Texas Electricity Watch

The U.S. Military?s Green Mission

Tue, 05 Mar 2013 08:55:00 -0600

The U.S. Military’s Green Mission

The U.S. military is increasingly recognizing the need for smarter energy policy. The U.S government as a whole set a goal in 2007 to use 30% less energy than the 2003 baseline by 2015. Given that a substantial portion of the energy used by the government goes to feed military operations, it stands to reason that the military must contribute a substantial portion of that 30% reduction.

Energy Efficiency

For the Army, energy efficiency can be a matter of life or death. For a very real example, consider the case of the foam insulation program initiated in Iraq and carried over to operations in Afghanistan.

By using something called closed-cell spray polyurethane foam to insulate temporary structures such as tents, the Army has realized dramatic reductions in the amount of fuel needed to cool these structures.

According to Brig. Gen. Steve Anderson, director of operations and readiness at the Department of the Army Headquarters logistics office:

"Every gallon of fuel saved at installations and forward operating bases in theater means a lower fuel usage rate, thus resupplies don't need to happen as often. Less resupply needs means fewer trucks on the road transporting the fuel, and fewer drivers risking their lives on those dangerous roads."

The foam insulation technique was used on the gym at Camp Victory in Iraq. Prior to the application of a 2 inch thick coat of insulating foam to the large tent, it required 8 large A/C units running continuously to maintain the facility at an uncomfortable 92 degrees. After foaming, the tent the tent was maintained at 70 degrees with only 2 A/C units running.

By applying this technique to all structures expected to be in place for extended periods of time, the Army was able to save a remarkable $3.6 million per day in fuel cost and, more importantly, save lives.

Renewable Energy

Aside from energy efficiency efforts, the military has also made a commitment to renewable energy. In 2012 the secretary of defense and the secretary of the interior signed a “Memorandum of Understanding” intended to formalize the cooperation of the military and the domestic agencies in expanding the use of publicly owned military land for use in renewable energy programs.

The move opens up some 16 million acres of land for use in renewable energy projects such a solar, wind and geothermal. The military will make the lands available to private energy firms and buy back the electricity generated from the projects.

From the military’s perspective the push into renewable energy creates a degree of energy security. Most domestic military bases rely on the local electricity grid as their primary source of power.

Having their own readily available portfolio of energy reduces their dependency on civilian infrastructure for electricity and could allow them to carry on vital base operations for an extended period of time independent of the main grid.

The military aims to create microgrids for its bases that allow them to be self-sufficient. A microgrid would allow the base to run on its own power only drawing electricity from the local civilian grid occasionally and even allow it to pump power out into the local grid under certain circumstances.

Texas Continues to Set Records for Wind Energy

Thu, 10 Jan 2013 08:06:00 -0600

In a state where White Christmases are rare, many Texans saw their second Christmas Day snow in recent years as a strong cold front brought both winter chill and high winds. The high winds helped Texas set a new record for wind energy production as the state’s wind turbines were outputting 8,638 MW of power at 3:11 p.m. on Dec. 25. This amounted to just over a quarter of total Texas electricity production at the time, and bested the previous wind energy output record of set on November 10th of this year.

Texas Electricity 2013: Things Looking Up (Slightly)

Mon, 17 Dec 2012 10:14:00 -0600

The outlook for the Texas electricity market in 2013 seems to be improving – if ever so slightly. Due in large part to a prolonged period of low electricity rates, the state has struggled to incentivize energy producers to build enough power plants to keep up with the state’s growing demand for power.

After a couple of weather related scares in 2011 that tested the stability of the grid, Texas had a relatively stable 2012. But there still remains a great deal of concern for the future as the state’s reserve margin will shrink to dangerously tight levels.

Chicago Become Largest City to Implement Electricity Aggregation

Fri, 09 Nov 2012 10:00:00 -0600

The state of Illinois has aggregation fever. Despite the fact that the state have has electric choice for around 10 years, most consumers haven’t taken advantage of it. That is changing in a big way thanks to a law passed last year that allows municipalities to enter into aggregation agreements with electricity providers to provide cheaper electricity to the cities' resident’s.

As a result, scores of communities in Illinois had referendums on the ballet to allow their cities to shop on their behalf for a better deal on electricity. Chicago electricity consumers made Chicago the largest city in the country to pursue such an aggregation deal.

The city is expected to move quickly and have people switched to the new provider buy February of next year.

Oncor Raises Electric Bills for Dallas Residents

Tue, 06 Nov 2012 13:01:00 -0600

Oncor, the poles and wires utility responsible for delivering electricity to the Dallas / Fort Worth area market is adding about $60 per year to the average electric bill in the area by attaching a new pass-through fee to consumers regardless of who their retail electricity provider is. The fee is allowed under rules of the Texas deregulated electricity market to allow Oncor to recover the cost of infrastructure upgrades which include a large project to bring electricity from wind energy rich West Texas to the north eastern part of the state. Oncor is owned by the same corporate parent that own TXU, the states largest retail electric company.

Natural Gas and Oil Boom Strain West Texas Electricity Lines

Thu, 27 Sep 2012 08:16:00 -0600

The natural gas and oil booms in Texas have put strain on the west Texas electricity transmission infrastructure. ERCOT, the organization responsible for keep the Texas grid running announced this week that they are approving $57 million in upgrades to the power lines that serve west Texas.

Texas, a power to choose state, has been dealing with concerns over the ability of the state power grid keeping up with electricity demand. There was particular concern over the summer that narrowing reserve margins could potentially lead to rolling blackouts. Fortunately, the grid held up over the summer months without any major issues.

Interestingly, most Texas electricity is actually produced by natural gas.

Another Victory For Texas Over EPA

Wed, 29 Aug 2012 13:55:00 -0600

The U.S. Court of Appeals sided 2-1 in favor of multiple parties who were challenging the EPA’s Cross-State Air Pollution Rule. Among the three dozen or so challengers to the rule was Energy Future Holdings, parent of Luminant Generation, the largest electricity producer in Texas. Energy Future Holdings is also the parent of TXU, the largest retail electricity provider, in the state.

The Texas electricity system is under a great deal of strain and Texas in engaged in a very public battle with the EPA as the state challenges not just specific rules of the EPA but the authority of the agency to supersede the authority of the state.

ERCOT's CEO Trip Doggett, in a prepared release, said "the rule, as originally proposed, had potentially far-reaching reliability impacts for a grid in which electric use is growing far more rapidly than new generation resources are being built to serve that need."

Texans With Electric Choice More Satisfied Than Those Without

Wed, 15 Aug 2012 15:38:00 -0600

It may seem obvious that people who can choose their electric provider are more satisfied with their service than those who don’t have a choice. But, that hasn’t always been the case in Texas.

According to JD Power, however, it is now official. Texans in deregulated parts of the state for the first time report more satisfaction with their electric provider than those in non-deregulated areas that are stuck with monopoly providers.

According to JD Powers, electric rates are the most important factor in determining customer satisfaction; although other measures such as billing and customer service went into the ranking.

Satisfaction ratings reported by Texas consumers in deregulated areas where higher than both those for Texans in non-deregulated areas as well as the national average.

It should come as no surprise that Texan’s are more satisfied with their choices of electricity providers and electricity plans. Deregulation coupled with smart meter technology has enabled a wide range of options for Texas consumers including 100% renewable energy plans, long term fixed rate plans, and prepaid electricity plans

For the third consecutive year Champion Energy customers reported the highest satisfaction rankings while Bounce Energy also scored 5 out of 5 overall.

TXU Energy had a middle of the road score with 3 out of 5 dots in every category.

Power To Choose Tested as Texas Officials Call for Conservation

Tue, 07 Aug 2012 09:11:00 -0600

Electricity demand in Texas neared 66,000 megawatts on the last day of July. This breaks the previous July hourly record of 65,432 megawatts set last year during one of the hottest and driest summers in Texas history.

Texas power to choose is being put to the test as Texas struggles to come up with enough electricity to meet the ever increasing demand for power in the Lone Star state. Electric choice in Texas has kept rates low; particularly in recent years. A side effect, however, is that the state is having to come up with ways to get power producers to invest in new facilities in an environment where margins for the producers are very small.

New York Electricity Plant Shutting Down

Sun, 22 Jul 2012 13:19:00 -0600

Operators of a New York power plant are making preparations to mothball the 302-megawatt facility sighting wholesale electricity rates that are too low. It’s the same problem being faced by the Texas electric grid.

An important difference, however, is that Texas electricity rates are on par with the national average while New York Electricity rates are about 50% higher than the national average according to numbers published by the EIA.

“Several of the state’s coal plants have been dealing with financial troubles in recent years, including a number of facilities in western New York. An increase in generation costs and decade-long lows in wholesale natural-gas prices have hurt their ability to sell power in the markets.

The Cayuga Operating plant is the second New York coal plant in recent months to unveil plans to mothball at least part of its facility.” Full Story

New York Electricity Utility Implements Brownouts

Wed, 18 Jul 2012 15:39:00 -0600

New York electricity company Con Edison enacted more brownouts in New York on Wednesday amid the heat wave that has put pressure on much of the electricity infrastructure in the country. Unlike the rolling blackouts seen in Texas in 2011, the approach of the New York utility is to reduce voltage to Manhattan resulting in a so called “brownout.” This results in dimmer lights and other side effects, but doesn’t directly result in a loss of power for customers.

The city is currently baking in temperatures in the mid to upper 90’s, pushing electricity usage near the records the city saw last summer. For Wednesday, the company is forecasting usage of 12,455 megawatts. July of 2011 saw the city reach 13,189 MW. The company is also calling on residents to be prudent in their use of electricity; though, there are no calls to turn off air conditioners

Texas Electricity Rates 2012: Same As 2002

Thu, 05 Jul 2012 12:42:00 -0600

Texas electricity rates are unchanged in the last decade when adjusted for inflation. According to numbers provided by the Energy Information Administration (EIA), 2012 Texas electricity rates are almost exactly the same as rates in 2002 in inflation adjusted terms.

According to the EIA, the average electricity rate in Texas in 2012 (for the first quarter) was 8.72 cents per kwh. This is an average across all sectors including residential, commercial, industrial, and transportation. The rate in Q1 2002 was 6.81 cents per kwh in 2002 dollars. When adjusted for inflation using the consumer price index maintained by the Bureau of Labor Statistics this equates to 8.70 cents in today’s dollars. Over the same period the national average for electricity has risen around 8% even when adjusted for inflation.

Full Story: Texas Electricity Rates 2012: Same As 2002

See Also: Chicago Electricity Rates Are Still Too High

Energy Future Holdings, TXU, and Debt

Mon, 25 Jun 2012 10:45:00 -0600

The Fort Worth Star telegram takes a look at the ticking time bomb of debt held by Energy Future Holdings, the parent company of TXU. The problems associated with the group’s leveraged purchase of TXU several years ago have mounted for some time now.

http://www.star-telegram.com/2012/06/13/4030928/debt-bomb-ticking-at-energy-future.html

In many ways the leveraged buyout amounted to what was a massive bet on natural gas prices. This massive bet turned out to be massively wrong. Natural gas prices have plummeted along with electricity prices in Texas since 2008. TXU rates haven’t fallen as much as the rest of the electricity providers in the state. This has resulted in a migration of customers away from TXU to other providers.

TXU Asks for Permission To Break Fixed Rate Contracts With Texas Consumers

Wed, 06 Jun 2012 10:34:00 -0600

Texas electricity officials are considering raising the current cap on wholesale electricity rates that electricity providers pay. Some providers including TXU energy are setting the stage with the Texas Public Utilities Commission to be able to break fixed rate contracts with consumers in order to be able to pass along their additional costs to consumers.

Excerpt from TXU letter to the Texas PUC:

“TXU Energy believes that, as a matter of policy, the Commission could reasonably interpret P.U.C. SUBST. R. 25.475 to allow REPs to increase the price of existing fixed-rate contracts for residential or small commercial customers to the extent that the REP's actual costs increase due to an increase in the cost of wholesale power caused bythe change in the SWOC.”

See full filing here: http://interchange.puc.state.tx.us/WebApp/Interchange/Documents/37897_149_727044.PDF

Texas electricity rates will almost certainly go up as a result of the PUC move to raise whole rate caps from $3,000 per megawatt hour to $9,000.

The Truth About The TXU Free Nights Plan

Tue, 15 May 2012 19:13:00 -0600

TXU's latest electricity rate plan (marketing gimmick) is designed to grab consumer’s attention. But for most people, it’s not likely to be a money saver.

The attention grabbing headline is “TXU offers free nighttime electricity”. But the fine print will reveal that they are doing this by increasing daytime rates to 50% higher than rates offered by many of their competitors.

The day time rates for the TXU nights free plan is 12¢ per kwh for the 12-month contract. At the time of this writing, other electric providers are offering 12-month fixed rate plans for as little as 8.1¢ per kwh.

Nighttime in this plan is defined as 10PM to 6AM – a time slot where most people are sleeping and not using much electricity to begin with. In order to even make the plan a break even proposition, most people would have to change their habits considerably. You could in theory program your dryer to come on at night or run your dishwasher at midnight. People with plug-in electronic cars would almost certainly benefit from the plan. But there aren’t too many of those in Texas.