Will Texas Subsidize Fossil Fuel Plants?
The Texas Senate passed Senate Bill 388 on March 19. The bill headed to the Texas House and was assigned to the State Affairs committee. This bill is part of a larger effort to support natural gas plants. It will subsidize fossil fuel energy by giving financial help to builders of new natural gas plants. If passed by the lower chamber, the bill will change how Texas power gets made and used.
Furthermore, it creates a trading program for “dispatchable generation credits.” As a result, every electric company that generates power in Texas would have to either own natural gas capacity or buy credits from others.
A New Push to Subsidize Fossil Fuel Energy
Lawmakers say the bill should help make the grid more reliable. But this plan comes with big risks and may not work fast enough. The goal is to build enough new gas plants by 2026. But realistically, that timeframe is not possible. There is already a long wait to get the parts needed to build these plants. Plus, rising electricity demand from large data centers is making things worse.
Some have concerns that the bill limits other types of clean energy. Some lawmakers want to block new solar and wind projects. But experts warn this will cost Texans more in the long run.
What It Means for Texas
Texas-based Aurora Energy Research studied what could happen if Texas stops building renewables. They found that cutting clean energy will raise wholesale electricity prices by 14% over the next 10 years. Consequently, that could mean higher power bills for homes and businesses. Also, it could make it harder to meet the state’s fast-growing energy needs.
Even though Senate Bill 338 will subsidize fossil fuel plants, it may not solve all of Texas’ energy problems. We still need wind and solar power. And these sources are clean, cheap, and quick to build.
Bottom Line
Texas is trying to boost natural gas power with new rules and money. Senate Bill 338 would subsidize fossil fuel use while slowing down clean energy growth. But experts say both are essential to keep the lights on and prices down in Texas.
As this bill moves to the Texas House, Texans should keep watch. Our state’s energy future — and what we all pay for it — may depend on what happens next.
Likewise, you should also keep your home’s energy prices in check this summer. Shop for the best rates at http://www.texaselectricityratings.com/electric-rates to give yourself the lowest bill possible.