The Texas Power Grid and Consumer Freedom of Choice - Accent Energy
Texans have a deep-rooted belief in the importance of independence and the freedom to determine the course of their own lives. It's no surprise, then, that Texas is the only state in the Union that has its very own electrical power grid. The fact that Lone Star Staters get their electricity from the Texas Interconnect has advantages and disadvantages. Texas also enjoys the benefits of the recent deregulation of the electricity market, allowing customers to exert more control over their monthly bills.
The Texas Interconnect is regulated by ERCOT, the Electric Reliability Council of Texas. Headed by President and Chief Executive Officer Bob Kahn, ERCOT is responsible for managing the flow of power to 22 million customers. The electricity is generated by over 550 plants and is transmitted over a grid consisting of 40,000 miles of line. ERCOT's most important responsibility is to make sure that those 22 million customers have a steady supply of electricity. Best of all for Texas energy consumers, their electricity rates are often cheaper than the American national average. In the year 2007, Texans paid 10.11 cents for each kilowatt of power they used, putting the state in sixteenth place nationwide.
In an article for Slate Magazine, Brendan I. Koerner notes that the Texas Interconnect System was designed during World War II to ensure Texas factories had a reliable supply of power for wartime material production. The state is able to maintain its independence because of its abundance of fossil fuels. (As Koerner says, Texas ranks fifth in the nation in annual production of coal and possesses 24 percent of America's natural gas reserves.)
Hiccups in such a big, complicated system are inevitable. As Texas turns to greener technologies for its supply of electricity, the grid and those who monitor it must be vigilant and adjust to unexpected fluctuations in both supply and demand. For example, in February 2008, the Texas power grid experienced an "emergency" when cold temperatures and a sudden drop in wind caused a reduction in power generation. While wind power was usually contributing 1,700 megawatts to the system, it had dipped to 300 megawatts, a dip that required operators to compensate. The disparity was so serious that ERCOT was forced to cut power supplies to certain high-volume customers. Fortunately for those users, power was restored to everyone in less than ninety minutes, and the system was back to normal within three hours. The Texas power grid is not just dependent on the wind. For example, the increasing amount of solar power collection is dependent on available sunshine. Extremes in temperature can corrode infrastructure, while inclement weather sometimes brings down power lines and forces regulators to channel power in a more efficient way.
As an agency with such great responsibility, ERCOT must look to the future and implement changes to the Texas power grid for greater efficiency. They must also address the challenges of a growing population and rising electricity needs. A highly advanced nodal network is being implemented in Texas, controlled by computers that will be able to adapt to changes in the balance between power needs and the available inventory. ERCOT and other regulatory agencies are in the process of implementing a system that would redesign the way electricity prices are determined. The changes could save customers an estimated 5.6 billion dollars over ten years. With over 4,000 power distribution nodes channeling electricity across the grid, increased efficiency will mean less system volatility in addition to lower power bills.
In 2002, Texas electricity consumers benefited from the passage of Texas Senate Bill 7. The legislation allowed consumers to choose which company would provide their electricity, instead of being locked into using a company with a government-mandated monopoly. With the addition of competition to the Texas utility landscape, consumers could decide for themselves which company best suits their needs. After passage of the bill, power companies were forced to reach out to satisfy customers.
Although the laws have only been in effect for several years, the majority of Texas power customers have changed companies at least once, indicating that competition is working. Empowered to choose, customers can decide which company provides the best reliability, price and service.
In recent years, the independent Texas energy market has changed because of deregulation and the increasing incorporation of alternative energy sources. As the needs of residential, commercial and industrial customers evolve, companies such as Dynowatt evolve to meet those needs, ensuring the Texas Interconnect is prepared to keep the lights on for all Texans.