Texas voters will get a chance to weigh in on a proposed constitutional amendment that would allow the state to loan out taxpayer money to electricity generators in a bid to bolster the state’s power grid.
Despite initially promising that the power grid would be able to meet energy demands, ERCOT has already issued a voluntary conservation notice in recognition of record energy demand and rising temperatures, as previously reported by The Dallas Express.
Texas’ electrical power is mainly produced by natural gas plants, which generate about 47% of energy in the state. Coal, wind, and nuclear power also contribute to the state’s energy production.
Aside from wind-generated power, other renewable sources of energy only produce a small amount of the state’s electricity, with solar power only generating about 1% and others such as biomass and hydropower generating less than 1%.
“As provided by general law, money in the Texas energy fund may be administered and used, without further appropriation, only by the Public Utility Commission of Texas or that commission’s successor in function to provide loans and grants to finance the construction, maintenance, and modernization of electric generating facilities,” said a joint resolution approved during the latest regular session of the Texas Legislature.
The Texas Senate also passed SB 2627, which would establish an advisory committee for the fund if the amendment is adopted.
Lt. Gov. Dan Patrick issued a statement in April following the passage of the Senate’s power grid reform package, which included support for “dispatchable” energy sources, noting that such energy generation is “essential.”
“Since Winter Storm Uri, I have been abundantly clear that we must bring new dispatchable generation (primarily new natural gas plants) online as soon as possible to make sure that Texans have reliable power under any circumstance,” said Patrick in the statement. “The Senate’s grid reform package levels the playing field between dispatchable and renewable energy sources by elevating dispatchable energy sources to put ratepayers first.”
The amendment aims to bring in entities that would expand energy production. However, some are doubtful that companies will be interested in creating new natural gas plants.
“There’s no real rate of return available for building a new natural gas-fired plant,” said Ed Hirs, energy fellow at the University of Houston, according to WFAA. “We know that it would be used less and less frequently because of the burgeoning growth in wind and solar,” he continued.
Voters will have a chance to vote on the amendment on November 7.
