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Saturday, December 13, 2025 at 11:46 AM
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THE ECONOMIST: Turning on the Juice!

The 89th Session of the Texas Legislature adjourned on June 2 after 140 days. As with every biennium, there were both good and not-so-good elements of the outcome. Considerable progress was made in dealing with a number of challenges facing the state, including, among others, public school finance and teacher pay (though much remains to be done), water supplies, rural health care, wildfire preparation, and the current topic of electric power supplies and the stability of the grid. Amongst the usual sound and fury, there were clear steps in the right direction.

The Electric Reliability Council of Texas (ERCOT) is the grid operator charged with ensuring reliable electric service for 90% of the state and is overseen by the Public Utility Commission of Texas and the Texas Legislature. More than 27 million customers are served by ERCOT, with only a few geographic areas being excluded.

Ensuring the adequacy of the state’s grid and power supply is a major challenge. Texas has been growing rapidly, both in terms of population and the economy, and there is reason to believe that pattern will continue. We are also adding firms and facilities in a variety of power- intensive industries.

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