Austin News

A Texas energy analyst said elected officials and those in charge of public policy need to accept their responsibility for the power problems that struck Austin and the rest of Texas last month.

Some high-ranking officials have seen their careers derailed by the powerful storm and public outrage over the mess.

Two top Texas power system officials were forced from office recently as Public Utilities Commission of Texas Chairman DeAnn T. Walker and Bill Magness, president and CEO of the Electric Reliability Council of Texas, were forced out in the wake of blackouts, systemic failures and spiraling energy costs caused by Winter Storm Uri, which froze Texas with extreme cold, high winds and heavy snow from Feb. 13-19.

Energy Alliance Policy Director Bill Peacock | linkedin.com/in/bill-peacock-1a12526

Bill Peacock, policy director of The Energy Alliance, said Walker and Magness can’t be blamed for all the problems, and their departures won’t solve them, either.

“DeAnn Walker's resignation will not fix what is wrong with the Texas electric grid. While the PUC is complicit in the blackouts, the real fault lies elsewhere,” Peacock said. “For years, the Texas Legislature, governor, lieutenant governor and speaker of the House have promoted or allowed regulatory overreach and engaged in corporate cronyism to undermine the most competitive electricity market in the world. Until the Legislature acts to end these activities – and particularly to end renewable energy subsidies, the grid will still be at risk.”

ERCOT operates the electric grid and manages the deregulated market for 75% of Texas. It was formed in 1970 and given more power in the last decade.

“I don’t know what happened behind the scenes at ERCOT during the storm,” Peacock said. “But I do know that Texas policymakers bear much more responsibility for the blackouts than Bill Magness or any other grid manager at ERCOT.”

At its peak, more than 4 million homes lost power as temperatures dropped to record lows. At least 47 people died, and many suffered from the extreme conditions.

To add further insult, the price of power skyrocketed, leaving some Texans facing bills in the thousands of dollars for energy they used during the crisis. That might continue for some time.

“For Texans, the situation could go from bad to worse,” Marcie Zlotnik, former chairman of Houston-based StarTex Power, an electricity retailer, told Texas Monthly. “I’m concerned about increasing power prices, job losses across the industry, and the long-term implications for the market and consumers, who have already suffered through a horrendous ordeal.”

Walker and Magness had been lighting rods in a storm of fury over the power outages caused by the historic storm. On March 1, Lt. Gov. Dan Patrick called on both to resign, and Walker, a former aide to Gov. Greg Abbott, did so that day.

Arthur D’Andrea, a PUC commissioner named to the post in 2017, was put in charge of the agency on Wednesday. He will receive the same $201,000 salary as Walker, and D’Andrea began his first meeting in charge by praising her performance. Walker was named to lead the PUC in 2017.

“Before I get started, I want to take a minute to acknowledge DeAnn Walker’s dedicated and tireless service to this agency,” D’Andrea said. “She was the hardest-working, the most detail-oriented person I’ve ever met and I’m really going to miss having her around.”

Magness was fired during an emergency board meeting on Wednesday. He was terminated “without cause,” ERCOT said.

Magness had been with ERCOT for more than a decade, moving from general counsel to president and CEO in 2016. He announced Thursday he will not accept an $800,000 severance package from ERCOT.

Last month's power disaster exposed to the nation Texas’ unique power grid. It is almost entirely separate from the two primary grids — one that services the eastern side of the country, the other the western half — as Texas wants to avoid federal regulation.

Walker spoke on the Texas power grid during a Jan. 15 panel discussion moderated by Mike Nasi, a partner with Austin's Jackson Walker LLP law firm, who practices environmental and energy law. State Sen. Kelly Hancock, a Republican from North Richland Hills representing the 9th District, and Phil Wilson, general manager of the Lower Colorado River Authority, also spoke at the event sponsored by the Texas Public Policy Foundation.

During the discussion, Walker said ERCOT provides transparency to customers through prices. She said she was in regular contact with ERCOT officials and thought highly of its work.

“I think they do a great job,” Walker said.

After Uri rampaged through Texas, she had changed her tune.

Nasi declined to comment on Walker and Magness stepping down from their posts, saying he was involved in the matter but might be willing to discuss it at a later date.