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Long-discussed plans to connect ERCOT power grid to other states draw new attention

Two proposed projects would allow Texans to draw some power from other states, but ERCOT would retain independence and evade federal oversight.

TARRANT COUNTY, Texas — A pair of proposed projects would allow Texas to draw more power from other states during periods of high electricity demand or inclement weather.  

The Dallas Morning News Monday highlighted one such proposal, prompting renewed interest in the long-discussed plans. 

Energy experts say connecting more out-of-state generators to electricity distributors in Texas would improve grid reliability and, eventually, save consumers money. 

"Winter Storm Uri showed us how many problems we have with our grid," said Texas Consumer Association president Sandra Haverlah. "This is just one way to provide that security." 

Texas's power grid operator, ERCOT, maintains independence from the national grid to evade federal oversight. Electricity traded across state lines is subject to interstate commerce laws, so Texas does not allow distributors to "plug in" to neighboring states. 

There is an exception, however. 

Electricity that crosses state lines through a direct current, rather than an alternating current, does not trigger federal scrutiny. 

"It's a very limited type of connection so the rules over that type of connection are different," Haverlah said.

Texas has four such interconnections that exchange power with the East, North, and with Mexico. Combined, these ties carry about 1,200MW, enough to power about 240,000 homes on a hot day. 

"It's not very much, compared to how much electricity we use," UT Energy Researcher Joshua Rhodes said. "But we do use them from time to time to help us out."

The proposed projects would follow suit, though they'd carry more power. 

Pattern Energy's Southern Spirit Transmission lines would run from eastern Texas through Louisiana into Mississippi. Researchers believe the lines could carry as much as 3,000MW, enough to power about 600,000 Texas homes on a hot summer day. 

"Southern Spirit Transmission will fundamentally serve as 'ice storm insurance' for Texas, providing back-up power to ERCOT in times of high energy demand," Pattern Energy, the project's architect, wrote in a statement to WFAA. "Southern Spirit was granted Federal approval to preserve ERCOT’s independence. It will bring significant reliability and economic benefits by connecting two robust systems, create thousands of jobs, and allow Texas to export surplus renewable energy to southeastern states."

A similar proposal, Pecos West, would run transmission lines from Bakersfield, Texas to El Paso, which is outside the ERCOT region. Though estimates vary, Rhodes says these lines could also carry as much as 3,000MW. 

Rhodes noted that, combined, the lines would not carry enough power to keep up with the current electricity demand increase. Texans required about 6,000MW more power in 2023 than they did in 2022. 

"That doesn't mean it's not valuable to the system," he said. "But it's not going to be the entire thing we're relying on." 

Plans for both projects are far from final and there are more hurdles to clear. The private entities that want to string the lines must assess the project's environmental impacts and acquire land for construction. 

Discussion about each idea began years ago, but each company aims to complete its projects by 2029. 

"Since Uri, reliability has really been the name of the game," Rhodes said. "Any amount of new capacity that can be built is getting more attention in the energy space within Texas."

"This is a good way for ERCOT to show that they are attempting to cover all the bases," Haverlah said.

Texas power generators would also use the lines to sell excess power to distributors in other states.

Consumers could benefit, too, because such interconnections allow their providers to buy wholesale electricity at cheaper rates. If electricity is cheaper at a given moment in Mississippi, for example, Texas distributors would be able to purchase that electricity rather than paying through the nose for locally produced power. 

"It kind of broadens the market, if you will," Rhodes said. 

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