands of Texas power plans are available, from fixed-rates to free nights to 100% renewable energy products.
Variable-rate deals often allow customers to switch suppliers without incurring early termination fees. Always check your contract and electricity facts label (EFL) before moving companies. Variable-rate contracts are when the kilowatt-hour (kWh) fees change according to market conditions. This led to some people receiving enormous bills after the February 2021 winter storm.
Fixed-rate offers set the kWh price for a predetermined time frame. For example, kWh prices rise when people turn on the air conditioning in the summer. But fixed-rate customers don’t have to worry about those rises as they keep paying their agreed kWh rate until the contract ends. Such price security is vital during extreme weather events.
What Is the Best Power Company in Texas?
There’s a perfect power company and energy plan out there for everyone. The best power company in Texas for you may be the one with the lowest kWh price, or perhaps one with a time-of-use option like free evenings or weekends.
To compare power rates in Texas, you’ll want to browse through Powertochoose.org. Only PUCT-approved electric companies can advertise here, and they must list all terms and conditions in their electricity facts labels.
There are many filters to help, starting with a ZIP code locator to establish if you can choose your electricity provider. People can alter contract length, plan type (fixed or variable), amount of electricity used, and even company ratings.
Pro tip: Our Power to Choose guide will help you navigate the website to ensure you select a provider that works for your particular needs.
Texas Compare Power Rates: What to Know
Here’s a list of things you should know before comparing Texas power rates and power plans:
- Average monthly electricity usage for your current home or new address if you’re moving.
- How much you currently pay in kWh, if it’s a fixed or variable rate contract, and if you want prepaid electricity with no credit check.
- How long your deal has to run, and if there are any early termination fees.
- If your lifestyle suits a free weekends or free evenings time-of-use contract.
- Is your energy usage about to increase or decrease — for example, a new baby, someone is moving in or moving out.
- What do you want your new deal to bring? Price security with a fixed-rate plan or the flexibility of a variable rate?
Most importantly, never sign up for a deal before you understand your existing energy bill situation and any possible new contract details.
Pro tip: To compare power rates in Texas, check our guide to finding power plans. We’ve also got hints and tips on how to resolve energy bill issues in Texas.
Texas Power Grid: Making It Work for You
The Texas power grid, like many others, is under the stresses of rising demand and extreme weather events.
Deregulation means voters directly influence how the Texas power grid operates. People elect Texas Railroad Commission managers to oversee the gas industry and the Texas governor who sets up the board of directors at the Public Utility Commission of Texas. Ultimately, these bodies should ensure the smooth running and upkeep of the power grid so that customers can enjoy reliable and reasonably priced electricity.
The best power company in Texas for you is out there. Spend time researching and comparing power rates through helpful tools like the Power to Choose website. If necessary, you can switch energy suppliers and ensure that it all works better for you.
Brought to you by amigoenergy
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