ERCOT, and Texas, Need a Different Kind of Growth

When we’re young, we grow. We add inches and pounds and that’s still unambiguously great. 

As we grow older, we seek out other kinds of growth — intellectual, social, spiritual, and emotional. We may want to learn a new language, travel to new places, and acquire new knowledge and skills. We’re probably glad for growth in our bank accounts, less-so in our waistlines. 

The key is defining what kind of growth we want.

ERCOT could use that kind of clarity right now.

If you’ve heard ERCOT CEO Pablo Vegas speak in the past couple of months, you’ve probably seen this graph. It shows massive growth in the state’s peak power demand. Politicians often say that’s a good thing: it shows Texas is growing with more people, companies, and economic opportunity.

Note, though, that chart shows peak demand. That’s not the growth we want at this point. Meeting peak demand is expensive and inefficient. Many generating resources, often high polluting ones, are kept around — and paid — just to be available for a few hours. 

There’s a better, cheaper, and more effective way to serve the state’s growing economy. That starts with shaving off those peaks without compromising economic growth…