Texas Power Grid Strains: Consumers Urged To Cut Back Energy Use During Heatwave

Zinger Key Points
  • ERCOT urges energy conservation amid Texas' extreme heat wave.
  • Generac Holdings could profit from Texas' ongoing power uncertainty.

ERCOT, the Electric Reliability Council of Texas, which operates the Texan power grid, asked customers to voluntarily cut back on energy consumption as a heat wave brings temperatures into the triple digits for many throughout the state.

Around 90% of the power used in Texas is scheduled through the ERCOT grid, according to the Dallas Morning Star. 

Texas is the only state in the continental United States with its own power grid. In fact, there are only three major power grids in the United States: The Western interconnect, the Eastern interconnect and the Texas interconnect.

Read Also: Texas Still Reeling As Country, Companies And Traders Assess Damage From Winter Storm's Strike On Energy Grid

Texas is able to run its own power grid because of the state’s vast access to energy resources, including oil, wind, solar and more. But, because Texas is on its own grid, when extreme weather conditions arise, increased demand for power can cause restraints and even outages. 

In February 2021, a cold front in Texas brought abnormally low temperatures and caused massive power outages. In fact, at one point, more than four million Texans were without power. Energy prices during catastrophic events skyrocket, making it hard for everyday families to afford basic power.

Some companies could benefit from the uncertainty in Texas. One such company is Generac Holdings Inc GNRC, a manufacturer of generators that people can use to power their homes during natural disasters and other and other power outage events.

Now Read: Protecting The Electric Grid: NASA's Parker Solar Probe Unveils Solar Wind Origin

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