Texas
Cheap Natural Gas Means Lower Electricity Prices Except In Texas
Why ERCOT’s Power is the Most Expensive in the U.S
In 2023, Texans paid more for wholesale electricity and suffered more calls for conservation than residents served by any other grid across the nation.
And there’s no reason to expect that to change anytime soon.
ERCOT charged Texas consumers the highest electricity prices in the nation for 2023.
The great irony for the energy capital of the world is that the low price of natural gas drove down electricity prices everywhere but Texas, the nation’s largest natural gas producer. Texas also has more utility scale renewable electricity generation than any other state. The low and zero fuel prices cannot overcome the flawed market design used by ERCOT, the Electric Reliability Council of Texas. The market design handicaps the capital investment required to produce inexpensive and reliable electricity supplies.
We predicted this outcome more than a decade ago.
Let’s review. For eight of the 10 years prior to ERCOT’s failure in 2021, the average wholesale price received by generators was less than the cost of building and operating new generating plants—natural gas turbine units to be specific. Unable to recover their costs, investors refused to build new power plants and, in fact, cut back on maintaining existing coal and natural gas power plants, many of which had already been written off. During 2023, ERCOT frequently reported more unplanned outages for its generator portfolio than PJM, a much larger grid that serves all or part of 13 states and the District of Columbia.
At 1:38 a.m. February 15, 2021, the ERCOT grid suffered a cascading series of failures attributed to a lack of weatherization of key components of the electricity supply chain. Unprotected power plants froze. Natural gas deliveries dropped off. Coal piles froze. A pump for the cooling reservoir of a nuclear power plant froze and tripped off the reactor. ERCOT and the local utilities that distribute electricity failed to manage a process of rolling blackouts that could have preserved grid stability.
Facing a demand call of more than 70,000 megawatts, ERCOT came up 52,000 megawatts short at the low point of the debacle. Extended blackouts across a customer base of 26 million people caused 246 deaths and cost the state more than $100 billion in property losses and economic losses. Hundreds of lawsuits for wrongful deaths and economic losses are pending.
What Has Texas Done Since The 2021 Freeze?
The first bills out of the Texas Legislature following the storm consolidated governance of the ERCOT grid under the governor and required that the electricity supply chain, including natural gas providers, improve weatherization. In August 2021, the Public Utility Commission of Texas quickly adopted recommendations made 10 years earlier by the North American Electric Reliability Corporation following the 2011 ERCOT grid failure.
In the summer of 2021, the newly appointed PUCT chair stated that the ERCOT market design needed to be totally scrapped. He resigned from the post in 2023 following the Legislature’s rejection of his proposed solution.
Texas continues to embrace its electricity-only market design under which power plants only make revenue when they are generating electricity. Think about paying firefighters only when they at a fire—and they have to buy their own hoses, ladders and firetrucks. And because there are almost 1 million more Texans today than in 2021, demand has grown but ERCOT’s tweaks to the market have only increased prices without increasing reliability or investment in new power plants.
In 2023, the Texas government created the ECRS or ERCOT Contingency Reserve Service. Under this rules regime, existing power plants are paid to step out of the daily market to create “reserve capacity” where none existed before. Texas government missed the fact that because ERCOT was already short capacity for peak demand days the plan did not actually create any new supply. In fact, the ECRS created an artificial shortage, leading to the mirage of more peak demand days for the market during 2023. ERCOT’s Independent Market Monitor has attributed $12.5 billion in overcharges to this new market regime.
Implementing ECRS transfers wealth from consumers to the power plants—including renewable plants. It is worse than a tax because there is no quid pro quo, no requirement that the power plant operators build new supply capacity.
ERCOT’s portfolio of electricity supplies is not static. The nation’s largest portfolio of utility scale wind and solar farms continues to expand rapidly. This means legacy coal and natural gas power plants will be used less often and will not have any revenues on those days they are not generating electricity into the market. More of these plants will retire and take the electricity they could provide permanently out of the equation.
In 2021, the Texas government refused offers by Warren Buffet’s Berkshire Hathaway
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In one potentially positive development, Pattern Energy is attempting to complete its Southern Spirit transmission project, which will bring up to 3,000 megawatts of cheap electricity to Texas from the federally regulated grids in Georgia, Alabama, and Mississippi via a high voltage DC powerline. Certainly, there is no irony for the Texas Legislature that less regulated power markets can provide less expensive electricity to Texas—or provide a $2.6 billion capital project, hundreds of jobs, and an expanded tax base for those states.
Paying More For Less
Renewables have bolstered the grid, but they will not immediately save Texans money.
The day when renewable resources can replace all coal and natural gas power plants is in the distant future. Think about it. Assume, for simplicity’s sake, 100% efficiencies and capacities. One 1,000 megawatt natural gas generator can be replaced by two solar farms of the same capacity (12-hour days) and three, 4-hour battery packs. Announced solar farms and utility scale battery projects will cost more than $1 billion per 1,000 megawatts of capacity, but at $1 billion each, it will take more than $5 billion to replace $1 billion.
This renewables growth requires a costly buildout of transmission lines to move the power to urban consumers from the rural areas where wind and solar farms are situated. Transmission companies are guaranteed a rate of return on their assets whether or not they are in use. Because renewables rarely operate at 100% of nameplate capacity, to transition the grid to 100% renewables will require a relative overbuild of transmission line capacity that will also offset the zero cost of fuel enjoyed by renewables. Consumers are already seeing this component of their bills rise.
Counterintuitively, and wrongly, Texas has embraced expanding electricity demand without making sure there is enough supply capacity in ERCOT. Cryptocurrency miners have been the primary beneficiaries. They arbitrage the ERCOT market by purchasing electricity at prices below what any other consumer pays, receiving massive payments or credits from the ERCOT market when they sell that electricity back to the grid in times of tight market conditions. For example, low price purchase contracts at 2.5-cents per kilowatt hour and credits of $5 per kilowatt hour. Texas cryptominers already consume more electricity than the City of Austin on a daily basis. By adding more cryptominers to the grid, ERCOT guarantees that each one will make money playing the electricity arbitrage game—at the expense of the everyday Texas consumer. ERCOT’s Independent Market Monitor has pointed out that increased cost to consumers.
The local utilities that distribute electricity in Texas are increasing their rates to consumers, also. These are the regulated monopolies in each service area that distribute electricity to consumers. In Houston, for example, CenterPoint Energy
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The fourth segment of the ERCOT electricity supply chain is the retail electricity provider or REP. These companies are the middlemen between the generators, transmission operators, and local distribution companies. The REPs do not have any skin in the game. In the best of times, they match consumers’ preferences for time of day electricity usage, green or cheap electricity by trading with generators and commodities markets for fixed price contracts or futures contracts. Due to the increasing price volatility in the ERCOT market—again, illustrated by the chart above—these REPs are finding it more expensive to lock in fixed price contracts for their customers. This is a cost they pass along.
Unscrupulous REPs are often caught short as they take their customers’ monies and can’t back up their fixed rate promises. Why should they? They can walk away without consequence leaving the consumer to be thrust into the Provider of Last Resort power marketer bucket at ERCOT at higher rates. The Texas Legislature mandated bailouts of these REPs following 2021, and consumers will be paying down these billions of dollars for the next many years.
There are major profits to be had in the Texas market, and no one should be surprised. Since Enron first gamed the California electricity market in 2000-2001, we have taught that game to students.
Texas continues to miss opportunities to “fix” the grid. The governor, PUCT, and ERCOT now routinely warn residents that rolling blackouts are in the toolkit for tight market conditions, just as rolling blackouts are used in Turkey, Pakistan, and Venezuela.
Texas electricity consumers are also voters in this single state electricity market. They are enraged by their rising bills. The magical thinking that Texas could get more for less is over and should have been over long ago. The Wall Street Journal pointed out in 2021 that Texans had been overcharged $28 billion due to the ERCOT market design. Add in hundreds of deaths and billions of dollars more in overcharges and economic losses. Without positive action, ERCOT Weather Roulette will continue for years to come with volatile and higher prices, and more frequent calls for conservation. In other words, ERCOT and all its failures are a repudiation of the so-called benefits of deregulation and the Texas model of electricity.
Texas
Prescribed burns play regenerative role in Texas ecosystems. Here’s why
COVINGTON, TX – Clouds of grey and brown smoke rolled through the field as yards of fire roared across dead grass. About 30 acres of Austin and Kelli Rollins’ property burned on the March morning, leaving blackened remnants just a couple dozen yards from the house.
But what looked like a natural disaster was the result of careful planning.
Prescribed burns, like the one onthe Rollinses property, can benefit wildlife populations, encourage the growth of native prairie grasses and limit damage from wildfires. Throughout Texas’ history, fires occurred naturally every three to seven years. Most native species are fire-adapted, Texas A&M’s Prescribed Burn Coordinator David Brooke said, but human fire suppression tactics have substantially decreased fire frequency and changed the landscape.
“From the Edwards Plateau, Hill Country up towards Dallas [and the] Panhandle, our habitat was a lot more open. It’s supposed to be rolling plains, prairies … with intermittent tree cover. What we’re seeing now is woody encroachment,” Brooke said.
At the Rollinses, the prescribed burn began with an introductory meeting to discuss strategy and a test fire on a corner of the lot. The team, largely consisting of members of the North Texas Prescribed Burn Association, edged the field with a water line, creating a moisture barrier to prevent flames from spreading in the wrong direction. Just a few yards behind the lengthening water line, volunteers used drip torches to create a “black line,” a thin burned strip meant to contain the larger plumes of fire that would come later.
The tip of a drip torch is used to set fire to Austin and Kelli Rollins property outside of Covington, Texas, March 18, 2026. They used a controlled burn to regenerate the pasture surrounding their home. Tom Fox / Staff Photographer
The crew collaborated with the wind, starting the test fire at the most downwind corner and expanding the black lines perpendicularly. Winds whipped, around 20 miles per hour, approaching the regulatory safety limit. By working backwards from the fire’s natural destination, the team limited the chance of flames escaping their control.
“Essentially what we’re doing is building a catcher’s mitt so when we light everything up, [the black line] will be there to stop it,” Brandon Martin said, who serves on the board of the prescribed burn association.
North Texas Prescribed Burn Association members perform a controlled burn at a Covington, Texas ranch

Martin, dressed in a hard hat and flame retardant clothing, assisted with this prescribed burn as a volunteer, but he also knows fire professionally through his role in emergency management at the Tarrant Regional Water District. As well as providing advice, he actively spread flames with a drip torch. Torch canisters are filled with fuel that, when turned down, trickles past a burning wick and ignites as it falls to the ground.
This fire is part of an effort to return the field to native prairie, a landscape Martin said depends on fire to thrive. Regular burning limits the growth of saplings and bushes, keeping the environment clear of exotic species that can outcompete native grasses.

North Texas Prescribed Burn Association member Don Nelson radios wind speed and direction to the rest of the crew during a controlled burn on the property of Austin and Kelli Rollins outside of Covington, Texas, March 18, 2026.
Tom Fox / Staff Photographer
Brooke said fire isn’t only a natural land management process, it’s also cost-effective. Invasive species can be removed mechanically with chainsaws and digging, or with chemical application. But in either instance, the labor and equipment costs are usually significantly higher than burning, especially with bigger plots.
“From an economics standpoint, it’s a heck of a lot cheaper to use fire,” Brooke said.
The resulting ash is high in nitrogen and phosphorus, which fertilizes the soil. With a little rain, Brooke said fields are often covered in green shoots within a matter of weeks, with a reinvigorated landscape emerging in the following months.
However, Brooke noted “one burn isn’t a silver bullet,” since invasive species could also be fed by these fresh nutrients. But if landowners can commit to following the three- to seven-year historic fire frequency, “it gives your native species the edge.”

Austin Rollins grabs a pressure sprayer to extinguish a spot fire during a controlled burn on his property near Covington, Texas, March 18, 2026.
Tom Fox / Staff Photographer
New growth also attracts a variety of wildlife, as it is highly palatable and an ideal habitat to spot predators. Brooke said he’s seen a number of landowners undertake prescribed burns to improve the hunting prospects.
Prescribed burns are best known for their power to stopthe spread of wildfire. The lack of fuel for a wildfire after an intentional burn can lower the fire’s intensity and help save structures. Brooke pointed to the town of Borger, which has a history of proactive wildfire management.
In the fall of 2023, they burned a 7-mile-long, 250-foot wide strip along the edge of town, creating a “black line” that proved crucial months later. When one of the 2024 Panhandle wildfires approached the town, it stopped just outside of several neighborhoods at the fire break. Firefighters credited the work with saving homes and possibly lives.
For landowners considering undertaking controlled burns themselves, Brooke said Texas is a “right-to-burn” state – guaranteeing landowners the right to burn on their own property – but there are still regulations to follow. County burn bans must be observed, local authorities notified and some state agencies regulate weather conditions to manage the smoke.

The North Texas Prescribed Burn Association used a backing fire to control a burn on the property of Austin and Kelli Rollins outside of Covington, Texas, March 18, 2026. They burned approximately 30 acres.
Tom Fox / Staff Photographer
Wind speeds are required to be between six and 23 miles per hour during a burn. If the breeze is too low, smoke won’t clear properly and it could settle on nearby roads, potentially causing an accident. If gusts are too high, fire behavior becomes more unpredictable.
Some counties also require a copy of the burn plan to be submitted in advance, which accounts for things like weather, the crew, suppression tactics (such as water, specialized rakes and leaf blowers) and smoke modeling.
Ultimately, given the high winds, the team on the Rollinses land decided to burn back to the black line in smaller strips instead of one roaring blaze. But even those sections could generate significant heat as the orange glow jumped from stem to stem. The gusts cleared most smoke quickly, but each time a new strip ignited, the plumes towered into the distance.
When just a few smoldering spots remained, the group gathered to debrief and share H-E-B sandwich trays. Pairs inquired about other teams’ strategies, but mostly, the crew was pleased with the safety and their progress – finishing the project in about three hours.
“Man, it’s beautiful,” Kelli Rollins said as she took a picture of the charred field against the blue sky. “I know that’s a weird thing to say, but it is.”
Texas
Texas city named as 1 of 3 finalists for Elon Musk’s ‘Boring Company’ projects
A modified Tesla Model X drives into the tunnel entrance before an unveiling event for the Boring Company Hawthorne test tunnel in Hawthorne, south of Los Angeles, California on December 18, 2018. – On Tuesday night December 18, 2018, Boring Co. will
DALLAS – After a months-long competition to convince tech mogul Elon Musk’s Boring Company to choose a U.S. city for a transit tunnel project, one Texas city has made the cut for the final three in consideration.
‘Tunnel Vision Challenge’ finalists
What we know:
The “Thrilling Three” in the running for the Tunnel Vision Challenge, announced in January, are Dallas, New Orleans, LA, and Baltimore, MD.
Dallas is in consideration for a “University Hills Loop.” When the challenge first launched on Jan. 18, the options of “a Loop tunnel, a freight tunnel, a pedestrian tunnel, a utility tunnel, a water tunnel, or any other use case where a tunnel would be useful” were pitched. All three finalists are Loop tunnels, which the company tags as “Teslas in Tunnels!”
Wednesday’s announcement says the projects will be up to one mile long and 12 feet in diameter.
What’s next:
The Boring Company said in their Wednesday announcement that, if possible, it “would be awesome” to build all three Loops.
The company plans to, along with the project stakeholders, enter into a rigorous diligence process which includes “meetings with elected officials, regulators, community leaders, and business leaders; geotechnical borings; and utility and subsurface infra investigation.”
They say they plan to build any and all final projects that are found to be feasible.
Possible second Texas project
The company said there were other projects that caught their attention as interesting projects, which they plan to attempt in the near future.
These include the “Morgan’s Wonderland Tunnel” in San Antonio, as well as the “Hendersonville Utility Tunnel” in Tennessee.
The Source: Information in this article comes from The Boring Company.
Texas
Texas will require proof of legal immigration status for professional licenses
People seeking a host of professional licenses in Texas, from electricians to dog breeders, will soon have to prove they are in the country legally after the state’s Commission of Licensing and Regulation on Tuesday adopted a new rule that could affect thousands of workers.
Commissioners unanimously approved the change after hearing from a parade of speakers who largely asked them to do the opposite because of worries that it will hamper the state’s economy and burden immigrants trying to make an honest living. The speakers also argued the move will push people to work without a license, and erode state oversight of crucial industries.
The commission oversees the Texas Department of Licensing and Regulation, which plans to implement the rule May 1.
“TDLR has long been evaluating verification of license eligibility in line with federal law. With the transfer of the Texas Lottery to TDLR, the recent launch of our licensing system modernization project, and increased focus on combatting human trafficking, the department is moving forward with lawful presence verification,” Caroline M. Espinosa, a TDLR spokesperson, said Tuesday. “This ensures consistent, secure practices across all programs and strengthens our ability to identify and deter fraud, labor exploitation, and human trafficking.”
Despite the agency’s stated intent to follow federal statute and the concerns raised by workers across the state, TDLR lawyer Derek Burkhalter told commissioners that some noncitizens will still be able to get licenses — so long they meet one of the qualifications under a three-decade-old federal law underpinning the rule change and provide required documentation.
People can qualify for benefits under the federal law if they were granted asylum, admitted as a refugee or are recognized as a victim of human trafficking, for example.
“The proposed rules do not impose a citizenship requirement,” Burkhalter said. “Individuals who are not U.S. citizens may still be eligible for licensure if they meet the eligibility criteria.”
TDLR argues that the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 prohibits people in the country unlawfully from receiving certain benefits, including professional licenses administered by the state, unless they qualify for certain exceptions. The lists of documents that can be used to apply for a license will be posted on TDLR’s website, officials said Tuesday.
TDLR joins at least three other state agencies that have cracked down on immigration through administrative and regulatory procedures since President Donald Trump returned to the White House last year. The Texas Department of Public Safety has stopped issuing commercial driver’s licenses to many noncitizens, the Texas Department of Motor Vehicles imposed new strict photo ID requirements for vehicle registrations, and the Texas Secretary of State’s Office has been on the hunt for noncitizens registered to vote, at times erroneously flagging Americans as potential noncitizens.
The changes mirror a presidential executive order from February 2025, when Trump ordered federal agencies to crack down on the same 1996 law to “defend against the waste of hard-earned taxpayer resources, and protect benefits for American citizens in need, including individuals with disabilities and veterans.”
It remains unclear how many undocumented workers will be affected in Texas by the new licensing requirement. The state is home to an estimated 1.7 million people without authorization who work in numerous key industries such as construction, hospitality and an assortment of others under the purview of TDLR.
Steve Bruno, the agency’s deputy executive director for licensing and regulatory services, told commissioners that fewer than 2% of the licenses issued by the agency did not have a Social Security number attached to them.
But TDLR could not assume those individuals were running afoul of federal law, agency officials said, because there are a number of ways for noncitizens to live and work in the country through federal programs.
The agency issued more than 1 million individual and business licenses during the 2025 fiscal year.
TDLR’s website currently contains guidance to apply for occupational licenses for those who do not have a Social Security number. The page links to a form, last updated by the commission in January, that instructs applicants to attach supporting documentation, such as a green card, immigrant visa or refugee travel document.
To offer commissioners context, Bruno said the agency had issued roughly 19,000 new licenses and renewed another 39,000 in February alone.
The information did little to assuage concerns from a variety of industries.
Agency officials received 450 comments about the proposed rule; of those, all but 28 were against it.
Among those who testified in person Tuesday morning was Rocio Gomez, a 35-year-old Austin resident who holds an eyelash extension specialist’s license and instructs at a beauty school in the capital city. Some of her students without legal status have been in great distress since the agency proposed the rule in January, at times crying to her about the uncertainty of their future, she said in an interview after testifying.
“Seeing how this has affected the students affects us too, emotionally. It appears that everything is at the whim of them,” Gomez said in an interview in Spanish, gesturing at the dais where the commissioners sat.
Other speakers — salon owners, educators and beyond — reminded commissioners about the strict requirements already in place to earn some licenses. Industries that will be affected range from dyslexia therapists to used car parts recyclers to dog breeders, according to TDLR’s proposal filed with the state.
Some of the licenses require many hours of practice and safety education. For instance, earning a cosmetology operator license in Texas can take more than a year as applicants learn about chemicals and hygiene as well as hair technique.
In barring undocumented people from getting licensed, the state will force them into the black market and lead to a proliferation of people providing services without oversight or proper permitting, speakers told commissioners.
The issue has already captured the attention of elected officials and immigration hardliners, who welcomed the new rule.
“For too long, benefits to illegal aliens have served as a magnet to entice migrants to enter the United States illegally,” Andrew Mahaleris, a spokesperson for Gov. Greg Abbott, said in a statement after the vote. “Texas will not reward illegal immigration by issuing professional licenses to those here unlawfully. These changes protect the integrity of our licensing system, uphold federal law, and ensure jobs go to hardworking Texans.”
State agencies must run proposed rule changes by the governor’s office before they are made available for public comment.
Democratic state Sen. Sarah Eckhardt of Austin, who is running for comptroller of public accounts, submitted a comment to TDLR in opposition to the change. Using published estimates by a variety of groups, the senator calculated that the rule change could result in a reduction of the state’s skilled workforce by 8 to 10%.
“Texas cannot afford to lose qualified and skilled licensees in these high-demand jobs,” Eckhardt wrote, urging the commission to study the potential effect. “The impact of TDLR’s proposed rule is likely more far-reaching than what was initially assessed by the agency.”
In their formal rule proposal filed with the state, agency officials wrote that there would be no anticipated economic impacts or effects on small and microbusinesses. In response to questions about this on Tuesday, they told commissioners that it was difficult to assess potential impact because they did not want to assume a licensee was afoul of federal law simply because they did not provide a Social Security number.
Commission Chair Rick Figueroa asked for frequent updates to the commission as the rule is implemented, acknowledging the agency was entering uncharted territory perhaps only in the company of the Department of Motor Vehicles, which made its change months ago.
“This is a front-burner issue in regards to information back to the commission,” Figueroa said. “I’m sure we’re building a plane and flying it a little bit.”
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