Lawmakers scramble to make sure more natural gas power plants are built for the Texas grid

Lawmakers scramble to attract new natural gas power plants for the Texas power grid

Texas Senators scrambled this week in an effort to make sure more natural gas-fired power plants are built to meet the state's growing demand for electricity. 

It happened as some in the industry and at the Capitol told CBS News Texas this week that Senate Bill 6, a priority bill, is stalled in the Texas House.

On Monday, State Senator Charles Schwertner, R-Bryan, filed a new bill, Senate Bill 2627, weeks past the filing deadline. On Tuesday, he explained the bill to the Business and Commerce Committee, which he Chairs. "We're willing to put resources, taxpayer dollars, citizen dollars to where we think there is a critical life and health and safety and obviously economic need." 

The committee passed the bill.

Then Thursday, the full Senate debated the legislation and passed it 27-4. Under SB 2627 the state would spend up to $10 billion. It would offer companies 0% loans for a 20-year period to build new natural gas-fired power plants. The state would also pay a bonus to companies if their plants became operational by December 31, 2026. In addition, the state would also offer 0% loans to companies to keep their older power plants online for five years, instead of closing them.

In the Senate chamber Thursday, Lt. Governor Dan Patrick praised the bill and Schwertner. "Thank you for your quick work on this. This came out of a lot of discussions, meetings with many in the industry and we all know we need power as soon as we can get it. These incentives of using surplus money are the best way to get people to build the fastest."

This bill now heads to the Texas House where it will be discussed in committee and possibly the full House for a vote. The regular legislative session ends Memorial Day weekend. 

Lawmakers are also considering a number of other bills this session that are aimed at making the power grid more reliable.

Nearly two months after Lt. Governor and Senators announced a number of bills, including SB 6, during a news conference on March 9, they reiterated the need for Texas to construct more natural gas-fired power plants to enhance the grid's dependability.

Patrick stated that in 2000, only two percent of the grid was powered by renewable energy like wind and solar, but now, it's close to 50 percent. Schwertner said that Senate Bill 6 guarantees that the Texas grid will have more power. 

SB 6, which could cost as much as $10 billion, would require the state to pay a company to build new natural gas-fired power plants that operate solely during emergencies.  The state would also ensure the company a profit.

But legislative records show there was opposition to the bill by industry groups. 

A Wall Street Journal editorial criticized the legislation saying it would distort the market in Texas. Other experts told CBS News Texas it could lead to fewer companies building new natural gas power plants in the long run.

The Senate passed SB 2627 one day after the Public Utility Commission raised new concerns about the reliability of the Texas power grid. 

On Wednesday, the PUC said the state will rely more on electricity generated by the wind and the sun than ever before.  Renewable energy sources may fluxuate, but experts say they have kept energy prices low in Texas. The Chair of the PUC, Peter Lake, told a news conference, "We will continue to use every tool available to keep the lights on, and the AC's running this summer." 

The Commission did say that chances remain very small that ERCOT would get into an emergency situation with the potential of widespread power outages.

Read more
f

We and our partners use cookies to understand how you use our site, improve your experience and serve you personalized content and advertising. Read about how we use cookies in our cookie policy and how you can control them by clicking Manage Settings. By continuing to use this site, you accept these cookies.