Watchdog Group Scolds ERCOT for Inability to Meet TX Energy Demands
The state of Texas is in a really precarious place when it comes to energy right now. The short story is that there aren't enough reserves in the state to meet electricity demands in peak times. An electricity grid watchdog group recently targeted the Electric Reliability Council of Texas (ERCOT), saying that ERCOT does not have a good plan in place for dealing with this important issue.
The North American Electric Reliability Council (NERC) is a national watchdog group for the electricity grid funded by the industry itself. Chief executive Gerry Cauley wrote a detailed letter to ERCOT about the fact that there aren't enough energy reserves in the state at this time. He further stated that he wants a full report outlining a strategy to deal with this issue before the end of April 2013.
So what exactly is going on with Texas? It is basically an issue of supply and demand. Texas is a huge state with a lot of people spread out over a large space and they create a huge demand for energy. They have one of the largest energy demands not just in the United States but in the entire world. The state is currently not generating enough power to meet those demands and during peak times this leads to blackouts because of stress on the TX electricity grid.
Many different tactics have been used and proposed for dealing with the issue. Part of the problem is that super low prices on energy are causing a higher demand without a corresponding supply so raising the price ceiling on energy has been one solution. The low cost of natural gas and electricity right now is creating a situation where investors don't want to come to Texas for this industry because it's not as lucrative as in other states. Many people are trying to blame deregulation of the energy market for this issue. However, many other states have embraced deregulation successfully without these same risk factors, so the entire situation needs to be assessed. The NERC says that ERCOT must create a plan to resolve these issues and encourage investments in order to build up reserves of energy in the state.
Publish Date: 2013-02-06 12:06:31
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