Is Texas Souring On Wind Power?

Texas has more wind power generation than any other state, so it’s only fitting that Texas regulators are starting to ask some tough questions about wind power subsidies. The head of the state’s Public Utility Commission, Donna Nelson, is calling for a study to consider whether wind generators should start paying their share of transmission costs.

Texas already invested $7 billion in high-capacity power lines that the state built to connect West Texas wind farms with the more populous cities in the east — such as Dallas and Houston. But wind power, as an intermittent resource, can create additional transmission costs, and those costs are borne by all the electricity customers in the deregulated market, which is about 85 percent of the state. Part of the study will determine the amount of the extra transmission costs and what, if any, remedy is needed, a PUC spokesman said.

Wind power developers warn that making wind companies pay the same transmission rates as other generators will destroy Texas’ lead in wind power and undermine the economics of wind generation. Nelson, however, claims that giving wind companies a pass is no longer necessary because the industry has been around long enough to figure out its economics.

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