We are all paying more for our electricity.
Last year's winter storm cost Texas billions.
The KV defenders found how we
treat grid reliability is tide
to your retirement savings.
Investigative reporter
Erica Proffer explains.
You have to fix the grid,
fix the grid, fix the Texas grid,
fix the grid fix. The grid.
Part of the state's plan to fix
our electric grid may hit more than
your power bill. It could impact
your retirement. Texas requires at
least half of all electricity generated
to come from natural
gas. Last year, lawmakers passed
a bill to boycott any investment
company who refuses to invest
in the oil and gas industry.
So inappropriate message to to people
that do not want to do business with
Texas companies that the state of Texas
will also ask your business with them.
But it's not that simple, Texas.
Needs to build its grid
build for reliability. The
state uses 2 main sources
of energy for electricity,
natural gas and wind make up more
than 3/4 of our energy mix and both
industries play a role around the nation.
Texas is the largest exporter of natural
gas and the largest exporter of wind
electricity in the United States.
Craig Naser with Lone Star Sierra
Club advocates for renewable energy.
We have to encourage the expansion of
renewables, 'cause they're cheaper.
That's changing the way we
we allow people or companies to invest.
Renewables need more investment
dollars for storage. But The
thing is, it takes money upfront.
The reliability isn't there without it.
The state grid manager shows
right now our battery storage would power
less than 94,000 homes in peak demand.
That wouldn't cover all of Round Rock,
let alone the state. Thing is,
it could be done with our grid
on a larger scale,
but you're going to have to.
Change a bit the way things are done.
Who are your live in the
middle of the oil patch or not?
Oil and gas has a positive influence
on the lives of all Texans.
Todd Staples with Texas oil and
Gas Association says investments
should focus on fossil fuels.
Some of our nation's biggest
investment funds are heavily
invested in oil and natural gas
staples lobbies for the oil and
gas industry, and points to a
different return on investment.
The state's rainy day fund,
its oil and gas tax dollars. Retired
teachers have been a big beneficiary.
Our states water planning even county roads
have received funding out of that fund, so
going back to last year's
legislative session. Lawmakers heard
oil and gas producers say they couldn't
get loans to build out operations in
this Federal Reserve Bank of Dallas.
Report shows banks label oil and gas
investments too risky these big banks
targeting us and denying funding.
So Senate Bill 13,
mandates all state pension funds
to go to investment companies,
which back oil and gas that's more
than seven and a half percent of
teachers income and 9 1/2% of what
other state employees make Allstate.
Employees are required to pay into the
pension system so all state employees
are required to invest in oil and
gas where we buy stock in companies
in those investments that says a lot
about who we are and what we value.
But why the focus on retirement
retirement accounts make up the
largest American owned investments.
Recently, the federal government pushed
to have banks move investments away
from fossil fuels and a recent proposal
shows the effect of climate change.
As emerging risks to banks,
private investment groups invests
billions into renewable energy,
so energy is big.
Money in renewables are big money,
just just like rolling gas are.
So the amount of billions of
dollars attracted to Texas on a
yearly basis to build wind and
solar farms are doing credible.
Michael Webber is a professor
in energy resources at the
University of Texas at Austin.
The resources in Texas that
are particularly attractive in
getting most of the investment
and attention right now.
Our solar batteries and
wind almost in that order.
So it leaves Texas oil and gas
at war for retirement dollars
and some of the best growth this past year
has been in the oil and gas community.
Last year, companies tide to natural gas,
made billions of dollars for the
state pension system, companies,
401K's and individual retirement accounts.
Oil, which is the most important commodity
but teacher retirement systems of Texas
showed how the state law banning green
energy only investments could directly
harm teachers savings TRS investments.
Do not go directly to energy companies,
not into what's called commodities.
Commodities are very expensive to hold
because they have a very low return.
Instead, they rely on companies
tide to commodities.
The only exception to the new Texas
law state pensions cannot get out
of their banned investments unless
a better plan comes along and
similar to other divestment laws.
It includes the fiduciary exemption.
You want to reduce your emissions
and clean up air quality,
which I think most of us
who breathe want to do,
and a lot of investors certainly
want to do is they're putting
pressure on companies to clean up,
so we have decisions about the future
mix and what the role of gas will be.
All in gas companies are participating
in the development of a wide variety
like natural gas company energy
transfer, which made billions off
last February's winter storm.
Company leaders also supported
wind and solar last year.
We're certainly investing
our commitment to purchase.
What we see is very inexpensive power,
so we are supporting nobles or
that in that way or that manner,
but we'll continue to pursue those
that make sense so you can build a
wind farm and solar farm more cheaply,
more quickly and more profitably
in Texas than just about anywhere
in the world. And
that makes us very desirable.
So Texas attracts a lot of capital,
and it's like a lot of money,
but no matter which fuel public and private
retirements accounts invest everyone
we spoke with said all investments.
Public pensions and private companies
need diversity. I think it's very
important to think about the health of
these funds and how it benefits Texans and
Americans. We have a lot of options
and we have room to grow. In
Austin with defenders, I'm Erica proffer.