Two aging natural gas-powered plants in San Antonio are scheduled to retire later this year, raising significant reliability concerns for the area’s power grid. Nathan Bigby, Chief Regulatory Counsel for the Electric Reliability Council of Texas (ERCOT), highlighted the potential risks during the ERCOT board of directors meeting. He explained that the closure of these plants could lead to overloading transmission lines that carry power from South Texas to the San Antonio region, creating serious reliability issues that could lead to cascading power outages if not addressed.
To mitigate this risk, ERCOT plans to move 15 large generators, currently leased by CenterPoint Energy in Houston, to San Antonio. This transfer is expected to cost $54 million, a figure that ERCOT leaders believe is more cost-effective than continuing to operate the aging plants. The decision to move the generators was based on an analysis that showed the cost of maintaining the plants would amount to around $59 million. The move will result in a modest 0.4% increase in electric bills for San Antonio residents, which ERCOT leaders argue is a small price to pay to avoid the potentially much higher costs associated with widespread power outages.
While this solution is seen as a necessary short-term fix, it is only a temporary measure. CPS Energy, San Antonio’s municipally-owned utility, is working to expand its transmission infrastructure, but the project will take several years to complete. In the meantime, ERCOT officials emphasize that the generators will help reduce the likelihood of load shedding, providing a crucial buffer against power disruptions in the area. Bill Flores, Chair of the ERCOT Board of Directors, reinforced that the move is necessary to bridge the gap until long-term transmission upgrades are finished.
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