Tag Archives: Texas Legislature

If You Thought It Couldn’t Get Any Crazier, Think Again!

By Bill Oakey – March 28, 2021

The U.S. Congress took up their investigation of the Texas power blackout last week. And the bumbling, bungling shenanigans of Texas officialdom went on full display. When you read the editorial below, ask yourself this question – If you owned a large Texas business, would you hire any of the numbskulls from ERCOT, or the political hacks that interact with or pretend to oversee them? The gang that couldn’t shoot straight was called upon the carpet in Washington. Here’s what happened…

Editorial – The Houston Chronicle

By the Editorial Board, March 28, 2021

Texas leaders, get tough on grid security

Human mistakes shut off the electricity. Now the humans in charge must do their jobs.

It wasn’t the wind turbines. It wasn’t natural gas. It wasn’t coal that was to blame in the blackout that killed 111 people across Texas.

The truth is all those power sources went offline at some point during last month’s winter storm, not because they were “renewable” or “base load” or “liberal” or “conservative” fuels but because generators and pipeline owners chose not to weatherize their equipment for a predictable winter storm. Some gas operators chose not to fill out a simple two-page form to exempt their operations from losing power during rolling blackouts and other shortages.

They chose not to do these things because nobody in Texas government required them to.

Let’s stop wasting time, as U.S. House members did in a hearing last week, bickering over which political party’s preferred natural resource saved the day and which caused death and destruction.

The culprit was not vegetable or mineral. It was human.

It was the people in Texas government who had the duty to secure Texas’ power grid and refused. The people who had the power to protect millions of Texans from an accident waiting to happen and opted to just let it happen. The people who chose not to require that companies delivering life-sustaining energy do so responsibly, opting instead to make basic emergency planning optional.

It is elected officials, political appointees, and well-compensated executives who, more than a month after the catastrophic failure of Texas’ power grid, refuse to take true responsibility or move with urgency to fix the problems.

The shameful show of finger-pointing and shallow concern hit the national stage Wednesday as several Texas officials testified before Congress on the impact and causes of February’s storm.

One moment served as a glaring allegory of Texas deflection: Railroad Commission Chairman Christi Craddick was asked whether she, as the state’s top oil and gas regulator, would start requiring operators to fill out a short form that keeps their power from being shut off during outages.

The question by U.S. Rep. Marc Veasey should have been a no-brainer. Craddick herself had testified that in the middle of the blackouts, crews returning to gas fields found they couldn’t restart production because they’d lost power for their equipment.

“Frozen roadways prevented crews from going out, but the No. 1 problem was a lack of power at the production sites,” she said.

That problem, as Houston Chronicle reporters Jay Root, Eric Dexheimer and Jeremy Blackman reported this month, was the result of gas production plant owners not filling out simple paperwork to become designated as “critical facilities,” making them exempt as hospitals are from having their power cut so they can keep supplying fuel to power plants.

Even so, Craddick wouldn’t commit to requiring the form, only saying that her agency had sent letters to all operators “suggesting” that they file it. She also insisted that she hadn’t “realized this form existed” before the winter storm and that power grid operator ERCOT should have done a better job getting the word out about the exemptions. Never mind that her name was on the letterhead of a 2013 Railroad Commission memo explaining the exemptions and urging natural gas facilities to apply.

“But do you don’t think it should be required?” Veasey pushed back.

Craddick continued to dodge the question, pivoting again to her favorite punching bag. She blamed ERCOT for not prioritizing oil fields for such exemptions, and tried to claim they only were available to processing plants anyway. While the 2013 letter uses the term “facilities,” it also states clearly that “high volume gas wells are examples of such facilities.”

Letting industry police itself is a basic tenant in Texas’ laissez-faire approach to oversight. But while expense may be behind Craddick’s previous refusal to require winterization of natural gas wellheads, it’s unclear what kind of burden she thinks filling out a free form that takes about two minutes to complete would impose on companies.

Veasey wasn’t having Craddick’s excuses.

“Republicans just want this problem to go away,” he said. “They don’t want to deal with this, they don’t want to require anybody to do anything, which means we’re going to be sitting in the cold again and that is the problem. They are running out the clock.”

Coming from a Democrat, that may sound like partisan rhetoric — except for the fact that the complacency and political cowardice he describes has all happened before. It set the stage for February’s disaster. And it will lead to another tragedy unless lawmakers resolve to finally act this session.

Just as Gov. Greg Abbott and lawmakers knew Texas’ grid was vulnerable in winter without proper weatherization, Texas oil and gas regulators knew that gas suppliers had their power cut during the state’s last major freeze in 2011. A federal after-incident report had warned that communication gaps between gas and electric companies should be fixed to prevent it from happening again.

A state report in 2012 said the same thing, with regulators at the Texas Public Utility Commission and Railroad Commission concluding that “cascading” grid failures could happen if companies that provide fuel for power generation lost power themselves. That’s exactly what happened in February.

The former PUC regulator who oversaw that 2012 report, Jennifer Hubbs, told Chronicle reporters she was shocked to realize during the storm that her simple recommendations hadn’t been followed.

“I’m on Twitter and I see a photo of downtown Houston lit up like a freakin’ Christmas tree and all the houses around it dark. It hit me like a physical blow,” she told the Chronicle. “You know, we might have avoided rotating outages entirely if we had just approached it with some sense.”

Sense. It’s something as scarce in Austin these days as toilet-flushing water during last month’s storm.

It is not government overreach or far-left sabotage to require energy companies to engage in basic emergency planning. It’s the least a government can do to protect its residents from a harsh winter storm or even an attack on our power grid from a foreign adversary such as Russia or China.

Abbott needs to lean on lawmakers to require safeguards, lawmakers need to pass them, and elected leaders such as Craddick need to stop leaving Texans’ health and safety to chance and voluntary compliance.

Why should Texans put up with leaders whose loose regulations leave us vulnerable to everything from random chemical explosions to prolonged blackouts that put our homes, our businesses and our loved ones in harm’s way?

Leaders, do your jobs, not industry’s bidding. Texans don’t deserve to live this way — or die this way, either.

———————————————————————————–
My Recommendation: The Legislature should make sure that the form is easily accessible. Right now, once an entity submits it, they are permanently registered. If their status changes, or if they are new to the system, they need to submit an updated form. I recommend that the Legislature set an annual fall deadline to submit the form. Failure to do so should be greeted with a stiff fine. Here’s what’s so crazy – It’s in a company’s best interest to submit the form. They’ll sell more gas during the power outage (!) If the right hand is unable to help the left hand, perhaps either Alexa or Siri could help with a friendly reminder..

Get Your Wooden Nickels Ready – Here Comes the Jukebox!

1. “All Right, I’ll Sign the Papers” – Mel Tillis
2. “I’ve Always Been Crazy” – Waylon Jennings
3. “Still Crazy After All These Years” – Paul Simon
4. “No Place But Texas” – Willie Nelson
5. “Texas In My Rear View Mirror” – Mac Davis

State Needs To Resolve ERCOT Billing Kerfuffle

By Bill Oakey – March 17,  2021

Almost every day, news reports pop up with a different twist on the confusing numbers. How much did ERCOT really overcharge Texas electric utilities? First, we heard the staggering figure of $16 billion. This amount came from Potomac Economics, who monitors ERCOT’s market functions. As I noted previously, $16 billion works out to roughly $552.00 for every man, woman and child in Texas.

Before the ink was even dry on the newsprint, you could hear the whimpers and the hollers. City officials squawked, utility companies balked. Suddenly, that $16 billion figure began to morph into something much smaller. All sorts of numbers were tossed around. If you mix hard numbers with politics and powerful special interests, they become soft and squishy. Like something you would not like to feel between your toes, while stepping through a cow pasture.

Let’s Make Our Way Through the ERCOT Shuffle

Everybody pick a partner and form a circle. But please stay 6 feet apart, and keep your masks on.

1. We are told that ERCOT overcharged customers by $16 billion – after the storm was over.(Shuffle to the left and swing your arms around. Keep the circle moving clockwise).

2. The Public Utility Commission doesn’t initially deny the number, but refuses to order ERCOT to fix the errors – It would only create winners and losers. It’s too hard to “unscramble the egg.” (Shuffle to the right, take two steps, and kick your left foot forward).

3. Lt. Gov. Dan Patrick calls on ERCOT to repay the $16 billion, plus additional overcharges billed above the approved maximum rate. He cites RRCOT’s own regulations. (Clap your hands and wiggle your hips. Then continue shuffling clockwise).

4. ERCOT’s monitor announces that only $5.1 billion needs to be refunded to consumers – later revised again to $4.something billion. The rest has already been settled with large providers. The PUC Chair claims that the remaining amount is not really an error, and blames it on a formula. (Shuffle sideways to the other side of the circle, and choose a new partner).

5. The PUC Chair tells the Lt. Gov. and a Senate committee that it would be illegal to change any of ERCOT’s billings, and stands by his assertion that the overcharges were not errors. (Face the center of the circle. Turn your backsides outward, and bend forward to your waist).

6. The Texas Senate votes in record time to order that the overcharges be repaid. But the House leadership slams on the brakes and hesitates. Big business leaders urge the State not to “meddle” with prices that were previously set. That translates to “We’re happy with the winners. To hell with the losers.” (That’s all the time for dancin, folks. Now, y’all come back and see us real soon, ya hear?)

The Drama Will Shift to the Courtroom

Regardless of what the State does, this big mess is headed for months, and possibly years of litigation. The cities of San Antonio and Denton have filed lawsuits, along with multiple private utilities. The Legislature should take some action soon to clarify the whole confusing situation. Somebody besides a court judge should tell us whether the big “settled” chunk of the $16 billion was settled accurately and fairly.

Of course, they should order ERCOT to pay back the remaining overcharges. Failing that, they could ask ERCOT’s independent monitor to assist in identifying who now has the unsettled money that was collected in error. Then, the State should pass legislation to retrieve that money and place it in an escrow account. That way, the courts will know that the money is really available to award to the parties that win the various lawsuits.

Will the Public Ever Have Confidence In Such a Crazy, Convoluted System?

Probably not, unless our State leadership is willing to ensure that we are given all the facts. They also need to establish clear guidelines on how ERCOT handles electricity pricing going forward. We are just one polar vortex away from another severe winter storm. But just leaving ERCOT to continue legalized price gouging is not a workable solution. The February storm and exorbitant pricing caused extraordinary financial harm to cities, businesses and citizens throughout the state. We need a whole new electricity pricing model that better reflects the actual cost of delivering the power, with nothing more than a reasonable amount of profit.

Blog Music Special Edition – Songs for the ERCOT Shuffle:

1. “Put Your Little Foot Right There” – Lawrence Welk
2. “It’s a Cowboy Lovin’ Night” – Tanya Tucker
3. “Dance In Circles” – Tim Ryan
4. “Copper Canyon” – Lisa Kirk
5. Do-Si-Do and Face the Sides – Square dance lesson
6. “Changing Partners” – Patti Page
7. “The Winner” – Bobby Bare
8. “Born to Lose” – Ray Charles