BLANKETING CENTRAL TEXAS." "I KNOW THOSE CREWS ARE WORKING SO DILIGENTLY OUT
THERE ON THOSE LINES, TRYING TO
GET PEOPLE RESTORED."
BEFORE THIS.
ONE IN FIVE TEXANS COULD NOT PAY
FOR POWER.
"IT'S IT'S IT'S SORT OF BEEN A
COMPOUNDING OF CHALLENGES,
RIGHT?"
POVERTY MAKES IT HARD TO PAY
BILLS.
THE PANDEMIC LEAVES PEOPLE
WITHOUT WORK.
AND NOW .THE FEBRUARY STORMS
BRING HIGHER
ELECTRICITY CHARGES.
SHERRI FLEMING RUNS THE ENERGY
RELIEF PROGRAMS IN
TRAVIS COUNTY.
"WE HAVE A LOT OF RESIDENTS IN
OUR COMMUNITY WHO ARE ON A FIXED
INCOME. AND WE KNOW HERE IN
TEXAS THE WEATHER'S NOT
ALWAYS OUR FRIEND."
THE TRAVIS COUNTY HEALTH AND
HUMAN SERVICES HAS
PROGRAMS TO HELP PEOPLE PAY
UTILITIES.
ONE CAN HAS A MAXIMUM TOTAL
ELIGIBLE ASSISTANCE AT
$8,200..
THE FEDERAL GOVERNMENT SENDS
MONEY TO TEXAS FOR
THOSE
THOSE STRAPPED DUE TO COVID-19. "THERE IS HELP OUT THERE." THE GOVERNMENT DOES NOT OFFER
MUCH
HELP FOR THOSE OUTSIDE THE
LOW-INCOME LINE.
"BUT WE ENCOURAGE THEM TO START
WITH THEIR PROVIDERS."
LAWMAKERS MUST FIGURE OUT HOW TO
BALANCE THE
FINANCIAL BURDENS AND PREVENT
ANOTHER
WIDESPREAD WINTER OUTAGE.
"TEXAS HAS ALWAYS LIKED THE IDEA
THAT YOU GET PAID IF YOU RUN."
MOST OF TEXAS IS A DEREGULATED
COMPETITIVE
ELECTRICITY MARKET.
THE GENERATORS OF ELECTRICITY
CAN SET THEIR
PRICE.
THE MIDDLEMAN - TRANSMISSION AND
DISTRIBUTION -
IS CONTROLLED BY REGULATORS.
THE FINAL STOP, THE PROVIDER,
PAYS THE MIDDLEMAN AND
ADJUSTS RATES BASED ON CONTRACTS
WITH THE
GENERATORS.
THE ELECTRIC RELIABILITY COUNCIL
OF TEXAS -ERCOT-
IS IN CHARGE OF THE MARKET WHERE
THE CONTRACTS
TAKE PLACE.
"WE DO TABLETOP EXERCISES. I
WILL TELL YOU WE DID NOT PREDICT
THIS
EVENT."
THIS EVENT." DURING THE WINTER STORM, SERVICE
PROVIDERS
NEEDED EVERY PIECE OF ENERGY IT
COULD GET.
WHEN GENERATORS' EQUIPMENT
BROKE, THE
SUPPLY WENT DOWN.
SOME OF THOSE LONG-TERM
CONTRACTS WENT UNFILLED.
RETAILERS WERE LEFT TO BUY FROM
THE OPEN MARKET.
SO, THOSE WHO DID HAVE POWER TO
SELL COULD RAISE
THE PRICE AND STILL GET PAID.
"DID ERCOT FAIL TO DO ITS JOB?"
"WE DID NOT FAIL IN THAT WE
PREVENTED A BLACKOUT."
"THE ANSWER IS YES, NO OR DON'T
KNOW. WHAT'S YOUR ANSWER"
"I'D SAY GIVEN THE DAMAGE THAT
WAS DONE AND THE SUFFERING
PEOPLE
EXPERIENCED, I CAN'T CALL THAT A
SUCCESS. NO, SIR."
"SO, IT WAS A FAILURE."
THE PUBLIC UTILITY COMMISSION
OVERSEES THE
ERCOT WHICH CONTROLS THE POWER
GRID.
THE PUC CAPPED CONTRACTS AT
$9,000 PER
MEGAWATT HOUR.
IN 2019, TEXAS AVERAGE MWH COST
$38.
PUC FILED A PUBLIC EXPLAINER
SHOWING IT AND
ERCOT ALLOWED THE $9,000 IN
ORDER TO ENCOURAGE
GENERATORS TO SELL.
"THE PROBLEM IS IN A MARKET WITH
A $9,000 MWH PRICING, THE RISK
IS SKEWED IN A WAY THAT THE
CONSUMER CAN GET HURT."
GOVERNOR GREG ABBOTT WANTS TO
FORCE
COMPANIES TO WINTERIZE
THE KVUE DEFENDERS REPORTED .
WINTERIZING
WAS RECOMMENDED BY THE STATE A
DECADE AGO.
NEVER ENFORCED.
"BUT DESPITE DOZENS OF
SUGGESTIONS, THERE WERE ZERO
REQUIREMENTS."
WINTERIZING IS MORE EXPENSIVE ON
EXISTING
FACILITIES.
EXISTING FACILITIES. "I EQUATE IT TO BUILDING A HOME.
IT'S A LOT EASIER TO PUT IN THE
WIRING WHEN IT'S STILL IN STUDS
SO IT'S DEFINITELY CHEAPER AT
THE
TIME OF FACILITY CONSTRUCTION"
BRUCE THAMES IS THE HEAD OF
THERMON.
THEY MAKE PRODUCTS TO KEEP
SYSTEMS INSULATED.
"THE TECHNOLOGY IS THERE. IT'S
AVAILABLE. IT'S JUST THAT THE
FREEZES HERE IN TEXAS ARE SO
INFREQUENT. I THINK WE GET
COMPLACENT AND WE DON'T TAKE THE
PROPER PRECAUTIONS."
SOME LAWMAKERS WANT TO BACK OUT
ON
ALLOWING THE 9-THOUSAND DOLLAR
MEGAWATT
HOUR PRICE TAG.
PAY LESS TO THOSE WHO DID
GENERATE POWER IN THE
STORM.
REPRICE IT.
THE CITY OF AUSTIN IS ONE OF
THOSE WHO GENERATED
ELECTRICITY.
WHILE 215-THOUSAND OF ITS OWN
CUSTOMERS SAT
POWERLESS IN THE COLD DUE TO
ERCOT DEMANDS...AUST
IN SOLD ELECTRICITY TO THE
STATE.
"WE HAD NO AVAILABLE CIRCUITS TO
ROTATE CUSTOMER
OUTAGES."
IN A STATE FILING, AUSTIN ENERGY
TOLD PUC
"WHOLESALE GAINS OR LOSSES FROM
GENERATION ..
ULTIMATELY FLOW DIRECTLY THROUGH
TO AUSTIN
ENERGY'S CUSTOMERS." AND "ANY
REPRICING
UNDERTAKEN BY THE COMMISSION
WILL BE BORNE
BY AUSTIN ENERGY'S CUSTOMERS IN
THE LONG-
TERM."
"THIS EVENT SERVES AS A SOBER
REMINDER AS TO THE CRITICAL
NATURE OF OUR NATION'S ENERGY
SUPPLY IN MAINTAINING AND
SUPPORTING NOT ONLY OUR ECONOMY,
BUT ALSO OUR
FUNDAMENTAL WAY OF LIFE."
COMPANY EXECUTIVES WITH AMERICAN
ELECTRIC
POWER TOLD INVESTORS AND THE
PRESS DEBT MAY BE THE
ONLY WAY TO COVER THEIR COSTS..
AEP IS BOTH A MIDDLEMAN AND
RETAILER.
"OBVIOUSLY LOOKING TO BE ABLE TO
BE SENSITIVE TO THE
CUSTOMER NEEDS AS THEY TRY TO
ABSORB THIS COST, BUT THEN ALSO
MANAGING THE BALANCE SHEET AND
THE METRICS."
ONCOR, WHICH COVERS MUCH OF
CENTRAL TEXAS, IS ONLY A
MIDDLEMAN.
"WE'RE NOT INVOLVED IN THE
COMMODITY MARKETPLACE AS
YOU SEE OTHER PARTICIPANTS THAT
HAVE AN OBLIGATION TO GO
PROCURE GAS TO GENERATE
ELECTRICITY OR PRODUCE
ELECTRICITY. WE'RE NOT INVOLVED
IN THAT BUSINESS. SO, WE
DON'T HAVE ANY DIRECT BILLS THAT
GO TO CUSTOMERS."
CENTERPOINT ENERGY ALSO
CONTRACTS WITH
GENERATORS AND SETS GAS RATES
FOR CONSUMERS
ACROSS EIGHT STATES.
SEC FILINGS SHOW CENTERPOINT
SPENT 2 AND A
HALF BILLION DOLLARS BUYING
INCREMENTAL
NATURAL GAS SUPPLIES DURING THE
STORMS.
THE COMPANY LEADERS TOLD
INVESTORS TO EXPECT "COST
RECOVERY" STARTING IN THE THIRD
QUARTER.
MEANING GAS BILLS AROUND AUSTIN
AND THROUGHOUT
EAST TEXAS MAY SEE THE IMPACT
LATER IN THE YEAR.
"WE BELIEVE THESE COSTS TO BE
FULLY RECOVERABLE FOR
CENTERPOINT. ...
EVEN IN THIS RAMP UP YEAR, WE
EXPECT SAVINGS OF ABOUT $15
MILLION."
WINTERIZING .
OR REPRICING.
FLEMING SAYS PEOPLE NEED HELP
NOW.
"I THINK I THINK THE KEY TO IT
REALLY IS, IS THE THE THING
WE'RE TIRED
OF HEARING, AND THAT IS TO BE
PATIENT BECAUSE THE SYSTEMS THAT
WOULD RESPOND TO THIS NEED IN
OUR COMMUNITY HAVE ALREADY
BEEN RESPONDING IN OVERDRIVE FOR
FOR THE PANDEMIC."
PROFFER: "LET'S SAY I APPLY
TODAY, HOW SOON ON AVERAGE,
WOULD I
EXPECT TO HEAR SOMETHING?"
"WE HAVE A TREMENDOUS WAITING
LIST, IN SOME SCENARIOS
IT COULD BE SEVERAL MONTHS."
AUSTIN ENERGY, WHICH IS NOT PART
OF THE STATE'S
DEREGULATED ENERGY MARKET,
CANNOT RAISE
ELECTRICITY RATES UNTIL
NOVEMBER. AUSTIN RATES
ARE SET BY THE CITY COMMISSION.
SO RATE CHANGES
WOULD COME NO SOONER THAN 2022.
WITH THE KVUE DEFENDERS. I'M
ERICA
ERICA PROFFER. WITH THE KVUE DEFENDERS. I'M
ERICA PROFFER.
ERICA PROFFER.