Texans may still wonder whether the grid will keep them safe during a severe winter storm. Courtesy photo

Houstonians may feel anxious as the city and state experience freezing temperatures this winter. Every year since 2021’s Winter Storm Uri, Texans wonder whether the grid will keep them safe in the face of another. The record-breaking cold temperatures of Uri exposed a crucial vulnerability in the state’s power and water infrastructure.

According to ERCOT’s 6-day supply and demand forecast from January 3, 2025, it expected plenty of generation capacity to meet the needs of Texans during the most recent period of colder weather. So why did the grid fail so spectacularly in 2021?

  1. Demand for electricity surged as millions of people tried to heat their homes.
  2. ERCOT was simply not prepared despite previous winter storms of similar intensity to offer lessons in similarities.
  3. The state was highly dependent on un-winterized natural gas power plants for electricity.
  4. The Texas grid is isolated from other states.
  5. Failures of communication and coordination between ERCOT, state officials, utility companies, gas suppliers, electricity providers, and power plants contributed to the devastating outages.

The domino effect resulted in power outages for millions of Texans, the deaths of hundreds of Texans, billions of dollars in damages, with some households going nearly a week without heat, power, and water. This catastrophe highlighted the need for swift and sweeping upgrades and protections against future extreme weather events.

Texas State Legislature Responds

Texas lawmakers proactively introduced and passed legislation aimed at upgrading the state’s power infrastructure and preventing repeated failures within weeks of the storm. Senate Bill 3 (SB3) measures included:

  • Requirements to weatherize gas supply chain and pipeline facilities that sell electric energy within ERCOT.
  • The ability to impose penalties of up to $1 million for violation of these requirements.
  • Requirement for ERCOT to procure new power sources to ensure grid reliability during extreme heat and extreme cold.
  • Designation of specific natural gas facilities that are critical for power delivery during energy emergencies.
  • Development of an alert system that is to be activated when supply may not be able to meet demand.
  • Requirement for the Public Utility Commission of Texas, or PUCT, to establish an emergency wholesale electricity pricing program.

Texas Weatherization by Natural Gas Plants

In a Railroad Commission of Texas document published May 2024 and geared to gas supply chain and pipeline facilities, dozens of solutions were outlined with weatherization best practices and approaches in an effort to prevent another climate-affected crisis from severe winter weather.

Some solutions included:

  • Installation of insulation on critical components of a facility.
  • Construction of permanent or temporary windbreaks, housing, or barriers around critical equipment to reduce the impact of windchill.
  • Guidelines for the removal of ice and snow from critical equipment.
  • Instructions for the use of temporary heat systems on localized freezing problems like heating blankets, catalytic heaters, or fuel line heaters.

According to Daniel Cohan, professor of environmental engineering at Rice University, power plants across Texas have installed hundreds of millions of dollars worth of weatherization upgrades to their facilities. In ERCOT’s January 2022 winterization report, it stated that 321 out of 324 electricity generation units and transmission facilities fully passed the new regulations.

Is the Texas Grid Adequately Winterized?

Utilities, power generators, ERCOT, and the PUCT have all made changes to their operations and facilities since 2021 to be better prepared for extreme winter weather. Are these changes enough? Has the Texas grid officially been winterized?

This season, as winter weather tests Texans, residents may potentially experience localized outages. When tree branches cannot support the weight of the ice, they can snap and knock out power lines to neighborhoods across the state. In the instance of a downed power line, we must rely on regional utilities to act quickly to restore power.

The specific legislation enacted by the Texas state government in response to the 2021 disaster addressed to the relevant parties ensures that they have done their part to winterize the Texas grid.

---

Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

If we want to see real change, we need action by all parties. Photo via Getty Images

Texas vs the nation: Comparing energy grid resilience across America

guest column

The 2024 Atlantic hurricane season has proven disastrous for the United States. On July 8th, Hurricane Beryl barreled into Texas as a Category 1 storm knocking out power for nearly 3 million, causing over $2.5 billion in damages, and resulting in the deaths of at least 42 people.

More recently, Hurricanes Helene and Milton tore through the East Coast, dropping trillions of gallons of rain on Florida, Georgia, South Carolina, North Carolina, Virginia, and Tennessee, causing dams to collapse, flash flooding, trees to fall, millions of power outages, complete destruction of homes and businesses, and the deaths of hundreds.

Amidst the horror and rescue efforts, wariness of the increasing strength of natural disasters, and repeated failures of energy grids around the nation begs a few questions.

  1. Is there a version of a power grid that can better endure hurricanes, heat waves, and freezes?
  2. How does the Texas grid compare to other regional grids in the United States?
  3. What can we do to solve our power grid problems and who is responsible for implementing these solutions?

Hurricane-proof grids do not exist

There is no version of a grid anywhere in the United States that can withstand the brunt of a massive hurricane without experiencing outages.

The wind, rain, and flooding are simply too much to handle.

Some might wonder, “What if we buried the power lines?” Surely, removing the power lines from the harsh winds, rain, flying debris, and falling tree branches would be enough to keep the lights on, right?

Well, not necessarily. Putting aside the fact that burying power lines is incredibly expensive – estimates range from thousands to millions of dollars per mile buried – extended exposure to water from flood surges can still cause damage to buried lines. To pile on further, flood surges are likely to seriously damage substations and transformers. When those components fail, there’s no power to run through the lines, buried or otherwise.

Heat waves and winter freezes are a different story

During extreme weather events like heat waves or winter freezes, the strain on the grid goes beyond simple issues of generation and distribution—it’s also a matter of human behavior and grid limitations.

Building and maintaining a power grid is extremely expensive, and storing electricity is not only costly but technically challenging. Most grids are designed with little "buffer" capacity to handle peak demand moments, because much of the infrastructure sits idle during normal conditions. Imagine investing billions of dollars in a power plant or wind farm that only operates at full capacity a fraction of the time. It’s difficult to recoup that investment.

When extreme weather hits, demand spikes significantly while supply remains relatively static, pushing the grid to its limits. This imbalance makes it hard to keep up with the surge in energy usage.

At the same time, our relationship with electricity has changed—our need for electricity has only increased. We’ve developed habits—like setting thermostats to 70 degrees or lower during summer heat waves or keeping homes balmy in winter— that, while comfortable, place additional strain on the system.

Behavioral changes, alongside investments in infrastructure, are crucial to ensuring we avoid blackouts as energy demand continues to rise in the coming years.

How the Texas grid compares to other regional grids

Is the Texas grid really in worse shape compared to other regional grids around the U.S.?

In some ways, Texas is lagging and in others, Texas is a leader.

One thing you might have heard about the Texas grid is that it is isolated, which restricts the ability to import power from neighboring regions during emergencies. Unfortunately, connecting the Texas grid further would not be a one-size fits all solution for fixing its problems. The neighboring grids would need to have excess supply at the exact moment of need and have the capacity to transmit that power to the right areas of need. Situations often arise where the Texas grid needs more power, but New Mexico, Oklahoma, Arkansas, and Louisiana have none to spare because they are experiencing similar issues with supply and demand at the same time. Furthermore, even if our neighbors have some power to share, the infrastructure may not be sufficient to deliver the power where it’s needed within the state.

On the other hand, Texas is leading the nation in terms of renewable development. The Lone Star State is #1 in wind power and #2 in solar power, only behind California. There are, of course, valid concerns about heavy reliance on renewables when the wind isn’t blowing or the sun isn’t shining, compounded by a lack of large-scale battery storage. Then, there’s the underlying cost and ecological footprint associated with the manufacturing of those batteries.

Yet, the only state with more utility-scale storage than Texas is California.

In recent years, ERCOT has pushed generators and utility companies to increase their winterization efforts, incentivize the buildout of renewables and electricity storage. You might have also heard about the Texas Electricity Fund, which represents the state’s latest effort to further incentivize grid stability. Improvements are underway, but they may not be enough if homeowners and renters across the state are unwilling to set their thermostats a bit higher during extended heatwaves.

How can we fix the Texas grid?

Here’s the reality we must face – a disaster-proof, on-demand, renewable-powered grid is extremely expensive and cannot be implemented quickly. We must come to terms with the fact that the impact of natural disasters is unavoidable, no matter how much we “upgrade” the infrastructure.

Ironically, the most impactful solution out there is free and requires only a few seconds to implement. Simple changes to human behavior are the strongest tool we have at our disposal to prevent blackouts in Texas. By decreasing our collective demand for electricity at the right times, we can all help keep the lights on and prices low.

During peak hours, the cumulative effort is as simple as turning off the lights, turning the thermostat up a few degrees, and running appliances like dishwashers and laundry machines overnight.

Another important element we cannot avoid addressing is global warming. As the temperatures on the surface of the earth increase, the weather changes, and, in many cases, it makes it more volatile.

The more fossil fuels we burn, the more greenhouse gases are released into the atmosphere. More greenhouse gases in the atmosphere leads to more volatile weather. Volatile weather, in turn, contributes to extreme grid strain in the form of heat waves, winter freezes, and hurricanes. This is no simple matter to solve, because the energy needs and capabilities of different countries differ. That is why some countries around the globe continue to expand their investments in coal as an energy source, the fossil fuel that burns the dirtiest and releases the most greenhouse gases per unit.

While governments and private organizations continue to advance carbon capture, renewable, and energy storage technology efficiency, the individual could aid these efforts by changing our behavior. There are many impactful things we can do to reduce our carbon footprint, like adjusting our thermostat a few degrees, eating less red meat, driving cars less often, and purchasing fewer single-use plastics to name a few.

If we want to see real change, we need action by all parties. The complex system of generation, transmission, and consumption all need to experience radical change, or the vicious cycle will only continue.

———

Sam Luna is director at BKV Energy, where he oversees brand and go-to-market strategy, customer experience, marketing execution, and more.

This article originally ran on EnergyCapital.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Texas plugs in among states at highest risk for summer power outages in 2025

hot, hot, hot

Warning: Houston could be in for an especially uncomfortable summer.

A new study from solar energy company Wolf River Electric puts Texas at No. 2 among the states most at risk for power outages this summer. Michigan tops the list.

Wolf River Electric analyzed the number of large-scale outages that left more than 5,000 utility customers, including homes, stores and schools, without summertime electricity from 2019 to 2023. During that period, Texas experienced 7,164 summertime power outages.

Despite Michigan being hit with more summertime outages, Texas led the list of states with the most hours of summertime power outages — an annual average of 35,440. That works out to 1,477 days. “This means power cuts in Texas tend to last longer, making summer especially tough for residents and businesses,” the study says.

The Electric Reliability Council of Texas (ERCOT), which operates the electric grid serving 90 percent of the state, predicts its system will set a monthly record for peak demand this August — 85,759 megawatts. That would exceed the current record of 85,508 megawatts, dating back to August 2023.

In 2025, natural gas will account for 37.7 percent of ERCOT’s summertime power-generating capacity, followed by wind (22.9 percent) and solar (19 percent), according to an ERCOT fact sheet.

This year, ERCOT expects four months to surpass peak demand of 80,000 megawatts:

  • June 2025 — 82,243 megawatts
  • July 2025 — 84,103 megawatts
  • August 2025 — 85,759 megawatts
  • September 2025 — 80,773 megawatts

One megawatt is enough power to serve about 250 residential customers amid peak demand, according to ERCOT. Using that figure, the projected peak of 85,759 megawatts in August would supply enough power to serve more than 21.4 million residential customers in Texas.

Data centers, artificial intelligence and population growth are driving up power demand in Texas, straining the ERCOT grid. In January, ERCOT laid out a nearly $33 billion plan to boost power transmission capabilities in its service area.

Houston ranks among top 5 cities for corporate HQ relocations in new report

h-town HQ

The Houston area already holds the title as the country’s third biggest metro hub for Fortune 500 headquarters, behind the New York City and Chicago areas. Now, Houston can tout another HQ accolade: It’s in a fourth-place tie with the Phoenix area for the most corporate headquarters relocations from 2018 to 2024.

During that period, the Houston and Phoenix areas each attracted 31 corporate headquarters, according to new research from commercial real estate services company CBRE. CBRE’s list encompasses public announcements from companies across various sizes and industries about relocating their corporate headquarters within the U.S.

Of the markets included in CBRE’s study, Dallas ranked first for corporate relocations (100) from 2018 to 2024. It’s followed by Austin (81), Nashville (35), Houston and Phoenix (31 each), and Denver (23).

According to CBRE, reasons cited by companies for moving their headquarters include:

  • Access to lower taxes
  • Availability of tax incentives
  • Proximity to key markets
  • Ability to support hybrid work

“Corporations now view headquarters locations as strategic assets, allowing for adaptability and faster reaction to market changes,” said CBRE.

Among the high-profile companies that moved their headquarters to the Houston area from 2018 to 2024 are:

  • Chevron
  • ExxonMobil
  • Hewlett-Packard Enterprise
  • Murphy Oil

Many companies that have shifted their headquarters to the Houston area, such as Chevron, are in the energy sector.

“Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future,” Steve Kean, president and CEO of the Greater Houston Partnership, said in 2024. “With deep roots in our region, Chevron is a key player in establishing Houston as a global energy leader. This move will further enhance those efforts.”

According to CBRE, California (particularly the San Francisco Bay and Los Angeles areas) lost the most corporate HQs in 2024, with 17 companies announcing relocations—12 of them to Texas. Also last year, Texas gained nearly half of all state-to-state relocations.

In March, Site Selection magazine awarded Texas its 2024 Governor’s Cup, resulting in 13 consecutive wins for the state with the most corporate relocations and expansions.

In a news release promoting the latest Governor’s Cup victory, Gov. Greg Abbott hailed Texas as “the headquarters of headquarters.”

“Texas partners with the businesses that come to our great state to grow,” Abbott said. “When businesses succeed, Texas succeeds.”

CBRE explained that the trend of corporate HQ relocations reflects the desire of companies to seek new environments to support their goals and workforce needs.

“Ultimately, companies are seeking to establish themselves in locations with potential for long-term success and profitability,” CBRE said.

SpaceX test rocket explodes in Texas, but no injuries reported

SpaceX Update

A SpaceX rocket being tested in Texas exploded Wednesday night, sending a dramatic fireball high into the sky.

The company said the Starship “experienced a major anomaly” at about 11 pm while on the test stand preparing for the 10th flight test at Starbase, SpaceX’s launch site at the southern tip of Texas.

“A safety clear area around the site was maintained throughout the operation and all personnel are safe and accounted for,” SpaceX said in a statement on the social platform X.

CEO Elon Musk ’s SpaceX said there were no hazards to nearby communities. It asked people not to try to approach the site.

The company said it is working with local officials to respond to the explosion.

The explosion comes on the heels of an out-of-control Starship test flight in late May, which tumbled out of control. The FAA demanded an investigation into the accident.