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Understanding the Cost of Grid Interruptions in Texas

Apr 18, 2024 | News, Txses Impact

By Ethan Miller and Mohammed Alkhabtib

Cranes working on power lines

In our ongoing commitment to strengthen Texas’s energy infrastructure, the Texas Solar Energy Society is proud to update our members on a crucial initiative. Spearheaded by our research team, we have embarked on a project to estimate the economic impact of grid service interruptions across the state due to the extreme weather events our state has been experiencing.

Last year, we projected that these interruptions could cost our state economy around $2 billion in 2023. However, we have refined our methods and adjusted our focus to 2022, in order to take advantage of the more comprehensive data available. This change allows us to provide a more accurate and actionable analysis as we advocate for necessary grid reforms.

The challenges of this analysis are manifold, particularly due to the diverse nature of Texas’ electricity providers. Our initial approach of using data from utility providers proved too complex due to their varied customer bases, ranging from noncompetitive municipal services to competitive retail providers. To overcome this, we shifted our focus to Transmission and Distribution Utilities (TDUs). These entities, regulated as natural monopolies, manage a unified network of electrical wires across Texas and are monitored by the Public Utility Commission of Texas (PUCT). This strategic pivot ensures our analysis covers the entire Texas grid, leveraging data from 68 recognized TDUs.

Another significant hurdle was choosing the right data sources to accurately capture the frequency and duration of power outages. The PUCT’s Annual Service Quality Reports provided some insights but were limited to private TDUs and lacked comprehensive customer data. Thus, we opted for the broader and more detailed EIA 861 dataset, which aligns with the standards set by the Institute of Electrical and Electronics Engineers for 2022. This decision has enhanced the reliability of our preliminary estimates.

To date, we have completed estimates for 24 out of the 68 TDUs, suggesting a potential cost of $68.6 billion in 2022 alone. We continue to seek IEEE-compliant data from other utilities and will update our findings accordingly.

The insights garnered from our detailed analysis not only quantify the financial impacts of grid interruptions but also illuminate the path forward for enhancing grid reliability. The Texas Solar Energy Society is committed to using this crucial data to advocate for comprehensive grid maintenance strategies that are not only responsive but also proactive. By presenting our findings to decision-makers, we aim to underline the economic necessity of investing in our grid infrastructure. This initiative will support the development of well-informed policies and funding allocations, ensuring that future grid interruptions are fewer and less severe. Our goal is to equip Texas with a robust and resilient energy system that can withstand the challenges of tomorrow, safeguarding our economy and enhancing the quality of life for all Texans. 

As we proceed, your insights and inquiries are invaluable. For further information or to engage in this discussion, please contact Ethan Miller at ethan@txses.org, or Mohammad Alkhatib at mohammed@txses.org. Together, we can pave the way for more resilient energy solutions in Texas.

Penalizing Solar Homeowners Is Not Good Public Policy

Apr 23, 2021 | News

By Howard ‘Scot’ Arey

Potential anti-solar policies at the Pedernales Electric Coop (PEC) threaten to derail future distributed solar in PEC’s service territory, the rural electric cooperative that serves more meters than any other U.S. co-op.

With a little less than eight weeks until sine die, May 31, 2021, the Texas legislature is still debating the right policies to remedy February’s massive grid failure from Winter Storm Uri. Yet there is another battle raging below the watchful eyes of energy lobbyists.

The Pedernales Electric Cooperative (PEC) is poised to implement behind-the-meter solar policies that will transform it from being inarguably one of Texas’s most supportive distributed solar proponents to perhaps the most punitive.

How could this have happened so quickly?

Just a few years ago, I wrote an article lauding the PEC’s policy and its positive effects on one of Texas’s fastest growing industries. But a few key leadership changes later, the current PEC team and board is on track to enact policies that degrade the distributed solar value proposition, not just for new solar owners but for homeowners who have already invested in solar to guard against rising electricity prices and to do their part for climate action.

Loaded language in recent policy (“this class [solar] is being heavily subsidized”) with little supporting data swung the PEC pendulum from proponent to adversary of distributed renewable energy. Not lost in this shift: the punitive charges and rate structure were put in place after it installed numerous community solar farms – on its side of the meter and pricing.

Fixed-rate structures for non-interconnected customers are PEC’s answer for most homeowners. But for the small percentage of solar homeowners, PEC will impose the highest-in-state application fee ($650 for a now two-step application) and time-of-use (TOU) rate structures with commercial-like demand charges to approximate solar customer grid use.

As the rural electric cooperative that serves more meters than any other U.S. co-op, PEC’s potential impact is huge. Instead of implementing policies that threaten to derail future solar investments, PEC could be the example of how to build a safe, resilient grid with distributed energy resources in Texas.

We’re in a whole new world.

Whether reducing electric demand with solar, installing the highest-SEER-rated HVAC system, or charging an EV, the only common denominator is that every homeowner is only that – a homeowner. Everyone should be treated equally. If PEC proposed policies represent a better way to send price signals and measure homeowner use of the grid, then it should be just as smart for non-solar homeowners as it is for solar homeowners.

Let’s hope that PEC pauses these rushed policy changes that will sabotage the investment of so many who have already gone solar and those yet to go solar. Penalizing solar homeowners is not good public policy.

Howard ‘Scot’ Arey is the owner of Solar CenTex, a solar installation company that designs and installs residential, commercial, farm and ranch, and small municipal solar projects. He is also Chair of TXSES.