[T]he Electric Reliability Council of Texas (ERCOT) has asked consumers to scale back energy use to make up for six power-generation facilities that failed just before a hot weekend.
Most of Texas is on its own power grid, a decision made in the 1930s to keep it clear of federal regulation. This isolation means both that it avoids federal regulation and that it cannot import more electricity during periods of high demand. To keep electricity prices low, ERCOT did not prepare its equipment for freezing weather, and in February 2021 the Texas electric grid failed during a cold wave, leaving more than 3 million people without electricity or heat. Two hundred and forty-six people died, while El Paso, which is not part of ERCOT and is instead linked to a larger grid that includes other states and thus is regulated, had weatherized its equipment and its customers lost power only briefly.
The problem didn’t stop there. The then–chief executive officer of ERCOT recently testified that Texas governor Greg Abbott told ERCOT to keep the wholesale price of electricity at an astonishing $9000 per megawatt-hour (one study said this was $6,578 too high) for about three days longer than needed, thus overcharging customers by about $26.3 billion.
That money did not appear to fix the system. In June 2021, mechanical failures during a heat wave pushed the state to the verge of blackouts and prompted ERCOT to ask people to turn their AC to higher temperatures, turn off their lights, and avoid using appliances that take a lot of electricity. Now, less than a year later, the system is in trouble again.