The nation's first new commercial coal-fueled plant capable of capturing carbon dioxide emissions is in the early proposal phase to develop a nearly 2,000 acre section of land in Sweetwater, Texas. Tenaska, an Omaha energy company, has filed an air permit with the Texas Commission on Environmental Quality (TCEQ) according to company officials, which is the first step in the process of gaining approval to begin construction on the $3 billion project.

Up to 90 percent of the CO2 would be captured, sold and transported through pipelines to the Permian Basin, where advanced oil recovery projects could utilize the stored gas to recover significant amounts of additional oil for the Texas market, a common practice in the Texas oil industry for more than 30 years. But how would a clean-coal power plant affect Texas electricity?

The 600 megawatt facility could potentially power 600,000 homes, though environmentalists have staunchly opposed building any additional coal-fueled power plants. The concern isn't necessarily focused just on the potential emissions from burning the fossil fuel, but also the environmental implications of storing and mining—including pollution of water, depletion of water supply and destruction of land to name a few. If approved, which will be in 2009 at the earliest and Tenaska won't conclude construction until 2014. Legislative and environmental battles may delay any development plans in the near future, pushing the probable time line even further away.

For more information, please see the Tenaska newsroom for updated press releases and information.

An influx of gas supply to Texas power plants could stall price fluctuations in 2008 for Texas electricity customers. New natural gas pipelines in Colorado and Louisiana are a key factor in slowing down price increases, as the U.S. Department of Energy estimates a 0.7 percent increase in retail electricity rates. 2007 alone saw a 3 percent increase in Texas, but the increased gas supply couple with milder weather has predictions showing a smoother 2008 for Texans. Considering nearly 47 percent of Texas power plants are gas fired, the pipeline ventures could be a significant factor in helping dampen prices.

For more in formation: See this article in the Houston Chronicle

Texas electricity is growing by leaps and bounds. Texas and Mexico recently cited the importance of working together to increase future developments in the energy industry, specifically the importance of expanding oil and gas pipelines between both areas, and combining powers to help in the development of wind power.

Mexico is currently the third largest exporter of oil to the U.S., and approximately 70 percent of gas produced in Texas comes from Mexico. Perhaps the most intriguing aspect of this proposed partnership is the opportunity to increase the wind capacity in the U.S., which is quite possibly a significant increase considering the relatively untouched wind capacity in Mexico, and the annual growth of wind power in Texas.

For more information on future developments in the oil and gas industry, check out the The Oil, Gas and Energy Law Symposium's web site.

According to our friends at the American Wind Energy Association (AWEA)—and this isn't just hot air folks—more than $9 billion in investments helped the nation's wind capacity grow by 45 percent in 2007.  

More cheers are in order for Texas once again (go ahead and throw out a random holler; it's really uplifting) as Texas electricity customers can hang our collective hats on the fact that our state continues to lead the rest of the pack in wind energy production. The Lone Star state increased wind capacity by an impressive 57 percent, from 2,768 megawatts to 4,356 in just one year.

Oh and by the way, Texas has more than 1,200 megawatts of wind power in construction. Can I get a booyah?

The days of old are parting ways for an exciting new product in the energy industry. The smart meter is a new technology that will provide the following enhanced services for Texas electricity customers:

• Access to energy use information 24 hours a day

• Improved outage detection and faster restoration

• More flexible services when the customer wants them

• Reducing the need to access the customer’s property

 
What does it do?

In simple terms, it communicates and transmits—in a wireless and automatic fashion—energy use and information, allowing a two-way communication between the customer and the energy provider.

 
Why is it beneficial to the customer?

• It provides customer with detailed energy use and information and allows the customer to reduce their energy usage. A smart meter can be shut off during peak hours when the customers are not home.

• It improves the detection of power outages, aids in restoration and can even provide the customer with energy usage patterns.

• Certain companies will provide customer rebates for using the smart meter.

• Meters will no longer have to be read in person. This provides additional privacy at the customer’s home and eliminates human errors.
  

 
Some deregulated electricity companies are currently utilizing the smart meter, and close to 7,200 businesses already use it as well, but it will take some time for the regulated market to jump on board. This is due to the cost of the equipment and determining exactly who should be responsible for the cost of the meter.

HelioVolt Corporation, a company devoted to providing solar technology for the mass market, is building a factory to produce it's solar energy products sometime in 2008. The new Austin facility will utilize HelioVolt's FASST technology, a manufacturing process including a patented "solar skin" that claims to be many times thinner than silicon, and a faster production process. The solar skin allows commercial-scale projects to hopefully become a widespread reality. This could be huge for Texas electricity customers.

What makes this development a possible green TKO in the long-term bout against global warming, is the potential for producing more cost-effective solar technologies, a renewable energy that has remained out of price range for many. If HelioVolt can live up to it's claims of production that is 10 to 100 times faster than traditional solar processes, then Texas may see viable options for solar architecture within the next decade, possibly matching the impressive wind portfolio that the state already has.

According to a recent article in the Austin Business Journal, mayors from Austin, Dallas, El Paso, Houston and San Antonio are preparing for a major switch to help alleviate some energy strains for Texas electricity customers. The compact florescent lights (CFLs) will help Texans use 75 percent less energy to light their homes, a switch that is prompting the five mayors to designate the CFL as the "state bulb."

CFLs are unique in their design and performance, lasting up to 10 times longer than traditional, incandescent bulbs, and coupled with the savings in energy use, the CFL could save more than $30 over the lifetime of each bulb. As Texas homes make the switch, the cumulative effects over time could be astronomical, as the Environmental Protection Agency and Department of Energy have estimated that using one CFL in every home could save more than $600 million annually.

The designation of a state bulb is a part of a push by Texas to increase its overall energy efficiency, where as of now the state ranks 11th according to the Natural Resources Defense Council.

For additional information on the proposed switch to CFLs, please see this article in the Austin Business Journal.

A recent article in the Austin Business Journal announced that Austin Energy's Sand Hill Energy Center—in eastern Travis County—will undergo $60 million in expansions. The planed expansion comes in the wake of recent news that Holly Power Plant in East Austin will close in late September.

Two 50 megawatt turbines will be added in the next two years, with the modified 747 jet engines generating power in about 10 minutes for electricity demand peaks during inclement weather. The plant's total load capacity will subsequently increase from 180 to 280 megawatts, bringing the Sand Hill Center's total capacity to 580 megawatts; a significant increase that is capable of powering 435,000 homes.

The expansions are covered by Austin Energy's capital reserves, so there is no concern for rate- plan increases. Since peak demand in Austin leaves only 17 percent in the energy reserves, the expansion should add to the total energy capacity of 2,900 megawatts that Austin Energy currently has.

It's summer in Texas and the temperatures are soaring again. As Texans rush to beat the heat, the additional electricity needed to power air conditioners, fans, and other appliances puts a greater strain on the electricity grid and their wallets.

To help everyone use electricity more efficiently as well as lower bills and reduce strain on the electric grid, the Public Utility Commission (PUC) created PowerfulAdvice, color-coded system designed to alert Texans about current conditions on the Electric Reliability Council of Texas (ERCOT) grid.

"PowerfulAdvice is a helpful tool for Texas electric customers as we face the hot summer," said PUC Chairman Paul Hudson. "Customers can get money-saving advice and help ensure a sufficient electricity supply for our growing state."

To monitor the alerts for yourself, check out the PUC PowerfulAdvice page.

For customers concerned about the recent buyout and how it will effect them, TXU released a statement yesterday outlining how the company's pricing will be changing in the near future:

"As a result of the merger transaction with KKR and TPG, TXU Energy will provide a 10 percent price reduction for residential customers in its traditional service area who have not already selected one of TXU Energy's lower priced offers. Additionally, TXU Energy customers entitled to receive the two remaining customer appreciation bonus payments of $25 per quarter will receive those payments."

"Customers will begin receiving 6 percent of the 10 percent reduction in approximately 30 days with the additional 4 percent reduction at the close of the transaction."

For more information, check out TXU to Set New Direction as Private Company.

According to The Houston Chronicle, two Texas legislative committees will hear from electricity retailers, regulators and others this week regarding the current state of power deregulation.

The newspaper says that Texas Public Utility Commission Chairman Paul Hudson is expected to speak, along with representatives from the three largest power retailers in the state—TXU Energy, Reliant Energy™ and Direct Energy—and consumer advocates. The meeting is apparently in response to this year's run-up in power prices in Texas. The Chronicle is speculating it may be a sign that lawmakers will consider making changes to Texas' electricity market rules.

For more information, check out the full article Lawmakers will meet on power deregulation.

We posted about the new warning system for the condition of state's power grid last month. Due to the continuation of high temperatures throughout the state, the alert has stayed primarily on yellow indicating that conservation is needed.

On yellow days, extra conservation measures are urged because of a chance that electricity shortages may occur during the peak usage hours. A Yellow Alert will be declared for days where temperatures statewide are expected to be extremely hot, leading to record or near-record electricity consumption. The Yellow Alerts are also declared if some combination of unexpectedly high electricity demand and unexpected outages of power plants occur and cause a greater than normal chance of shortages. Consumers are encouraged to reduce their electricity use as much as possible during the peak electricity usage hours from 3:00 p.m. to 7:00 p.m.

Tips to follow during Yellow Alerts include turning off all unnecessary lights and electronic equipment. If you are home during the peak period, close blinds and drapes that get direct sun, set air conditioning thermostats to 78 degrees or higher, and use fans to cool the air. PowerfulAdvice also suggests not using your dishwasher, laundry equipment, hair dryers, coffee makers, or other home appliances during those peak hours, and setting your pool pump to run in the early morning or the evening.

Visit the PowerfulAdvice alert page for more energy saving suggests and to see the current alert status.

CenterPoint Energy Houston Electric, a unit of CenterPoint Energy Inc., announced last week that it has reached a settlement in a rate case before the Public Utility Commission of Texas. The settlement will reduce the company's electric base rate revenues by $58 million per year and will commit CenterPoint Energy Houston Electric to increase its energy efficiency spending by $10 million annually. The settlement also freezes electric delivery rates until June 30, 2010. In addition, CenterPoint will fund $10 million per year for programs providing financial assistance to qualified low-income customers in its service territory. The company expects to implement the new base rates, to increase its energy efficiency spending and to begin the agreed funding for financial assistance programs later this fall, following approval of the settlement by the PUC.

Read more about CenterPoint Energy in their company newsroom.

According to the American Wind Energy Association's Second-Quarter Market Report, Texas' cumulative wind power capacity total now stands at 2,370 megawatts—enough to power more than 600,000 average American homes—followed by California's 2,323 megawatts. Texas edged ahead of California by adding a total of 375 MW, about half of the total amount installed in the country since the beginning of the year. California had previously led the nation unterruptedly for nearly 25 years, at one time hosting more than 80 percent of the wind capacity in the entire world.

Texas had slowly been creeping up on California these last few years, so taking the top spot was inevitable, wind energy consultants say. Mike Sloan, president of Austin-based Virtus Energy Research Associates, estimates about $2 billion will be invested in wind energy development statewide this year and about $4.5 billion nationwide. "Wind energy is a prudent hedging vehicle," Sloan said. "So many policy leaders around the country see the importance of energy diversity and how homegrown renewables make a lot of sense."

Next, Texas wants to be home to more than just the place with the most wind energy generation capacity, said Jerry Patterson, the state's land commissioner. Patterson said he believes Texas can be an industry hub, just as it has been for oil and natural gas. "We want this to be the place where the industry grows, where companies manufacture and assemble wind turbines," he said. "We have the skilled workforce and the locations to accomplish this."

TXU Energy announced this week that they are committing $300,000 to Dallas and Tarrant County communities to assist them in preparing for special heat-emergency programs. An extension of TXU Energy's "Check on Your Neighbor" program that assists customers during the summer's high temperatures, the money will go toward providing services such as cooling-off shelters in recreation centers, overnight shelters, an emergency hotline, transportation to shelters and provision of fresh water and ice.

"We are in the midst of a typical hot Texas summer, and our friends and neighbors will rely upon us for help during these 100-plus degree days," said Zach Thompson of Dallas County Health and Human Services. "It's through programs like TXU's Energy Aid and donations from companies like TXU Energy that we are able to provide these needed services."

TXU Energy made a commitment in 2004 to provide $15 million over three years to assist families who have difficulties paying their electric bills. Additionally, TXU Energy made another commitment to provide up to $25 million in discounts for low-income customers during all of 2006. In 2005, TXU Energy donated more than $2.9 million in TXU Energy Aid funds to selected service agency partners in Dallas County and Tarrant County.

As Texas continues to set records for electricity usage, the state's Public Utility Commission launched PowerfulAdvice, a new Web-based color-coded warning system to alert Texans about the current condition of the state's power grid.

The system uses three color codes green, yellow and red to signify the state's increasing demand for electricity and the likelihood of an electricity emergency.

Green Days
No electricity emergency is likely, but normal conservation measures are recommended.

Yellow Days
Extra conservation measures are urged because of a chance that electricity shortages may occur during the peak usage hours.

Red Days
Conservation is critical because there is a higher probability of involuntary outages during the peak hours of 3:00 p.m. to 7:00 p.m. to prevent uncontrolled rolling blackouts.

PUC is already calling for more conservation this week by declaring a yellow conservation alert in anticipation of more record electricity demand.

"PowerfulAdvice is a helpful tool for Texas electric customers as we face the hot summer," says PUC Chairman Paul Hudson. "Customers can get money-saving advice and help ensure a sufficient electricity supply for our growing state."

Click here to learn more about PowerfulAdvice and PUC's tips for conserving energy.

The recent heat wave has pushed state electricity demand to record levels, but officials said Texans shouldn't fear a repeat of April's rolling blackouts.

"We are prepared for hot temperatures and high demand in the summer," said Dottie Roark, spokeswoman for Electric Reliability Council of Texas, which oversees the power grid for most of Texas. "We don't expect any problems."

Electrical demand is at all-time highs, with last Monday's peak-hour electrical demand breaking all records for July. Then Tuesday and Wednesday each broke the previous day's record. Temperatures again surpassed 100 degrees Thursday across much of Texas, but Wednesday's record was not broken.

The blazing heat is expected to effect the state for at least the next 10 days, prompting the Texas Department of State Health Services to warn people to cool their homes and seek air-conditioned public places.

The Public Utility Commission of Texas created a high-quality Web site that you should look at if you would like to find out more about electricity providers in Texas. The Web site, Texas Electric Choice, has articles on how to compare offers between electric providers, facts on electricity, a glossary of electricity terms and several other topics that can help you make a good pick when choosing your electricity provider.

Do you think changing your electricity provider would be too much of a hassle? On the Houston Consumer Choice Web page in their Urban Myths section you will find out that this belief is not true. You can use ElectricityTexas to switch your provider in less than 10 minutes. To find out more about this and other myths, you should check out the Residential Electricity Urban Myths site.

A great Web site you can go to in order to find out more information on electricity in Houston is Houston Consumer Choice. The site has a large glossary of electricity terms so that you can make sure you understand your choices.

In its strictest sense, deregulation is the removal of rules or regulations. Electricity deregulation was sought to aid competition among electricity providers. With the Energy Policy Act of 1992, Congress wanted to promote greater competition in the bulk power market. Through this act, states were allowed to restructure their electric power industry to create more competition. As states across the nation adopt deregulation, they are experiencing varied amounts of success. Texas has had a great deal of success with deregulation.

ElectricityTexas allows customers to compare and order Texas electricity service online. Read more about the providers (like Reliant™, TXU Energy, Green Mountain, First Choice Power and more). See who's available in your area by visiting ElectricityTexas.com and entering your address.