Texas Pols Raise Concern About "Blackouts", Price Spikes From ERCOT Reserve Margin
January 26,2018
Texas State Rep. Drew Springer has raised concerns about "blackouts" from ERCOT's projected low reserve margin
In a letter to the Texas PUC, Springer wrote, "According to recent estimates, Texans are expected to use a record amount of electricity this summer, a fact which should be of concern for any policymaker. Even more concerning though is ERCOT's most recent Capacity, Demand, and Reserves Report (CDR) that predicts a dramatic reduction in the already limited excess power availability for the upcoming summer. Naturally, this raises some concerns including potential power outages for businesses, the agricultural industry, and the homes of my constituents."
"It is my understanding that the PUCT has opened docket 47199 in order to examine market-based options that might be available to address any potential generation shortfalls. As a strong proponent of the Texas electric model, I encourage you to work diligently and seek a solution that benefits all market participants, including our business, agricultural users, and residential consumers. The current reserve levels have not been a hindrance to creating the Texas Miracle. However, I fear a new standard that creates brown/blackouts would cause future companies to think twice about choosing Texas," Springer wrote
Texas State Rep. Ron Simmons filed a similar letter with the PUCT which, although it did not use the term "blackouts" or cite economic development specifically, did raise concerns with the reserve margins.
"Are we allowing the stage to be set for price spikes during the peak summer demand season and how will this potentially affect grid reliability, if at all? These are just a few of the initial questions that came to mind when l heard about this report," Simmons wrote
Neither Simmons nor Springer advocated for any specific policy with regards to their concerns