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The Climate Prediction Center says there is now a 50/50 chance of a return to La Nina conditions this fall.

La Nina is an expansive area of cooler-than-normal water in the Pacific Ocean. This cooling alters weather patterns across the U.S., and almost always results in drier than normal conditions for Texas and most of the South. And, when we’re drier than normal, we tend to be hotter than normal.

This is very bad news for Texas, as the 2010-11 La Nina is the reason for our existing drought and heat wave. Think the drought and summer heat is bad now (the Mid-West and East had a heat wave, what we are having is a heat tsunami), if we have a 2011-12 La Nina, this drought could reach epic proportions by next summer.

The PUC wants to have a meeting at the end of August to try to figure out how to fix Texas’s experiment of a deregulated generation market, as we look like we are going to run out of energy during what could be ever increasing hot summers.
It seems the current market based behavior doesn’t send proper signals to companies to build new generation.
In addition our grid was designed to be almost completely isolated from the rest of the country so we cannot get help if its needed and available.
Generators use old, outdated generation to reduce costs and even turn off environmental controls to further lower costs at the expense of citizens health and to maximize profits.
The “new” market is based on scarcity pricing but if generation is truly scarce we have rolling blackouts, which are devastating to the economy and kill people.
Before deregulation the Utility commission would request new generation be built in a certain time frame and capacity and pay a preset profit margin to the companies that participated. They did the same thing with transmission lines and retail costs.
These are critical infrastructure needs and were protected from the swings of the financial and other markets. The process was covered under the term Total Resource Planning.
Now with the current heat wave and over a decade of deregulated markets we face the possibility that there will not be enough generation to meet the needs of Texas. We have many old and highly polluting plants that resemble the old steam locomotives of the 1800’s carting around a bin of coal to burn rocks and boil water. A larger amount of our critical infrastructure also consists of ancient natural gas “steamer” plants that are only run around 400 hours a year and are also highly polluting and have proven not to be very reliable but highly profitable.
Compare that to the newer generation of combined cycle gas turbines that resemble a jet engine and have several additional generators attached to it to recover the excess heat to generate even more energy with low stack emissions.
We have harvested significant amounts of non-polluting wind energy (coastal wind is over-performing expectations during the current crises) but the majority is located in just one region (West Texas) leading to problems of transmission congestion and generation variability. Some progress has been made on building wind projects in the areas along the Texas coast that provide energy much closer to the time that its needed, but more needs to be done.
Texas has made very little progress on adding an solar generation (that would provide energy when its needed most) because of a lack of policy leadership at the legislature and the PUC.

Now the PUC wants to tinker with the market to see if it can artificially raise the price of energy by using a “proxy” price as in “we will pay you more because our market system isn’t working, so pretty please build some new generators”.

This is a hell of a way to provide the resources that Texans need. Its time to get rid of the old smoking wreaks of generation plants that are carrying the load, sucking up our ever shrinking water supplies and fouling our air, and go to a controlled “regulated” modernized generation plan that uses all our resources with the least impact to our health, environment and wallets.
We used to pay a fair price for services delivered, now we just pay and hope the lights stay on.

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By promoting cleaner energy, cleaner government, and cleaner air for all Texans, we hope to provide for a healthy place to live and prosper. We are Public Citizen Texas

As temperatures soared yesterday, ERCOT estimates that electricity usage reached an all-time peak high (breaking Wednesday’s record) with Texans using 60,157 MW of power – flying past the official record set on August 31, 2000 when 57,606 MW of power was consumed by Texans in the ERCOT service region.

“Texas is experiencing a very serious energy emergency,” said David Power, Deputy Director of the Texas office of Public Citizen, “and we are urging everyone to shut off any unnecessary appliances to conserve energy.”

For tips on how to conserve energy, go to http://www.texasishot.org/.

Tom “Smitty” Smith, the Director of the Texas office of Public Citizen applauds the Electric Reliability Council of Texas (ERCOT)’s heroic efforts in keeping the lights on under enormous stress. “They are doing a great job, however without the assistance of all Texans in conserving energy during this unusual heat event they may not be able to do so for long.”

This is a reprint of a post by Jake Dyer from the RechargeTexas.com blog

The rolling blackouts that swept through Texas last February have been blamed on the unexpected failure of generation plants. The temperature dropped during a cold snap, the plants froze up, and then — before anybody really knew what hit them — the lights went out.

And now we’re in the middle of another weather event – this time a heat wave – and just as before a large number of generation plants have failed. The loss of capacity during the February event sent wholesale electricity prices soaring to $3,000 per megawatt/hour, or more than 50 times higher than typical. The same occurred this week as well.

Clearly somebody is making money off the bad weather.  One expert, Oregon-based economist Robert McCullough, raised the possibility that there was  “artificially-created scarcity” last February. That’s regulatory lingo for market manipulation. Although not leveling any specific accusations, McCullough concluded that the cold weather alone could not explain the failure of the state’s power grid to operate reliably.

However, another expert,  the state’s independent monitor of the wholesale energy market, concluded the punishingly high price spikes in February were understandable, given the circumstances. He found no evidence of hanky-panky by electric companies.  Likewise, a federal report largely blamed the inclement weather, although it said plant operators could have done a better job.

This week’s event has not drawn such scrutiny. What’s clear, however, is that more than 20 generating plants unexpectedly failed during the middle of a heat wave. In February, 80 plants went down during a cold snap. Although the ERCOT grid operator hasn’t again ordered blackouts, the organization has taken other emergency steps this week. And if the situation gets worse, some businesses could have their power cut or there could even be more forced outages.

The fact that the lights went out in February prompted a statewide demand for answers.  If ERCOT is able to stave off rolling blackouts during this heat wave, it is unlikely that there will be a widespread outcry for a market manipulation investigation but Texans should be aware, that in a deregulated, market driven energy market, the potential for market manipulation is always there.

August 10 LCRA Board meeting canceled after White Stallion water contract pulled from agenda

Discussion and possible action by the LCRA Board of Directors on a contract to provide water to a proposed new coal plant in Matagorda County has been postponed indefinitely. This decision comes after the company proposing the plant substantially changed the terms of the contract on Monday, Aug 1st which prompted the cancellation of the special-called Aug. 10 meeting of the LCRA Board.

The new proposal by White Stallion asks for more time to pay the $55 million ($250,000 a year instead of $55 million upfront) and significantly reduces the amount of water reservation fees White Stallion would have to initially pay. The new proposal included other changes, some unprecedented for an LCRA water contract.

We say, good for the LCRA Board and thank you Senator Fraser for stepping in and asking the LCRA to call a moritorium on water contracts in light of this exceptional drought that blankets three quarters of the state.

Finally, thank you to the 2,200 Texas citizens who sent in cards and letters to the LCRA opposing this contract.  You made a difference.

Despite the fact that NRG/Toshiba (formally know together as NINA) has been unsuccessful in their multi-year efforts to expand by two units, the South Texas “Nuclear” Project (STP) – the process for their Combined License (COL) is proceeding. 

An Atomic Safety and Licensing Board (ASLB) panel will hear oral argument and conduct an evidentiary hearing, beginning Aug. 17 in Austin, Texas which will begin at 9:30 a.m. CDT, in Room 2210, Building F of the Campus of the Texas Commission on Environmental Quality, 12100 Park 35 Circle in Austin. The session is open for public observation, but participation will be limited to the parties admitted to the proceeding (Sustainable Energy and Economic Development Coalition, the South Texas Association for Responsible Energy, Public Citizen, the applicant – Nuclear Innovation North America (NINA) – and NRC staff).

The ASLB is the independent body within the Nuclear Regulatory Commission (NRC) that presides over proceedings involving the licensing of civilian nuclear facilities, such as nuclear power plants.

The South Texas Project COL application was submitted Sept. 20, 2007, the first such application in the United States in nearly 30 years.  STP was seeking permission to construct and operate two new nuclear reactors at the site near Bay City, Texas.  The ASLB granted intervenor status and an opportunity for a hearing to the Sustainable Energy and Economic Development Coalition, the South Texas Association for Responsible Energy, and Public Citizen. The groups have submitted objections, or contentions, challenging the COL application, most recently regarding the question of whether NINA meets NRC requirements prohibiting foreign ownership, control or domination of a nuclear facility in the U.S.

Over the past four years, this project has experienced:

  • An increase in their estimate to build the new units from 5.6 billion dollars to over 18 billion dollars
  • A major pull back by their local partner, San Antonio’s CPS from a 50% ownership to 7%
  • A struggle to find new partners with the only interest from TEPCO – the operators of the doomed Fukushima Dai-ichi plant and the Bank of Japan,
  • The melt through of the Fukushima Dai-ichi plant following the earthquake and tsunami that devastated Japan’s eastern coast and subsequently caused the meltdown of the nuclear industry throughout the world.

We would encourage any interested to attend.  Early arrival each day is suggested to allow for security screening for members of the public attending. NRC policy prohibits signs, banners, posters or displays in the hearing room at any time during the proceeding.

Individuals or groups not admitted to the proceeding can submit “written limited appearance statements” to the ASLB. Anyone wishing to submit a written statement may do so by email to hearingdocket@nrc.gov, by fax to (301) 415-1101, or by mail to: Office of the Secretary, Attn. Rulemaking and Adjudications Staff, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. In addition, copies of written statements should be sent to the Chairman of the Licensing Board by e-mail to Michael.Gibson@nrc.gov and Jonathan.Eser@nrc.gov; by fax to (301-415-5599), or by mail to: Administrative Judge Michael M. Gibson, Atomic Safety and Licensing Board Panel, Mail Stop: T-3F23, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.

Documents related to the South Texas Project COL application are available on the NRC website. Documents pertaining to the ASLB proceeding are available in the agency’s electronic hearing docket. More information about the ASLB can be found at the NRC website.

NOTE: Anyone wishing to take photos or use a camera to record any portion of a NRC meeting should contact the Office of Public Affairs beforehand.

ERCOT announced a yellow alert at 3:15 today when they smashed through the state electric use record by over 2,000 MW.  With only 1800 MW of reserve available around 4:30, we are periously close to triggering rolling blackouts. 

With no end in sight for this excessive heat wave, it is imperative that Texans severely curtail their electric use.

The leading cause of weather related deaths in the U.S. is due to heat, yet during one of worst heat waves in state history, Texas is holding onto millions of dollars intended to help hundreds of thousands of elderly and low-income residents pay their electric bills.

The Dallas Morning News reported that the state has collected $130 million this fiscal year to help financially strapped Texas residents pay for the cost of electricity used for cooling, but has spent only $28 million so far, half as much as it did to help the poor and elderly get through the summer a decade ago.

The reason: State lawmakers have diverted the money to deal with the budget shortfall. Saturday was the 29th consecutive day that it reached at least 100 degrees in the Dallas-Fort Worth area and Austin had seen 46 days of triple digit days so far this summer. The much hoped for relief that tropical storm Don was predicted to bring to parts of South and Central Texas fizzled as the storm came ashore and the National Weather Service forecast called for the oppressive heat to continue this week as the ridge of high pressure settles once more over the Lone Star state.

Texas leaders have said that until the economy recovers and lawmakers overhaul the state tax code, they have no choice but to use the dedicated-fee money elsewhere.  Chief Senate budget writer Steve Ogden, R-Bryan, said the only alternative to providing all the funds to help elderly and low-income citizens pay their electricity bills in this record breaking heat, would have been to cut more out of education, public safety and other key programs.

The money for the energy bill assistance is paid by fees collected from more than 6 million households and businesses. It is attached to utility bills and for the average residential ratepayer, it is about $1 a month.

Gov. Rick Perry proposed ending the assessment four years ago because the money was being diverted, but it was left in and is once again being diverted.

With the backing of major carmakers, President Obama announced a plan to increase the fleet average fuel economy of new cars and trucks to 54.5 miles per gallon by 2025, nearly double the current levels.

The new standards are the result of a compromise with the industry after the White House initially proposed raising the Corporate Average Fuel Economy, or CAFE, standard to 62 mpg.

The compromise was a bit of a surprise and looked unlikely even a few days ago,and key parties didn’t sign off on the final language until nearly midnight Thursday.

Seems like everyone is jumping onto the “Fracking” bandwagon. 

In an earlier blog we talked about the US Department of Energy’s entrance into the “Fracking” fray with Secretary Steven Chu appointing an Energy Advisory Board subcommittee on natural gas, led by former CIA director John Deutch, who plan to have recommendations on the table in the next few weeks.

The U.S. Environmental Protection Agency (EPA) is the other federal agency looking at the environmental impact of drilling for huge volumes of shale gas, but EPA doesn’t plan to release its initial findings until 2012 at the earliest. Nevertheless, this week they unveiled proposals to regulate air pollution from oil and gas operations, taking aim for the first time at the fast-growing practice of hydraulic fracturing.

Environmental activists say the regulations would mark the first significant steps taken by the EPA since 1985 to control harmful emissions released during production and transport of oil and gas, and the Texas Oil and Gas Association is already characterizing the proposed rules as an “overreach.”

The EPA’s suggested regulations fit into four categories, including new emissions standards for (1) volatile organic compounds (VOCs), (2) sulfur dioxide, (3) air toxics during oil and gas production, and (4) air toxics for natural gas transmission and storage.

The EPA expects the following emissions reductions would result if the new standards were fully implemented:

  • VOCs: 540,000 tons, or industry-wide reduction of 25 percent
  • Methane: 3.4 million tons, which is equal to 65 million tons of carbon dioxide equivalent, or a reduction of about 26 percent
  • Air Toxics: 38,000 tons, a reduction of nearly 30 percent.

Now Texas Railroad Commissioner David Porter has put together the Eagle Ford Task Force, whose top concerns include:

  • Protecting water resources while tapping into millions of gallons to help shake oil and gas out of tight shale formations
  • Waging good community relations via public education of how the oil and gas industry will operate in the area
  • Listening and working with concerns of locals citizens concerning noise levels and wear and tear on county roads and state highways
  • Developing a well-trained, technical workforce to fill thousands of entry-level jobs with starting pay of $60,000
  • Exercising stewardship over the area’s natural resources while balancing environmental concerns with cost-effective regulatory practices

Individuals named to the task force include:

  • Stephen Ingram, Halliburton Technology Manager
  • Brian Frederick, southern unit vice president of for the east division, Houston, of DCP Midstream, a gatherer and processor of natural gas
  • Trey Scott, founder of Trinity Minerals Management of San Antonio
  • Leodoro Martinez, executive director of the Middle Rio Grande Development Council, Cotulla.
  • Webb County Commissioner Jaime Canales, Precinct 4, Laredo.
  • Teresa Carrillo, Lone Star Chapter of the Sierra Club executive member and Eagle Ford landowner.
  • James E. Craddock, senior vice president of drilling and production operations, Rosetta Resources, Houston.
  • Erasmo Yarrito, Texas Commission on Environmental Quality, Rio Grande Water Master, Harlingen.
  • Steve Ellis, senior division counsel, EOG Resources, Corpus Christi.
  • Dewitt County Judge Daryl Fowler, Cuero.
  • Anna Galo, vice president, ANB Cattle Company, Laredo.
  • Mike Mahoney, Evergreen Underground Water Conservation District, general manager, Pleasanton.
  • James Max Moudy, senior client service manager, MWH Global, Inc., Houston.
  • Mary Beth Simmons, senior staff reservoir engineer, Shell Exploration and Production Co., Houston.
  • Terry Retzloff, founder, TR Measurement Witnessing, Campbellton.
  • Greg Brazaitis, vice president government affairs, Energy Transfer, Houston.
  • Glynis Strause, dean of institutional advancement, Coast Bend College, Beeville.
  • Susan Spratlen, senior director of corporate communications and public affairs, Pioneer Natural Resources, Dallas.
  • Chris Winland, Good Company Associates; University of Texas at San Antonio, interim director, San Antonio Clean Energy Incubator, Austin/San Antonio.
  • Paul Woodard, president, J&M Premier Services, Palestine.

 It will be interesting to see what kind of a production this cast of thousands puts on.

Earlier this week, NPR reported on the anticipated arrival of nearly 1,000 tons of nuclear waste from Germany at Oak Ridge, TN. The Nuclear Regulatory Commission approved a plan in June for an American company to import and burn low-level nuclear waste from Germany.  The radioactive residue left over from the process will be sent back to Germany for disposal.  That’s a lot of travel for waste, and Germany isn’t the only country looking for means of disposing of its radioactive waste.

Located just outside Knoxville, Oak Ridge was created from scratch in 1942 to help build the atomic bomb and has become a world-renowned center for nuclear research. Operations there generate a great deal of radioactive waste and some of that waste ends up at EnergySolutions’ Bear Creek incinerator plant in Oak Ridge.

With the recent permitting of WCS in Texas, there are now four low-level waste facilities in the U.S, Barnwell in South Carolina, Richland in Washington, and Clive in Utah are the others. The Barnwell and the Clive locations are operated by EnergySolutions, the Richland location is operated by U.S. Ecology and the Texas site is operated by Waste Control Specialists.  WCS, Barnwell and Richland accept Classes A through C of low-level waste, whereas Clive only accepts Class A. The Department of Energy (DOE) also has dozens of LLW sites under management which includes the Bear Creek incinerator.

When you start to talking about managing the rest of the world’s waste, the German waste looks like the beginning of what could be a large flood of material from other countries.  And given the blank check the Texas legislature handed WCS this past legislative session, you can bet they will be back at the table trying to get a piece of that operation.  Let’s hope the Texas legislature stands firm in their resolve to not accept foreign radioactive waste, ‘cause there is a lot of it that could come our way.

US Department of Energy Secretary Steven Chu

US Department of Energy (DOE) Secretary Chu may play a role in sorting out the entangled mess of misinformation and spin about the environmental impacts of gas drilling.

U.S. gas producers are looking to ramp up industrialization in rural areas outside of some of the nation’s largest cities.  Secretary Chu has indicated that the White House has charged the DOE with helping to develop this industry, but in an environmentally responsible way, but no one knows what that looks like at this point.

The Obama administration enforcement of the Clean Air Act is pushing the oldest and dirtiest coal-fired power plants out of the nation’s electricity fleet. That means tapping and burning trillions of cubic feet of newly booked gas reserves is quickly becoming a de facto energy policy in the absence of federal policies designed to cut greenhouse gas emissions, and gas producers are hoping that gas will replace the coal burners.

Because of these “game changing” new gas discoveries near population centers in Pennsylvania, Texas and New York  have entered the public consciousness through environmental lenses, and the EPA coming under siege because of their new rulemaking on air quality, the DOE is looking to play a larger role.

U.S. energy debate around this industry is dominated by a fear that extracting this gas through “fracking” is too invasive and fouls air and water.

Impacted States and U.S. EPA have been searching for a balance that allows companies to expand their drilling operations, while government agencies craft policy that addresses public concern about contaminating water aquifers, toxic waste pits and air pollution.

The nation’s massive shale and tight gas reservoirs are spread across the Northeast; in the upper Midwest; under Texas, Louisiana, Oklahoma and Arkansas; and north into the Rocky Mountain region.

In May, Chu appointed an Energy Advisory Board subcommittee on natural gas, led by former CIA director John Deutch and which includes Daniel Yergin, chairman of IHS Cambridge Energy Research Associates, and Fred Krupp, president of the Environmental Defense Fund.

EPA is the other federal agency looking at the environmental impact of drilling for huge volumes of shale gas, but EPA doesn’t plan to release its initial findings until 2012 at the earliest. Chu’s panel plans to have recommendations on the table in the next few weeks.

Where DOE’s report will fit into the broader array of  investigations into the environmental pitfalls of the gas boom is hard to say.  Regardless, DOE’s authority is limited. Land and water management tied to gas production on private and state lands is left to state and local regulators.

A report by the Tennessee Valley Authority’s (TVA) Office of Inspector General found that the groundwater at some coal ash sites is contaminated with arsenic and other toxic pollutants and is a health hazard.

Levels at the Gallatin plant site in Sumner County and at the Cumberland site, 50 miles northwest of Nashville, are at health-hazard levels.  Beryllium, cadmium and nickel levels are above drinking water standards at Gallatin, as are arsenic, selenium and vanadium at Cumberland and arsenic was found above allowable levels repeatedly in groundwater at TVA’s’ Allen coal-fired plant in Memphis.

Coal ash, once considered harmless, has been shown to contain a variety of heavy metals in low concentrations that can leach into drinking water sources and pose “significant public health concerns,” an Environmental Protection Agency (EPA) report has said.

Currently, the EPA is evaluating rules for coal ash waste as a pollutant.  If the EPA regulates coal ash waste, it could have a much greater effect on many coal-fired plants in Texas coming into compliance than the new air quality rules will have.

The Terry-Greene Tar Sands Resolution Would Allow Hasty Decision to Be Made Regarding an Oil Pipeline Through Texas

 The Terry-Greene Tar Sands Resolution (H.R .1938), which is scheduled for a vote Tuesday, would expedite the approval for construction of the Keystone XL pipeline, requiring a decision by Nov. 1 of this year, causing important objections to the pipeline to be overlooked.

Public Citizen, ReEnergize Texas, and the Sustainable Energy and Economic Development (SEED) Coalition told Congressional members in a letter that the construction of this pipeline would increase gas prices and release pollutants into the air, with no benefit for Americans. and that they should vote against a bill that would reduce the review of a proposed oil pipeline running through the Ogallala Aquifer in Texas.

The proposed TransCanada Keystone XL pipeline would run from Canada through the Ogallala Aquifer in Texas to the Gulf of Mexico, where refineries would make oil available for export. The pipeline would transport the dirtiest oil in the world through America’s largest freshwater aquifer, risking a major oil spill and causing dangerous pollutants to be released into the air during the refining process, the groups said. This tar sands oil contains three to four times as much carbon, five times as much lead, six times as much nitrogen and 11 times as much sulfur as is found in conventional crude oil.

A spill from the proposed pipeline would be devastating because the Ogallala Aquifer supplies water to approximately a quarter of the country’s irrigated land. A recent study by University of Nebraska professor John S. Stansbury shows that TransCanada has vastly underestimated dangers posed by the pipeline. The study reveals that the Keystone XL pipeline could have up to 91 spills over 50 years, compared to TransCanada’s claims that there would be only 11.

In addition, the pipeline would drive up fuel costs in the United States. According to TransCanada’s own documents and oil industry economist Philip Verleger, the pipeline would bypass Midwestern refineries, which help keep fuel costs low for American farmers by boosting competition. TransCanada predicts this would drive up fuel costs in the U.S. by up to $4 billion annually, and Verleger anticipates gas prices rising 10 to 20 cents a gallon. So TransCanada’s proposed pipeline would require America to bear the burden of transport and raise gas prices only to send the profits to Canada and the oil to global markets.

“While this might appear to some to be an economic trade-off worth considering, a major issue is that the oil is being transported to the Gulf of Mexico to make it available for export. In other words, Texans would bear the burden of the pollution, but the oil would either supply our global competitors or be priced equivalent to the export market set primarily by the OPEC nations,” the letter said.

Click here to see the letter and click here to see the fact sheet.

According to the Austin Business Journal, Donna Nelson has been appointed by Gov. Rick Perry to be chairman of the Public Utility Commission of Texas.

Ms. Nelson will replace Barry Smitherman in that position.  Smitherman resigned earlier this month and Gov. Rick Perry quickly appointed him to the Texas Railroad Commission.

Nelson is a former special assistant and advisor on energy, telecommunications and cable budget and policy issues in the governor’s office, and has served on the PUC as a Commissioner since 2008.