How to think about your energy plan following Winter Storm Uri

The Texas power grid experienced unprecedented hardship in February with a storm of historic magnitude that brought cold not seen for three decades. Such events, rightfully, led planners and state officials to examine rules and regulations and consider changes to improve the overall resilience of the electric grid.

As a business operating within ERCOT, you are probably wondering what kind of changes might be considered. The Texas Legislature has already held a series of extensive hearings to review the causes of the disruption. The legislature is also likely to establish additional requirements for the energy sector on topics including weatherization, public communications during energy emergencies, and consumer protection. NRG stands ready to help by offering our expertise. To that end, we have submitted recommendations to Texas lawmakers that we welcome you to read. 

NRG is also taking immediate actions to assist Texans affected by the storm. We have pledged an initial $11 million in relief to our communities, customers, and employees. And as your energy partner, we are here to help you position your facility for whatever is happening with the weather or the energy market. 

In addition, as always, we are available to help our customers navigate the ERCOT power market. ERCOT is a highly competitive market for energy where the supply of electricity is provided at market rates by independent power producers. However, the Texas market is not “deregulated” as it is sometimes described. On the contrary, a safety net exists for situations where a customer’s retail electric provider fails on its obligations and goes out of business. This safety net — called a provider of last resort — is sourced from established retail electric providers, including NRG, that either voluntarily or by government requirement offer to serve customers who have lost their electricity provider through no fault of their own. We provide more details in this NRG Insight article.

It’s important to start by understanding where you stand on the price stability/risk scale so that you are on the right supply plan. By design, the Texas electricity market features high prices when supply is scarce — as a way to signal to customers on market-based products that they should reduce or stop using electricity. But market pricing is not appropriate for most customers. For example, we do not offer any products to residential customers that are directly tied to the real-time wholesale market prices of ERCOT. And our business customers can choose from several fixed-price products in our offerings. Please note: If you were exposed to the high market prices during the storm and need payment assistance, we will work with you.

You can help manage your energy costs further by undertaking energy efficiency measures and participating in load management, demand response, and other programs that employ energy flexibility. By doing so you can help not only your own position but that of the general public. The less energy we all use during periods of high demand, the better for everyone. 

And last, we encourage you to evaluate your need for backup generation. Can your operation withstand a disruption for multiple hours, or in worst-case scenarios, days? If not, we can help you think about which solutions might make sense for your business.

Winter Storm Uri underscored the importance of taking charge of your energy future. With an expert partner, you can do this now, without waiting for state policy changes. We are here to help.