| MustReadTexas.com – @MustReadTexas
BY: @MattMackowiak | Subscribe to the daily email here | | TUESDAY || 1/28/25 | | Good Tuesday mid day.
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> Become a PAID subscriber for $5/mo or $50/yr here. | | | “Texas grid needs transmission for crypto, data centers, oil and gas,” Houston Chronicle's Claire Hao — “In the midst of a population and economic boom, Texas is outgrowing its aging power grid and needs 3,000 miles of new lines to meet an unprecedented increase in electricity demand, the Electric Reliability Council of Texas, the state’s grid operator, concluded in a new report.
That’s longer than a cross-country drive, according to Google Maps. Similar to adding new roads to accommodate more cars, ERCOT said the new power lines are essential to deliver more electricity.
If implemented, ERCOT’s plan would be the largest build-out of transmission since Texas completed the Competitive Renewable Energy Zone initiative in 2013 with former Gov. Rick Perry’s backing. CREZ, designed to deliver electricity from West Texas wind farms to major population hubs, was considered one of the largest infrastructure project’s in the state’s history.
This time around, Texas must build transmission lines largely to support electrification within the oil and gas industry and to host more power-intensive cryptocurrency mines and data centers, the latter of which have proliferated as technology companies race to develop artificial intelligence, according to ERCOT’s analyses.
“We are one of the few states that are growing in all sectors, whether it's residential, commercial or industrial, so making sure that we have the capacity to move electricity from generation-side to demand-side is really important,” said Mark Bell, president of the Association of Electric Companies of Texas, an industry trade group. | » BECOME A PAID SUBSCRIBER: $7/mo | Building this much transmission and making necessary upgrades could cost between $30.8 billion and $33 billion, ERCOT estimated in its recent report, fueling concerns within the electric power industry that residential consumers could see significant rate increases for this infrastructure. Lawmakers say they will reform how transmission costs are allocated in the ongoing legislative session.
By 2030, Texas could need nearly 80% more electricity during times of peak usage, ERCOT revealed in April. Though there’s doubt on whether all the data centers, cryptocurrency mines and hydrogen projects applying to connect to the grid will actually be built, the projection still signaled “unprecedented” growth is coming, ERCOT CEO Pablo Vegas said. | » BECOME A PAID SUBSCRIBER: $70/yr | The lack of transmission capacity could pose a key constraint on ERCOT’s ability to meet that demand, Vegas told the grid operator’s board in April as he proclaimed “a new era of planning” for the organization. That’s because it takes approximately three to six years to build new transmission lines, compared to six to 12 months to add new power demand or supply to the grid, he said.
Lack of adequate transmission lines can create “congestion” of electrons on the grid, similar to traffic clogging up a highway. That makes it more difficult for low-cost electricity to travel to certain regions such as Houston, adding to electricity costs.
This congestion can also increase the risk of rolling outages, as available lines can become overloaded. Indeed, a recurring South Texas grid chokepoint played a large part in ERCOT triggering a grid emergency in September 2023, the first since the notorious 2021 freeze.
Under the Biden administration, clean energy advocates were often the biggest supporters of more transmission lines to unlock the potential for more wind and solar power.
But in Texas, oil and gas producers have been clamoring for more transmission lines for years so they can connect to the grid too. That’s because they want to make their operations more efficient, reduce fuel costs and cut climate-warming emissions.
By 2038, the Permian Basin alone could add 26 gigawatts of electricity demand, nearly a third of the Texas grid’s entire summer demand currently, according to ERCOT. Oil and gas electrification accounts for more than 14 gigawatts of that, ERCOT said.
The Texas Legislature passed a law in 2023 requiring the Public Utility Commission of Texas, the state agency regulating the grid, to direct ERCOT to study transmission needs in the Permian Basin. The grid operator released its final report in July, with the PUC approving $13 billion to $15 billion in estimated investments in September.
Lori Cobos, the former PUC commissioner in charge of the effort, called the approval “a monumental and historic transmission buildout” in a September statement.
“The Permian Basin is the heartbeat of our state and nation’s energy dominance and economy. This plan is a roadmap that will ensure electric reliability in the region for decades to come,” she said.
The Texas Oil and Gas Association said in a September statement that the plan addressed the industry’s concerns that grid infrastructure hasn’t kept pace with their growth.
Lawmakers and regulators have been much more skeptical of the cryptocurrency mining and data center industries, which also want more transmission lines to connect their operations to the Texas grid.
Data centers and cryptocurrency mines house banks of computers. Data centers store data from online activities and increasingly run calculations necessary for artificial intelligence. Crypto mines solve complex math equations to earn cryptocurrency as a reward.
Both types of facilities use lots of electricity to run these computers and to prevent the equipment from overheating. Some of the larger ones consume as much electricity as a medium-sized power plant, according to data from the Department of Energy.
Lee Bratcher, president of the Texas Blockchain Council, an industry trade group, has long maintained that cryptocurrency mining doesn’t risk grid stability. That’s because companies typically ramp down operations when electricity prices are high and it’s uneconomic to mine crypto, which reduces grid strain, he said.
“There's never been an energy consumer that is as price sensitive as a bitcoin miner,” Bratcher said.
Dan Diorio, senior director of state policy with the Data Center Coalition, another industry trade group, highlighted the national security benefits of hosting American data inside the country. Texas could also reap billions in investments related to the development of artificial intelligence, he said.
“We continue to see emphasis on the United States becoming a leader in digital infrastructure in order to maintain global competitiveness. Texas is on the forefront of that,” Diorio said." Houston Chronicle ($) | | FREE SUBSCRIPTIONS HAVE ENDED: As of July 11, 2022, we have moved to a paywall for free subscribers. Free subscribers will only receive the top story in their morning email. Free subscribers will need to become paid subscribers to receive full story summaries. | | | HOU CHRON: “Port Houston gets $25M to develop a Bayport hydrogen refuel station” Houston Chronicle ($) | DMN: “Crash shuts down multiple lanes on I-30 in Fort Worth, snarling Tuesday commuter traffic” DMN ($) | HOU CHRON: “Texas A&M students ignite off-campus bonfire months after UT game” Houston Chronicle ($) | | | TX TRIB: “Lubbock celebrates native Dustin Burrows' rise to Texas House speaker” Texas Tribune | | | SAEN: Glenn Hegar guest column: “Texas is in a great spot financially” SAEN ($)
HOU CHRON: “How a top Texas lottery official helped investors win a $95M jackpot” Houston Chronicle ($) | | | VOTEBEAT / TX TRIB: “Texas counties left scrambling after critical election equipment loses its certification” Texas Tribune | | | DMN: “Dallas City Council member Carolyn King Arnold ruled ineligible for 2025 election” DMN | | | > TX TRIB: "Texas Republicans in Congress propose bills to codify Trump executive orders" TX TRIB
> AP: "Accident or homicide? Medical rulings in arrest-related deaths can dictate what happens to police" AP
> AP: "What has changed with immigration under Trump and what is still playing out?" AP
> TX MONTHLY: "A Flesh-Eating Worm Is Crawling Toward Texas. Can a Pause on Cattle Imports Keep it at Bay?" TX MONTHLY
> FWST: "12-year-old calls 911 after mom leaves to grab a package and never returns, TX cops say" FWST
> HOU CHRON: "Harris County tried to place hold on Jan. 6 arrestee days before pardon, release" HOU CHRON
> AP: "As data centers proliferate, conflict with local communities follows" AP
> HOU CHRON: "How a top Texas lottery official helped investors win a $95 million jackpot" HOU CHRON
> TX TRIB: "Texas counties left scrambling after critical election equipment loses its certification" TX TRIB
> DMN: "Texas Gov. Greg Abbott sends soldiers to southern border" DMN
> DMN: "Fort Worth-based Dr. Phil embeds with immigration raids in Chicago" DMN
> HOU CHRON: "Abbott to unveil his legislative priorities on Sunday" HOU CHRON
> AP: "Alabama profits off prisoners who work at McDonald’s but deems them too dangerous for parole" AP
> FWST: "Shooting victim dropped off at a Fort Worth hospital emergency room dies, police say" FWST
> FWST: "One dead in apparent road rage shooting, crash on Loop 820 Monday in east Fort Worth" FWST
> DMN: "‘One of the hottest brands in fashion’ is coming to Highland Park" DMN
> FWST: "Man shot at northwest Fort Worth Walmart taken to a hospital, authorities say" FWST
> FWST: "Isolated hail, severe storms in the mix for Fort Worth. Here’s when the weather will hit" FWST
> FWST: "Vigilant mom helps catch man luring boys with Fortnite, Discord, Arizona officials say" FWST
> HOU CHRON: "Amen Thompson and Dillon Brooks propel Rockets past Celtics" HOU CHRON
> SAEN: "'Supply squeeze': Texas GOP takes aim at batteries, renewables this session" SAEN
> HOU CHRON: "Rumors swirl after 'immigration operation' across Houston region" HOU CHRON
> TPR: "Gov. Greg Abbott deploys 400 soldiers to Texas border in support of Trump immigration policies" TPR
> DMN: "18-year-old killed in southeast Oak Cliff shooting, Dallas police say" DMN | | | Last night's Texas sports score:
> NBA: Houston 114, Boston 112
> NBA: Dallas 130, Washington 108
> NCAAM: Houston Christian at SE Louisiana
> NCAAM: Nicholls 82, UT-RGV 75
> NCAAM: Lamar 69, Northwestern State 59
> NCAAM: Incarnate Word 74, New Orleans 58
> NCAAM: McNeese 74, Texas A&M-Corpus Christi 73
> NCAAM: Texas Southern 80, Alabama State 69
> NCAAM: Stephen F. Austin 79, East Texas A&M 72
> NCAAM: Alabama A&M 98, Prairie View A&M 82
> NCAAM: Houston Christian 70, SE Louisiana 62
Tonight's Texas sports schedule:
> 6pm: NCAAM: Rice at South Florida (ESPNU)
> 6:30pm: NBA: Houston at Atlanta
> 8pm: NCAAM: Oklahoma at #13 Texas A&M (SEC Network)
> 8pm: NCAAM: Baylor at BYU (ESPN2)
> 9pm: NHL: Dallas at Las Vegas (ESPN+)
DALLAS COWBOYS: "Cowboys praise Brian Schottenheimer's fit as team welcomes new leader" DMN ($)
DALLAS COWBOYS: "Brian Schottenheimer will call plays as Dallas Cowboys head coach" DMN ($)
HOUSTON TEXANS: "Houston Texans interview first two candidates for offensive coordinator position" Houston Chronicle ($)
HOUSTON TEXANS: "Houston Texans hire Mike Tomon as new team president, replacing Greg Grissom" Houston Chronicle ($)
DALLAS MAVERICKS: "Mavs' win highlighted Thompson's record night, feel-good debut" DMN ($)
HOUSTON ROCKETS: "What Rockets' Amen Thompson, Dillon Brooks said after Celtics win" Houston Chronicle ($)
TEXAS RANGERS: "Texas Rangers announce Rangers Sports Network, with major cable deals expected soon" DMN ($)
UT ATHLETICS: "Texas athletics set school records for revenue, expenses in 2024. Here's why" AAS ($) | |
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