The Freestone Energy Center is partly owned by Rayburn Country Electric Cooperative.
New hookups are not denied by electric utilities. Data miners are not welcome.
In Texas, even without data miners, power demand is growing quickly and requires a lot of electricity. California, Florida, Georgia, Illinois, and even bordering states of Oklahoma and Louisiana are some of the places new residents are moving to.
They all have one thing in common, and that's the need for an electricity supply.
Low taxes, a barrel of incentives and the expectation that the state will be business friendly are some of the reasons why high-tech firms are moving to Texas.
From a launch facility in Brownsville to a huge car plant in Austin, Musk's businesses are spread across Texas. The Boring Company has a presence as well.
The high tech companies need a lot of electricity for their operations. Texas is home to the virtual world's roots.
The data miners are there as well. They are mobile, seek cheap electricity in large quantities, and create headaches for the utilities that serve those areas. When there is surplus power, utilities like data miners but worry about the cost of new infrastructure to serve them and whether they will last in their chosen locations.
David Naylor is the CEO of Rayburn Country Electric Cooperative, Inc. Four distribution co-ops make up Rayburn's membership.
Rayburn isn't in a supply crunch, but there is a constant need to build out the infrastructure. There is a new transmission.
In fast-growing areas north and east of Dallas, it provides power to four distribution co-ops. Demands on Rayburn and its members will grow as the city grows. Two data miners are looking at Rayburn's low rates and semirural area.
There is a new transmission for Rayburn and it is a problem. They don't want to useEminent domain and try to negotiate with the people who own the land.
He said that supply chain issues are not going to get much worse at the moment.
The utility is lucky because of the shape of Rayburn's load. It's best to fit the pattern of solar generation. The peak of Rayburn is compatible with the solar generation pattern but only at the end of the peak.
Solar is ideal for new generation because of the utility's load to date. It hasn't renewed power purchase agreements for wind. 25 percent of the Freestone Energy Center is owned by Rayburn and 75 percent is owned by Calpine.
The Covid-19 was locked down. The load went from a peak just after dawn, when everyone gets up and turns on their electric appliances, to a peak in the evening. The shape was more similar to the weekends with the lock down.
The storm that hit Texas in February of 2021 is still remembered. After electricity prices increased during the crisis, Rayburn paid its outstanding invoices and settled with the ERCOT.
It spread the cost recovery to consumers by issuing bonds. The Texas Legislature created a new option called Securitizatio n.
We are a favorite at ERCOT. The bond rating is back up to investment grade but not as high as before.
The debate around ERCOT waspoliticized at a time when it is being reinvented. Some Texas companies have made political contributions that are too large for his members. It's harder to get a hearing when you don't have the money to do it.
In studying Rayburn, the wordyeoman is what comes to my mind. According to the Britannica Dictionary, Yeoman is very good, hard, and valuable work that someone does to support a cause.
It applies to the panoply of small utilities, most of them among the 900 rural electric co-ops that combine to play an essential role in the matrix of electric utilities.
All utilities will be tested this summer. The Federal Energy Regulatory Commission and the North American Electric Reliability Corporation have warned that there will be shortages in the West and the Midwest this summer due to the severe weather and reduced hydro production.
I was told that Rayburn has assured supplies for its members but that he can't speak for ERCOT.
He is an electrical engineer. He didn't want to follow in his father's footsteps. After graduating from the University of Oklahoma with a degree in electrical engineering, I used to drive with my father. He said that they were laughing about depreciation. The apple was close to the tree.
I asked the man what he looks for in a new employee. He said that the ability to think was the most important thing. We can't afford to hire people who are not perfect. I would make my people compete against the best.
All Rights Reserved © 2024
