Question 1

What Is a Power Grid?

Accepted Answer

An electric grid, or power grid, is the infrastructure that gets electricity from the place where it’s generated — such as a power plant — to its destination. That includes major transmission lines that carry electricity from one place to the next, as well as smaller power lines that deliver it to your home or business.  Power grids operate on the basis of supply and demand, and need to adjust the amount of power they produce in real-time in order to avoid overloads and blackouts.  In the U.S., there are two major power grids, the Western Interconnection and Eastern Interconnection, as well as three smaller grids in Alaska, Texas, and Quebec.

Question 2

Why Does Texas Have Its Own Power Grid?

Accepted Answer

Because the Eastern and Western Interconnection cross state lines, they’re subject to the Federal Energy Regulatory Commission (FERC), which regulates how electricity is transferred and sold in the U.S.  This commission was formed in 1935, under the Federal Power Act signed by FDR. It also oversees other issues related to power generation, such as hydropower, natural gas, and liquid natural gas (LNG) production.  Texas wanted to avoid federal regulation of its power system, so it chose to keep its power grid separate from the other interconnections. That means the Texas power grid doesn’t cross state lines and can be managed independently.

Question 3

Does the Power Grid Cover the Entire State of Texas?

Accepted Answer

If you look at a map of the Texas power grid, you’ll notice that it isn’t actually shaped like the state of Texas — it looks as if several big chunks have been cut out.  That’s because the Texas power grid doesn’t neatly follow state lines. Some parts of West Texas, including El Paso, are connected to the Western Interconnection, while parts of East Texas are connected to the Eastern Interconnection.  The Panhandle also gets its power from outside the Texas power grid, which explains why Texans in that region weren’t as affected by the 2021 winter weather crisis.  Overall, 90% of the state’s power supply comes from the Texas power grid, making it vital for the grid to produce enough power year-round.

Question 4

What Is ERCOT?

Accepted Answer

If the Texas power grid is so important and isn’t regulated by the FERC, then how is it managed? That job falls to ERCOT, the Electric Reliability Council of Texas.  As an independent system operator (ISO), ERCOT is responsible for over 1,030 power generation units and more than 52,700 miles of transmission lines.  ERCOT is technically a 501(c)(4) nonprofit made up of consumers, utility companies, cooperatives, electricity providers, and other entities.  ERCOT is overseen by a board of directors and ultimately answers to the Public Utility Commission of Texas (PUC or PUCT) as well as Texas lawmakers.

Question 5

What Is a Deregulated Market?

Accepted Answer

The fact that Texas has a separate power grid isn’t the only thing that distinguishes the electricity market in Texas from other states. It also has a deregulated energy market, which means that energy prices aren’t set by a public utility commission.  In states with a regulated market, generally the utility company owns and operates the infrastructure and charges consumers directly.  In Texas and other deregulated markets, such as New York and California, retail providers can purchase electricity at wholesale prices and sell it to consumers.  Proponents make the case that they give consumers more choices and allow energy providers to offer specialized plans such as renewable energy packages. However, most states with deregulated markets allow consumers to buy energy either from electric utilities or retail providers. In Texas, energy retailers are the only option.

Question 6

How Much Power Does the Texas Grid Generate?

Accepted Answer

Now that we know how the Texas power grid operates, how much power does it actually produce and where does that energy come from? According to the Energy Information Administration (EIA), “Texas produces more electricity than any other state … about 12% of the nation's total electricity net generation.”  In 2021, 38% percent of that power came from zero-carbon energy sources — solar, wind, and nuclear — and 42% came from natural gas.  Hydroelectric power contributes just a small fraction to the Texas power grid, while coal-fired plants make up most of the remainder.  That makes Texas a leader in wind energy, contributing over a quarter of total wind power generated in the U.S. each year. However, much of the Texas power grid is still dependent on natural gas, which led to major issues during 2021’s energy crisis.

Question 7

What Caused the 2021 Energy Crisis?

Accepted Answer

In order to function properly, the electric grid has to maintain a balance between supply and demand. For the Texas power grid, that balance is a frequency of 60 hertz.  During normal operations, power plants produce just enough electricity to keep the power flowing smoothly along transmission lines.  But when demand spikes — as it did on February 15, 2021 — operators have no choice but to cut power to some users. Otherwise, the entire power system could shut down and take months to repair.  Because some of those power cuts affected the natural gas supply chain, the amount of electricity available was reduced even further. Plus, some power sources — including natural gas plants and wind turbines — weren’t weatherized enough to keep functioning in cold weather.  The situation required ERCOT to reduce demand by “load-shedding,” or temporarily cutting some regions out of the power grid altogether.

Question 8

How Can Texas Fix the Power Grid?

Accepted Answer

After the 2021 crisis, Governor Greg Abbott promised to review what went wrong and make changes to the Texas power grid to avoid a repeat. But the complexity of the system means it isn’t as simple as ERCOT stepping in to fix things.  The natural gas industry is overseen by a separate organization, the Texas Railroad Commission, so it’s up to them to require the weatherization of natural gas plants.  Other solutions include weatherizing wind turbines, building more power plants, and incorporating a more diverse range of energy sources.

Question 9

Could the Texas Power Grid Fail Again?

Accepted Answer

As Bloomberg explains, blackouts aren’t just a problem in cold weather. Heat waves can also contribute to energy spikes and shortages.  For some Texans, the 2011 crisis was their first experience of rolling blackouts, while others can remember blackouts as far back as 2006.  Blackouts can be especially dangerous for residents who rely on electricity to power their medical devices or don’t have alternative heating sources.  Some Texans are choosing to invest in backup generators but this isn’t an easy or affordable option for everyone.  Recent arrivals or people planning to move to Texas may have experienced rolling blackouts in other states but may be new to a deregulated energy market.  Since retail providers all get electricity from the same grid, switching to another energy provider won’t necessarily help individual consumers avoid blackouts. But it could help lower monthly electricity bills or provide access to renewable energy options.

Question 10

Where Can You Look Up Texas Power Outages?

Accepted Answer

The best way to get through a power outage is to plan ahead so you won’t be caught by surprise. Although you can never be sure whether a power outage is coming your way, the ERCOT website makes it easy to track supply and demand in real-time.  You can see the combined amounts of wind and solar being produced, as well as the projected load on the power grid one day in advance.  For more specific location-based information, visit PowerOutage.US, where you’ll find a map of Texas showing the number of customers out of power in each county.  You’ll also be able to see which electric providers have the most outages, helping you choose the best power company in Texas in your location.

Question 11

Can You Switch Power Companies in Texas?

Accepted Answer

In states with a regulated electricity market, you may not have a choice in where you get your power. But in states like Texas, you can change your energy provider to get better rates or choose a company that’s a better fit for your needs.  For example, if you’re concerned about your electricity bills rising, you can look for an electricity provider with a fixed-rate plan. Or you can choose a company that offers green energy plans to offset your electricity use.  Your current provider may charge a termination fee when you switch providers, but in the long run, the savings may be worth it. Always shop around and compare prices to get the best rates.  Another thing to consider is whether your energy provider offers a convenient customer experience, such as a mobile app to track your energy usage.

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