The Texas Blackout Is the Story of a Disaster Foretold

“it wasn’t as if those running the Texas energy system’s various fiefdoms—the grid, the power plants, the natural gas–production facilities—hadn’t been warned about the dangers of severe weather. Hell may not freeze over, but history suggests that Texas’s energy system does—and with some frequency. In 1989, in 2003, and in 2011, the state experienced, to varying degrees, simultaneous shutdowns of power plants and parts of its natural gas–producing infrastructure, as significant swaths of both of those critical systems were incapacitated by arctic temperatures, triggering blackouts.

The frigid weather during the first four days of February 2011 knocked off enough power generation throughout ERCOT—about 29,000 megawatts of capacity—that ERCOT initiated blackouts affecting about 3.2 million customers, according to a voluminous postmortem of the failure produced in August 2011 by the Federal Energy Regulatory Commission and the North American Electric Reliability Corp. That report suggested the state add teeth to its effort to gird its energy infrastructure for wintry weather. Among its policy recommendations was that in states in the Southwest, including Texas, legislatures require power companies to submit winterization plans and give their public-utility commissions the authority to require senior executives of power companies to sign off on those plans and the authority “to impose penalties for non-compliance.” Magness, the ERCOT chief, said that in the wake of the 2011 report he and others met with Texas power generators to suggest that they better winterize their facilities. He was asking, not telling. “It wasn’t a conversation like, `I’m your regulator and you have to do this,’” he recalled. “It was sharing those best practices.””

“Under the deregulation scheme passed by the Legislature more than two decades ago, Texas has a market design that allows generators to make money only by selling juice—not for investing in equipment that could help produce extra power in the event of an emergency. Critics contend that this approach, part and parcel of Texas’s aversion to regulation, makes the state’s energy system less reliable, even as it boosts profits for some market participants. Based on their biographies on the ERCOT website, at least eleven of the fifteen ERCOT board members have current or prior ties to the energy industry.”

“Texas lawmakers, as they investigate what went wrong this past week, ought to explore weatherization mandates.”

“better weatherizing power infrastructure, like inducing electricity producers to invest in extra generating capacity, likely would raise Texans’s electricity rates. “Is it worth the cost to consumers?” he asked. I asked him if ERCOT had any answer to that question. “I am not aware,” he said, “that we have ever conducted a real cost-benefit analysis on that topic.””

“the electricity blackout and frozen pipes in Texas had significantly curtailed the state’s production of oil and natural gas. IHS estimated that nearly 20 percent of natural-gas production, and perhaps an equal or greater percentage of oil production, in the continental U.S. in the first half of February had been shut in—and that the Permian Basin, the big oil-producing region that sits largely in West Texas, accounted for the biggest share of that production drop.
A couple of hours later, the governor, who earlier in the week had called for top ERCOT leaders to resign, issued an announcement. Years after Texas officials had been advised to do so, Abbott said he would ask the Legislature to mandate the winterization of power plants across the state—and to “ensure the necessary funding” for it.”