How Texas’ power grid failed in 2021 — and who’s responsible for preventing a repeat.
Voters decide who’s responsible for overseeing thein Texas. The power plants that generate electricity, the wires that carry it to households, and the businesses and operators that manage it all fall under the purview of the governor. Most power plants run on natural gas, an industry that is regulated by the Texas Railroad Commission, a three-member board elected statewide.
About 60% of Texas electricity customers choose from among dozens of power retailers on an open market. Electricity producers such as Calpine and Vistra Corp. generate the power, while retailers such as Gexa Energy and Tara Energy sell it to residents and businesses. Since many power plants in Texas rely on natural gas as a fuel source, the state’s natural gas supply chain is critical to the flow of electricity.During the power grid crisis, all sources of electricity struggled during the frigid temperatures. The inability of power plants to perform in the extreme cold was the No. 1 cause of the outages last year.to parts of the natural gas supply chain when ERCOT ordered the utilities to reduce power demand or risk further damage to the grid.
The Texas Legislature in 2021 ordered electricity regulators to require power plants to better prepare for extreme weather. The Public Utility Commission has imposed some early requirements, such as requiring plants to winterize based on previous federal guidance, but lawmakers did not require the Texas Railroad Commission, which regulates the gas industry, to quickly impose weatherization standards.
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