Photo: Al Braden
The events surrounding Winter Storm Uri revealed how gas, electricity and water are interrelated, and how there is the need to weatherize and winterize all three systems to increase their resiliency. As a reminder, millions of Texans were left without power for multiple days, thousands of drinking water systems failed, air pollution spiked, billions in economic damage were incurred, hundreds died and real trauma occurred. Particularly hard hit were Texans living in older apartments and homes, including in some neighborhoods which are still recovering from other disasters like Hurricane Harvey. While imperfect – especially on the gas supply -- the legislature, the PUCT and ERCOT have taken steps to weatherize the power sector, while also focusing on supply-side issues like extra reliability services.
Despite efforts by many organizations, some legislators and others, political leadership failed to recognize the other issue revealed in the grid failure during Winter Storm Uri: electric (and gas) customers need solutions focused on the demand-side of the equation. We must invest in energy efficiency measures in our current residential and commercial buildings through action at the Public Utility Commission, and assure that new buildings are built to up-to-date construction codes and standards through the State Energy Conservation Office. That’s a Texas two-step that would save consumers money, make the grid more resilient, reduce electric demand, and reduce the pollution that creates smog in our cities and cooks the climate.
During winter-storm Uri, total electric demand set records. Thus, ERCOT’s official forecast, in megawatts, for the “extreme” peak winter electricity demand in Texas for winter 2020/2021 was 67,208, while the actual estimated peak demand reached on Feb. 16, 2021 would have been 76,819 MW, nearly 10,000 MW higher if not for the grid failures. And those peaks were largely driven by residential and small commercial demand during winter and summer peak events. Indeed, an estimated 65 percent of the peak demand during winter and summer peaks is small business and residential consumers as they drive up cooling and heating needs. And with over 60 percent of Texas homes relying on often outdated inefficient electric heating, and some 50 percent of Texas residences with inadequate insulation, it is no wonder that heating and cooling needs drive Texas’s electricity demand.
Texas used to be a national leader on energy efficiency programs. In 1999, as part of electric deregulation, we were the first state to establish energy efficiency standards (called Energy Efficiency Portfolio Standard), but over the past two decades we’ve sunk to 29th place nationwide (Source: ACEEE). Indeed, the last time Texas updated energy efficiency goals was in 2011 with passage of SB 1125. That law established a very modest goal of 0.4 percent of peak demand, but did not establish specific energy savings goals or required programs for the winter. We left it largely up to the utilities like CenterPoint Energy on what programs to invest in. The grid failure during Winter Storm Uri revealed the extent of Texas’s relatively tiny investments in making our homes, apartments, and small businesses energy efficient and safe. Reducing the demand on our grid through utility-funded energy efficiency programs could have prevented much of that disaster, and made us more resilient for the future. Energy efficiency reduces energy bills, improves our local economies, and protects the environment. It’s time for the Public Utility Commission to follow up on their own promises. They need to open up a rulemaking and set a stronger statewide goal for energy efficiency.
Take action here: contact the PUC today!
Indeed, while modest, the programs we do have are approved annually by the Commission and are very cost-effective, averaging about $1.2 cents per kw reduced, and over their lifetime, cost only two cents per kilowatt hour saved. Average retail rates are in the 12 to 14 cents per kilowatt. That’s pennies on the dollar to other grid “fixes.”
We should also do more on new buildings. Afterall, there is more construction and new homes in Texas than any other state, and every new building can be around for decades. One of the easiest things we can do is adopt the latest international construction codes, such as the 2021 International Energy Conservation Codes.
On February 4, the State Energy Conservation Office (SECO) – a division of the Texas Comptroller on Public Accounts – opened up a 30-day public comment session on potential statewide adoption of the 2021 Energy Codes, an international set of standards for energy efficiency. With only an initial comment period, SECO could adopt the codes later this year, which cover new construction of residential, multi-family and commercial construction. The Sierra Club Lone Star Chapter and more than a dozen additional organizations sent SECO comments in support of moving forward as soon as possible on rulemaking to adopt the codes.
Analysis by both the state’s Energy Systems Laboratory and a federal laboratory reveal the new codes would lead to new buildings that are 5-10 percent lower in energy use - and carbon emissions – compared to the current statewide code. If SECO were to adopt the 2021 codes, it would then require Texas’s major cities to adopt them too. Adopting codes is a way to help lower energy costs, clean up our air ,save energy, water and gas. They will help Texas burn less fossil fuels.
Texas last adopted the latest energy codes for new construction in 2015 through legislative action, but that law allows the State Energy Conservation Office to adopt new energy codes through an administrative process. They should. Adoption of new codes in Texas would reduce both commercial and residential demand and make our grid more resilient, while reducing costs to consumers.
Take action here to urge SECO to adopt up to date energy codes for new buildings!
Legislative and state leaders took important steps to weatherize the grid and to require additional supply solutions to keep the lights on, but they forgot the other part of the equation - the buildings where we live, work and play. Millions of Texans would benefit with some simple administrative action.