ERCOT -- Again -- July 21, 2022

I don't watch network news any more -- in fact, I don't watch "networks" any more at all -- mostly just Hulu and TCM (the latter carried by Hulu) -- so I would not have seen this.

But according to the reader:

"The ladies this morning on NBC about fell over themselves when noting that Texas used more electricity that either New York state or California."

"The ladies" must be the news reader and the anchor over at NBC's morning show -- I've long forgotten the name -- oh, that's right: "The Today Show"?

In passing, apparently, it was mentioned that some of the Texas electricity demand was from industry -- a very small amount -- but it was the HEAT caused all the electricity demand. 

That would be correct. It's July in Texas. August comes next. Even the Texans complain about the heat during July and August. It happens every year.

But whether it's 100° or 105° would that really change anything? Of course, whether it's 100° or 105°, the folks would be running their air conditioning.

So what changed? Faster growth than ever expected, both residential and commercial.

Individuals are streaming in from California and to some extent from New York (most New York emigrants head to Florida on southbound I-95). Businesses are flocking to Texas. Most recently: Caterpillar.

One big "problem": cryptomining probably explains 90% of the demand problem for ERCOT.

The cost of electricity in Texas is not the issue: it will average out over the full year.

What matters in Texas is "maintaining" the grid, not the cost of maintaining the grid.

All eyes are on Texas. The East Coast and West Coast are hoping that the grid fails. They keep bringing up the winter storm in 2021 when things did freeze up. That was bad. Very bad. Won't happen again.

But comparing winter freeze with summer heat are two entirely different things. The winter freeze was catastrophic shutting down power for days (weeks in some cases) whereas if the "grid fails" in Texas in the summer it will be for an hour or so, and it will mostly handled with "brownouts" and rolling blackouts. It will be an irritant but not a catastrophe. 

In Texas, it's a DEMAND problem, not a SUPPLY problem.

In New York and New England, it's a SUPPLY problem, not a DEMAND problem. 

Yeah, it's a nuance. 

In Texas: stop cryptomining for a couple of hours and there is plenty of electricity.

In New England: building some natural gas pipelines from Pennsylvania and there will be plenty of electricity. But apparently, New Englanders prefer burning oil to meet energy demands.