2009 Texas Energy Wrap-up And A Look Forward

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The pace of American life has accelerated much more quickly in the twenty-first century than it did in the twentieth. The swiftness with which things change is particularly interesting in the field of electricity and energy policy. There is a near universal emphasis on immediate development of green alternative energy sources. This is balanced by the consumers necessity to decrease energy bills while keeping the lights on. (Of course, the most important thing is keeping the television on!) Here is some information on the state of the 2009 Texas energy market and what the experts think about its future.

As a result of a number of factors, 2009 was an interesting year for Texas electricity. Thanks to increased efficiency, belt-tightening during the current recession and milder weather in some locations, demand for electricity increased only 0.1% between 2008 and 2009. The Electric Reliability Council of Texas is the agency charged with the responsibility of operating the energy grid of the Lone Star State. Theyre the people who make sure that energy providers have the capacity necessary to power industrial and residential ...
... customers. They claim that, in the year 2008 (through November), Texas consumers needed 62,174 megawatts of electricity. During that same period in 2009, that figure rose slightly to 63,400 megawatts. (Interestingly, through the heat of August 2009, Texas customers used 2.3% less energy than they had the year before.) Those summer loads will be a future concern. According to an ERCOT report, power resources will remain steady through the upcoming half-decade, while demand will increase steadily.

As Jack Z. Smith points out in a column for the Fort Worth Star-Telegram, ERCOT estimates that the Texas power grid should be able to meet demand until at least 2013. There are, thankfully, new plants being built and plants that are currently not in use that could be used to provide everyone with the juice they need.

The biggest change, Smith notes, is ERCOTs plan to increase the number of miles of power transmission lines in the grid. As the population of the second-biggest state in the union continues to grow, more places further from large cities need to be connected to the electric grid. The population of Texas continues to grow, thanks to immigration and other factors. This increase has been large, even in the past ten years. The United States Census Bureau estimated there were 20.85 million people in Texas. That number in 2008 (the last year on record) was 24.3 million people, all of whom need to live in a dwelling equipped with electricity. To save you some long division, the Census Bureau estimate represents a 16.7% increase, double the national population increase.

The 5,729 miles of additional transmission capacity will also make it easier for Texas consumers to take advantage of alternative energy sources, such as the wind farms that are and will be located in less-populated areas of the state. Unfortunately, this added capacity comes with a multi-billion-dollar cost. As Elizabeth Souder claims in her blog for the Dallas Morning News, each mile of added transmission capacity costs between 1 million and 2 million dollars to install. The cost reaches the higher range when lines must be strung in awkward places, such as canyons and around sites that are protected for their environmental or cultural needs. (The latter classification would include Native American burial sites and others.)

Unfortunately, the news is not completely rosy. In another article, Souder analyzes ERCOTs present power generation capacity and finds that things might get tight in 2015 or 2016. ERCOT tries to ensure there is a cushion of approximately 13%. This allows the grid to respond to unforeseen spikes in demand and other fluctuations. That buffer will be eliminated if Texas energy companies dont build more plants and expand capacity.

Thankfully, because these concerns have been brought to light, multiple companies and governmental agencies will be solving them as the years go by. The one reliable constant in the Texas energy market is change. By 2016, wind and solar power generated in Texas will play a big role in the states progress toward energy independence. More fuel-efficient automobiles could decrease some of the demand for petroleum. Best of all, Texas energy consumers will continue to see enhanced reliability and service as a result of these efforts from public and private agencies.