APA Leadership ensuring that the voice of the advanced power generation
and energy storage industries is heard inside the region’s state capitols.
Advanced Power Alliance Vice President Judd Messer today provided written testimony to the Texas Senate Committee on Business and Commerce.
On behalf of APA’s diverse membership with investments across the power generation and advanced power technologies portfolio, Messer urged:
As the ERCOT grid continues to evolve, there is a need for market policies that focus less on how resources perform individually, and more on how resources most effectively work together.
A grid that recognizes the complementary strengths of low-cost renewable resources and battery energy storage, leverages these resources alongside a robust fleet of thermal power, and makes forward-looking investments in its transmission system is the most efficient way to achieve maximum reliability at an affordable cost.
The Committee has received interim charges from the Lieutenant Governor. APA’s public affairs team will continue to work with the leadership and members of the committee as they conduct their review of the issues under their oversight including:
- Electricity Market Design: Assess state efforts to provide incentives for new thermal generation. Review and report on the state of the electricity market in Texas and issues impacting the reliability and resiliency of the Texas electric grid. Consider rulemaking related to wholesale market design, including the impact of these changes on grid reliability, market revenues, costs to consumers, and the efficiency of operations. Examine and report on the direct and indirect impacts that variable resources, such as wind and solar, have on grid resiliency, consumer prices, and market uncertainty. Monitor the implementation of House Bill 1500, 88th Legislature.
- Innovative Power Generation: Explore emerging technologies with the potential to add new dispatchable power to our electric grid including, but not limited, to small modular nuclear reactors, advanced batteries, and new developments in hydrogen and geothermal resources. Identify and recommend regulatory and policy actions required to deploy emerging technologies within the state’s electric grid.
- Transmitting Texas Power: Identify the future electric transmission and distribution system needs of the state and recommend ways to reduce barriers to constructing the necessary electric infrastructure to support the growing demand and changes in technology. Review and make any necessary recommendations to enhance legislation passed during the 88th legislative session, including the status of projects to improve the safety and resiliency of the transmission system, as well as the effect of current and future projects on consumer costs.
- Managing Texas Sized Growth: Evaluate the state’s ability to keep pace with increasing electricity demand related to population growth and energy intensive technologies such as electric vehicles and data centers. Recommend ways to increase reliability via demand-side response programs. Study ERCOT’s forecasting methodology and recommend ways to increase transparency. Monitor ongoing efforts at the Public Utility Commission related to energy efficiency programs and distributed energy resources, including the implementation of Senate Bill 1699, 88th Legislature.
- Impact of Bitcoin Mining on the Texas Electric Grid: Study the impact of energy-intensive cryptocurrency mining facilities on the Texas electric grid. Report on whether any changes should be made to ERCOT demand response programs and large flexible load registration requirements to limit the impact of these facilities on system reliability and consumer costs.
- Addressing the Rising Cost of Insurance: Assess the impact of rising property and casualty insurance costs on Texas property owners, real estate lenders, and commercial and industrial development. Identify ways to increase consumer transparency to better inform coverage decisions and make recommendations to ensure a competitive and affordable insurance market for consumers.
- Artificial Intelligence: Examine the development and utilization of artificial intelligence (AI). Evaluate the implications of AI adoption across the public and private sectors. Make recommendations for a responsible regulatory framework for AI development, including data privacy, industry standards, consumer protections, risk mitigation, and compliance processes. Propose any necessary changes to state law to protect the Texas radio, television, music, and film industries against unauthorized use by AI. Monitor the findings of the Texas Artificial Intelligence Advisory Council.