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DALLAS — There is a growing risk that the solar power and utility-scale batteries the Texas power grid relied on last summer may be inadequate to meet an expected surge in electricity demand in coming years. Additionally, extreme cold poses different challenges for solar and battery output to overcome than extreme heat, according to a new study published by the Federal Reserve Bank of Dallas.

As the Electric Reliability Council of Texas (ERCOT) forecasts accelerated load growth due to anticipated data center construction and electrification trends, the current generation mix and market design should garner increased scrutiny, wrote the study’s author Garrett Golding, assistant vice president for energy programs at the Dallas Fed.

“Rising solar and battery output in ERCOT clearly enabled a summer of triple-digit heat without the close calls of previous summers and with lower prices to boot,” Golding wrote. “However, the ground is beginning to shift as load is poised for a long climb higher and expected generation installation gets pushed to its limits.”

Other key points in the post include:

Between 11a.m. and 2 p.m. in summer 2024, solar output averaged nearly 17,000 megawatts (MW) compared with 12,000 MW during those hours in 2023. Between 6 p.m. and 9 p.m., discharge from battery facilities averaged 714 MW in 2024 after averaging 238 MW for those hours in 2023.

On Aug. 20, when a new load record was set, battery discharge also set a record of 3,927 MW at 7:35 p.m. that evening. ERCOT avoided sending a conservation appeal on that day. Solar and battery output have continued to grow since then.

972 MW of new thermal power plant capacity is expected to enter service within the ERCOT area by summer 2026 versus an additional 22,991 MW of new solar generation.

Peak load can occur early in the morning before the sun rises on cold winter days (when solar can’t contribute any output). Peak load can last for a longer period, too, straining the typical one- to two-hour discharge capacity of the current battery storage fleet within the ERCOT service area.

Market signals are required for development of adequate generating capacity to meet the highest load scenario, even if that scenario is just for one hour over the course of an entire year—or longer, Golding wrote.

“ERCOT’s energy-only market design and new incentive structures such as the Texas Energy Fund do not appear adequate for the magnitude and speed of load growth ERCOT forecasts,” Golding wrote.

TEXAS – The Houston Chronicle reports that Texas lawmakers will return to Austin this week with a budget surplus of nearly $24 billion, buoyed by growing tax revenue and a stalled school funding increase, Texas Comptroller Glenn Hegar said Monday. “Texas is in good financial shape,” Hegar said when he announced the 2026-2027 biennium revenue estimate on Monday. Lawmakers will have $194.6 billion in funds available for general-purpose spending this session, a roughly 1% decrease from the money available during the 2024-2025 biennium. Last session, lawmakers convened with a “once-in-a-lifetime” cash surplus, much of which they spent on property tax relief for homeowners. Now, Hegar said, the Texas economy “will continue to normalize after the profound disruptions of the pandemic, dramatic recovery when COVID restrictions were lifted, and high inflation that accompany a booming economic growth.”

Hegar attributed much of the state’s surplus to “prudent decisions by the Legislature last session to do one time expenses, not spend all the dollars, to be cautious,” he said. Some of the state’s nearly $24 billion cash surplus comes from $4.5 billion that was set aside last session for school funding and a school voucher program but never enacted. Gov. Greg Abbott has said creating a voucher program is his top legislative priority, and he has refused to take up increased public school funding until it passes. In 2023, state lawmakers allocated $18 billion to property tax relief, and they are likely to consider passing further tax breaks onto homeowners this session. Lawmakers have also signaled they will tackle the skyrocketing cost of home insurance, which is now among the most expensive in the country. Hegar noted that insurance tax collections, which make up a small share of the state’s revenue, skyrocketed in the past two years, jumping by nearly 16% in 2022 and more than 30% in 2023, compared to roughly 5% growth in prior years.

DALLAS (AP) – Southwest Airlines is hitting the pause button on some of its hirings, internships and employee events this year as the company looks to lower costs.

“We are limiting discretionary costs, including holding on the Southwest Rallies for this year, as we focus on reducing costs,” the company said in a prepared statement on Tuesday. “We’re also pausing on most summer internship positions (honoring offers already made) and pausing all noncontract internal and external hiring.”

Southwest said that it will continue to evaluate its hiring needs on an ongoing basis to determine when it makes the most sense to restart hiring.

Back in September Southwest announced that it would revamp its board and that its chairman would retire in 2025, in a partial concession to hedge fund Elliott Investment Management, which has been pushing for changes at the airline.

Elliott, the fund led by billionaire investor Paul Singer, has built a minority stake in Southwest and advocated for changes it says will improve the company’s financial performance and stock price.

The two sides reached a settlement in October. At the time, Southwest said that Chairman Gary Kelly and six board members would depart on Nov. 1 and be replaced by five Elliott-backed candidates and a former Chevron executive.

Southwest was a profit machine for its first 50 years — it never suffered a full-year loss until the pandemic crushed air travel in 2020. Since then, the company has been more profitable than American Airlines but far less so than Delta Air Lines and United Airlines.

Southwest was a scrappy upstart for much of its history. It operated out of less-crowded secondary airports where it could turn around arriving planes and take off quickly with a new set of passengers. It appealed to budget-conscious travelers by offering low fares and no fees for changing a reservation or checking up to two bags.

But Southwest now flies to many of the same big airports as its rivals. With the rise of “ultra-low-cost carriers,” it often gets undercut on price.

As part of its efforts to turnaround the business, Southwest has announced plans to increase revenue by converting nearly one-third of its seats to premium ones with extra legroom. It will also begin assigning seats — ending the longtime practice of letting passengers pick their own seats after boarding the plane. And it is pursuing partnerships with international airlines, starting with Icelandair, to offer destinations beyond North America and Central America.

In November the Dallas-based airline offered buyouts and extended leaves of absence to airport workers to avoid what it called “overstaffing in certain locations,” which it blamed on a shortage of new planes from Boeing.

Shares of Southwest rose slightly in morning trading.

Gov. Greg Abbott threatened Texas A&M University President Mark Welsh III’s job over claims the university broke the state’s ban on diversity, equity and inclusion programs.

The threat came after conservative activist Christopher Rufo shared a university email inviting some staffers and PhD students to attend a conference that limited participation to people who are Black, Hispanic or Native American.

On Monday, someone asked Abbott and Attorney General Ken Paxton on social media whether they were going to tolerate the behavior.

“Hell, no,” Abbott replied hours later on X, formerly known as Twitter. “It’s against Texas law and violates the U.S. Constitution. It will be fixed immediately or the president will soon be gone.”

The A&M email said the university’s general counsel had confirmed that the conference complied with the state’s DEI ban.

Senate Bill 17, which took effect last year, prohibits public universities not only from having DEI offices, but from compelling any person to provide a DEI statement or undergo DEI training and giving preferential treatment on the basis of race, sex, color, ethnicity or national origin.

On Tuesday, Welsh released a statement that the university “will continue to honor both the letter and intent of the law.”

“Texas A&M does not support any organization, conference, process or activity that excludes people based on race, creed, gender, age or any other discriminating factor,” the statement said. “The intent of SB-17 is very clear in that regard.”

This story was originally published by The Texas Tribune. You can read the original article by clicking here.