The 89th Session of the Texas Legislature adjourned on June 2 after 140 days. As with every biennium, there were both good and not-so-good elements of the outcome. Considerable progress was made in dealing with a number of challenges facing the state, including, among others, public school finance and teacher pay (though much remains to be done), water supplies, rural health care, wildfire preparation, and the current topic of electric power supplies and the stability of the grid. Amongst the usual sound and fury, there were clear steps in the right direction.

The Electric Reliability Council of Texas (ERCOT) is the grid operator charged with ensuring reliable electric service for 90% of the state and is overseen by the Public Utility Commission of Texas and the Texas Legislature. More than 27 million customers are served by ERCOT, with only a few geographic areas being excluded.

Ensuring the adequacy of the state's grid and power supply is a major challenge. Texas has been growing rapidly, both in terms of population and the economy, and there is reason to believe that pattern will continue. We are also adding firms and facilities in a variety of power-intensive industries.

Key legislation was passed which encourages more efficient use of power. An additional $5 billion went into the Texas Energy Fund to be used for low-interest loans to incentivize the development of additional dispatchable (natural gas fired) capacity and improve backup power at facilities essential to health and safety. A better process for accommodating new large load consumers will help in allocating transmission costs and assist with reliability. There is also funding for the development of nuclear energy.

Nuclear reactors can be an important generation source in the future power complex, particularly given that it is not only clean burning, but also not subject to wind or sun or the availability of rare earth minerals. The technology has advanced considerably, with numerous safety enhancements and scaled-down, factory-assembled reactors which allow deployment specifically where power is needed. Although there are certainly risks which must be safeguarded against, appropriate mechanisms are available.

I have said for decades that meeting future energy needs will require an "all of the above" approach. We need additional generation capacity that isn't intermittent, and new laws support its development. Texas is also adding renewables at a strong pace, and they will be another vital part of the answer. There were initiatives to curtail such development proposed, but they did not survive the process.

No matter what the state has going for it (and we have a lot!), growth will stall if there isn't adequate reliable and affordable electric power. New legislation will help keep the momentum alive. That's progress. Stay safe!