Changes will be needed in the Texas electricity grid if it is to be able to keep pace with demand in the near future. The recent period of low electric rates experienced by Texas consumers and the poor economy have contributed to a situation where there is some concern about the state’s ability to keep up with future electricity demand.

Texas electricity grid

The situation is made worse by looming EPA regulations which, according to ERCOT, will result in many of the states older gas burning power plants being shut down. Because Texas has deregulated its electricity market, power producers decide when, and if, to build power plants based on market conditions. The low electricity prices, along with the uncertain economic situation, have made it unprofitable and too risky for power producers to build new plants right now.

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