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To be clear - the generators didn't winterize, they "passed" the new ERCOT winterization rules. Texas Monthly briefly addresses this, but the new rules are mos

To be clear - the generators didn't winterize, they "passed" the new ERCOT winterization rules. Texas Monthly briefly addresses this, but the new rules are mostly a checklist of readiness actions designed to ensure that generators can perform in what they consider a 'normal' winter. Phase 1 at least includes such amazing winterization requirements as, "Attest that you repaired everything that broke last February" and "Inspect your insulation". There are more useful requirements like adding temperature monitoring, wind breaks around components, etc, but there is literally no enforcement mechanism yet so it's all basically on the honor-system for now.

vorpalhex 5y ago
Are ERCOT inspections and $100,000 daily fines not an enforcement mechanism? Yes, the fix for cold temperatures are insulation requirements and wind breaks, etc. Not exactly exciting stuff but still correct.
- wyldfire 5y ago
  IIRC the article said that producers could exempt themselves by attesting that they weren't prepared to stay operational and paying a $150 filing fee.
- epistasis 5y ago
  A $100,000 daily fine is a pittance compared to the $9000/MWh prices of electricity during the grid failures. Even a small generator could have been making millions during that time. Perhaps a tiny stick is more motivation than a much larger carrot for operators that were so unsophisticated as to miss that initial carrot, however.
- mikeyouse 5y ago
  The inspections are only occurring at facilities that voluntarily declared themselves as critical infrastructure... {https://www.texastribune.org/2021/09/28/texas-power-grid-loophole/ https://www.texastribune.org/2021/09/28/texas-power-grid-loo...} If you notice the ERCOT press release, "321/324 facilities" passed inspection. Last February over 1,000 generating units failed, and over 600 of these were gas generators. So 320ish generators passed inspection -- it's unclear how many of those were in the 600 that failed last year or how many total there are in the state (e.g. the 320 that passed could have already been winterized?). And the daily fines are for "repeat offenders" who don't "remedy within a reasonable period of time" deficiencies that are reported to the commission. It's basically toothless because "reasonable" isn't defined anywhere and it's all at the discretion of the PUC. Obviously things will be directionally better now, and likely even more so in the future, I just wouldn't want to be in Texas during a cold streak in the next couple years.
  - vorpalhex 5y ago
    Those 324 represent 88% of capacity. Any fine system has time limits and reasonableness clauses. I will continue living in Texas, and continue not being very concerned during the winter other than our lack of salt trucks.
- kgwxd 5y ago
  The fines will just be passed off to the customers.
bryananderson 5y ago
A friend of mine is an engineering manager overseeing winterization of gas generators for a utility company in a southern state. His utility hired a company from Texas to do the winterization. My friend commented to his counterpart at the winterization company that they must be getting a ton of business close to home after what happened last year. His counterpart said nope—the Texas utility companies are very much treating it as a one-off event, and the winterization company is not seeing an increase in business there.

vorpalhex 5y ago

Are ERCOT inspections and $100,000 daily fines not an enforcement mechanism? Yes, the fix for cold temperatures are insulation requirements and wind breaks, etc. Not exactly exciting stuff but still correct.

wyldfire 5y ago
IIRC the article said that producers could exempt themselves by attesting that they weren't prepared to stay operational and paying a $150 filing fee.
epistasis 5y ago
A $100,000 daily fine is a pittance compared to the $9000/MWh prices of electricity during the grid failures. Even a small generator could have been making millions during that time. Perhaps a tiny stick is more motivation than a much larger carrot for operators that were so unsophisticated as to miss that initial carrot, however.
mikeyouse 5y ago
The inspections are only occurring at facilities that voluntarily declared themselves as critical infrastructure... {https://www.texastribune.org/2021/09/28/texas-power-grid-loophole/ https://www.texastribune.org/2021/09/28/texas-power-grid-loo...} If you notice the ERCOT press release, "321/324 facilities" passed inspection. Last February over 1,000 generating units failed, and over 600 of these were gas generators. So 320ish generators passed inspection -- it's unclear how many of those were in the 600 that failed last year or how many total there are in the state (e.g. the 320 that passed could have already been winterized?). And the daily fines are for "repeat offenders" who don't "remedy within a reasonable period of time" deficiencies that are reported to the commission. It's basically toothless because "reasonable" isn't defined anywhere and it's all at the discretion of the PUC. Obviously things will be directionally better now, and likely even more so in the future, I just wouldn't want to be in Texas during a cold streak in the next couple years.
- vorpalhex 5y ago
  Those 324 represent 88% of capacity. Any fine system has time limits and reasonableness clauses. I will continue living in Texas, and continue not being very concerned during the winter other than our lack of salt trucks.
kgwxd 5y ago
The fines will just be passed off to the customers.

bryananderson 5y ago

A friend of mine is an engineering manager overseeing winterization of gas generators for a utility company in a southern state. His utility hired a company from Texas to do the winterization. My friend commented to his counterpart at the winterization company that they must be getting a ton of business close to home after what happened last year. His counterpart said nope—the Texas utility companies are very much treating it as a one-off event, and the winterization company is not seeing an increase in business there.