It’s a fair statement to say the wind really blows in Texas—especially out west where I live and along the Gulf Coast, where it seems to never end. It’s also true that the ongoing economic vitality of the state can only be realized if infrastructure improvements keep pace.
Recent decisions by the Public Utility Commission of Texas (PUC) and announcements by various private entities are certainly steps in the right direction, helping ensure the future strength of the state’s economy.
A growing population and economy have contributed to expansion in the need for electric power in Texas. Virtually all of the new capacity built in the past few years has been in the form of natural gas-fired generation plants. In today’s market, high prices for natural gas and the state’s reliance on that fuel for electric power have combined to cause Texas consumers to pay some of the highest prices for electricity in the US despite the advantages of a competitive market.
As the need for power continues to grow, the state’s electric generation and transmission capacity must expand to ensure sufficient power is available for residential, commercial, and industrial use in the future. Moreover, this increase needs to occur within the context of high demand in urban centers with substantial environmental limits on the ability to accommodate large-scale generation projects. Ideally, new capacity would also help diversify the mix of input fuels used in the state.
In light of these issues, the PUC gave preliminary approval on July 17 to a plan to spend some $4.9 billion to ramp up the state’s power grid by adding a massive system of transmission lines connecting wind farms in West Texas and the Panhandle to power-hungry cities in the eastern part of the state. The additional 2,000 miles of transmission lines will enable the Texas economy to reap substantial rewards in the future from this renewable energy source. Transmission line construction projects now being considered by individual companies and private consortiums will also prove invaluable in making this objective a reality.
Not only is wind energy highly desirable as a mechanism to meet some of the emerging power requirements, but the construction, operation, maintenance, and royalty payments associated with the turbines and transmission lines also serve as crucial sources of business activity for rural areas. They create new jobs, reduce pollution, and lower overall energy costs. They also help protect the environment and conserve natural resources. Colleges in the windy parts of Texas are even starting training programs in this emerging technology.
The PUC plan is the biggest investment in clean and renewable energy in the history of our nation. The development of the new heavy-duty transmission lines marks the beginning of a process that eventually will increase the state’s wind transmission capacity to some 18,456 megawatts of power. Since one megawatt can power up to 500 homes under normal conditions, this amount will be capable of providing electricity to nearly 4 million residents in metropolitan areas such as Austin, Dallas, Fort Worth, and Houston, as well as other places.
Texas is already the national leader in wind-produced power, and for three consecutive years has increased its capacity more than any other state—around 57% in 2007. However, the lack of transmission lines, as well as congestion in many areas in West Texas, prohibits some of this electricity from being used to its full potential.
While the cost of these wind-power enhancements will be borne by energy customers ($3 to $4 more per month on bills), anticipated reductions in rates will likely offset the increases. The Electric Reliability Council of Texas (ERCOT) estimated that the investment could cut wholesale power costs by $3.4 billion per year.
Over the past decade, the Texas economy has begun to benefit from wind-produced electricity. In the decades to come, wind energy stands to become even more important. Recent steps taken by the PUC and various private operators are worthy of support as they will help secure the power required for anticipated growth in the population and business activity.