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Texas' energy future is at risk

  • Sep 21, 2022
El Dorado News-Times

The nature of the problem is fairly simple: There are more of us in Texas than there ever were before, and just about every one of us is using more electricity to power our lives. Fixing it is not simple. And the steps that legislators and energy leaders will have to take to stabilize our energy present and expand our energy future are about as serious as decisions get in public policy. We are ...

Robert Borlick's picture
Robert Borlick on Sep 23, 2022

Intermittent resources impose a cost on the power system in that three is an increased need for regulation service, I.e., generators or flexible loads that can compensate for the minute to minute mismatches in load and generation.  The resources providing regulation service are competitively procured and paid in a market separate from the energy market.  gas-fired generators providing regulation service receive additional revenues contributing to their financial viability. 

It is both efficient and equitable for intermittent resources to be billed for these payments, along with highly variable loads ( e.g., steel producers with electric arc furnaces).  The well accepted principle of cost causality supports this compensation scheme.

Australia adopted such a  compensation scheme in the mid- 1990s.  It is time for the US to do so as well.  

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