Texas grid boss call EPA rules ‘handcuffs’

AUSTIN – The San Antonio Express-News reports the state grid operator says that increasingly strict pollution controls are operational “handcuffs” putting the stability of the Texas grid at risk. Federal emissions standards also are sending CPS Energy outside Bexar County to find a home for its next gas-powered plants because of concerns the rules could hinder their operation in the city-owned utility’s home county. “It’s going to constrain the potential out there to meet this demand we’re talking about,” grid boss Pablo Vegas said during a panel discussion last week in San Antonio, referring to the state’s increasing need for electricity supply. “We can’t just solve this problem by lodging two hands behind our backs.”

It wasn’t the first time the head of the Electric Reliability Council of Texas has taken shots at regulations coming from the Environmental Protection Agency limiting emissions that can be harmful to human health and cause climate change. But this time he did it while seated alongside CPS President and CEO Rudy Garza, whose utility has made it a priority to reach net neutral carbon emissions by 2050. By the end of this decade, it plans to cut back harmful emissions by 41% from where they stood in 2016. Despite CPS’ stance on pollution, Garza told the crowd gathered Thursday for a panel discussion on energy that planning new generation capacity the state needs to maintain reliability around regulations is an increasing challenge. Those challenges are top of mind as San Antonio stares down the possibility of having its status with the EPA of ozone pollution upped to “serious” if emissions don’t drop by Sept. 24. The change could affect how often CPS is allowed to run its natural gas-powered plants as federal regulations are likely to put in stricter emission controls. That’s why Garza says CPS is looking outside Bexar County to build up to 444 megawatts of new natural gas generation.