AUSTIN, Texas - Texas recently was ranked last in a national survey of electrical-system reliability, which might not surprise anyone who experienced last summer's rolling blackouts.

State regulators are responding to the problem with a plan that kicks in today. They have raised the cap on wholesale prices in most of the state by 50 percent, hoping the move will ensure that energy companies have enough cash on hand to build new power plants.

Consumer advocates fear that homeowners and small businesses will bear the brunt of the increase. Tim Morstad, associate state director of AARP Texas, explains.

"The real frustrating thing here is that state regulators are saying we need to do this because power suppliers need to build more power plants, but there's no guarantee that these power suppliers are actually going to build those power plants at the higher prices."

Today's increase could simply lead to bigger profits for energy suppliers, Morstad says, adding that it might be just the beginning of higher electric bills for Texans. The Public Utility Commission has signaled that it's considering raising the cap again by as much as 100 percent, perhaps later this year.

Morstad considers any rate hike to be a safety issue for AARP's elderly members on fixed incomes. Every year, vulnerable Texans who can't afford air conditioning die from heat-related causes. While he agrees the state's grid probably is insufficient for a growing population, he thinks today's increase is premature.

"There are other things to explore - like, how can we reduce the amount of electricity that we're using, and maybe make it unnecessary to build new power plants. We want all of the different options to be explored."

Consumers won't automatically face higher fixed rates after today, according to industry representatives. More likely, Texans will see temporary increases during peak usage times.

Critics warn that raising the wholesale cap could jeopardize some of the state's smaller providers who have previously offered customers locked-in rates.

See state reliability rankings online at nerc.com.



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North Carolina's largest utility company said rising fuel costs are making it more expensive to bring power to consumers and is proposing a rate hike to offset the cost next year and recoup losses.

Critics argued Duke Energy should be pursuing more renewable energy sources, not hiking monthly power bills.

Shelby Green, research fellow at the Energy and Policy Institute, said she hopes state regulators consider what actions the company has taken to increase its renewable portfolio and reduce its dependence on fossil fuels.

"They're not combating the increase in fuel costs by having more attractive or convenient energy efficiency programs," Green outlined. "They're not exploring how they can help their bigger, more industrial or commercial customers generate their own renewable energy."

The company maintained with gas prices more than doubling this year, it has become more expensive to ensure customers have reliable power. If approved, the new rates would go into effect in January, and result in about a 6% increase for residential customers and 9% for commercial customers.

Green noted the North Carolina Utilities Commission will decide whether Duke Energy will be able to raise rates and pass operating costs onto customers.

"So, if you're a customer, and you don't want to see your bill increase, comment," Green urged. "Submit a complaint or a grievance, and try to be engaged in the process."

Green pointed to the war in Ukraine, inflation and other factors indicating fuel costs are not expected to drop any time soon.

"With a post-COVID-19 change in energy consumption as it relates to behavior, more people are working at home," Green observed. "More people are spending more time inside of their house."

Climate change is also shifting energy demand. In predictions by the U.S. Energy Information Administration, warmer global temperatures are expected to increase residential electricity consumption by 5% by 2050.

Renewable energy has the possibility to boost the economy and benefit workers and the environment in the Keystone State. That was the message at the Global Clean Energy Action Forum that just wrapped up in Pittsburgh.

Clean energy will be essential to improving air quality and health, reducing the state's carbon footprint and fighting climate change, according to the Pennsylvania Department of Environmental Protection.

Pittsburgh City Council member Erika Strassburger said the transition to cleaner energy sources also means more energy workforce opportunities.

"We know that there are already jobs to be had, and jobs that have been created in truly clean energy production," said Strassburger, "whether it's wind power, solar power, geothermal, hydroelectric - and even increasing the energy efficiency of vehicles and of buildings, and retrofitting homes and buildings."

Meanwhile, House Bill 1161 made it through the Pennsylvania House in June and was just heard last week by a Senate Committee.

If it passes, the 'PA Local Solar' program would give electric customers the chance to get their power from solar sources instead of a mix of energy types.

More than half of Pennsylvania households are heated with gas, and the state is the third-largest coal producer in the nation.

The Inflation Reduction Act includes a historic investment of $370 billion to fight climate change over the next decade. Strassburger said that can't help but change the economic landscape for Pennsylvania, to implement renewable energy and improve energy efficiency.

"I am incredibly enthusiastic about the passage of the Inflation Reduction Act," said Strassburger, "the funds that are attached to that, and some of the mandates that are attached to that as well, and the commitments. It's really going to, I think, make a difference at the state and where I serve, at the local level."

She added that there's a lot of discussion about hydrogen production, and in particular, blue hydrogen, which requires carbon capture and storage to be viable and climate neutral.

The 2021 infrastructure bill also includes $8 billion to create Regional Clean Hydrogen Hubs around the country. Some business groups are hoping to win a bid to build one of those hubs in Pennsylvania.

Local officials concerned about climate change are urging Democrats to scuttle a deal reached with Sen. Joe Manchin, D-W.Va., to pass a bill to fast-track permitting for energy projects.

Some 445 officials from across the country are asking the Democratic National Committee to support a resolution condemning the proposed bill before the committee's summer meeting ends tomorrow.

Devin Murphy, mayor pro-tem of the City of Pinole, north of San Francisco, said Democratic leaders promised to support the proposal in exchange for Manchin's vote on the Inflation Reduction Act.

Murphy thinks the plan runs counter to what is happening in the Golden State.

"The deal that Sen. Manchin made would undo many of the new gains that this legislature just enacted," Murphy asserted. "It really turns back the clock, and we can't afford that here in California."

The Inflation Reduction Act makes a historic investment of $370 billion to fight climate change over the next decade. The oil and gas industry has long argued the permitting process and environmental reviews for new energy development on public lands are overly complex and time-consuming.

But Murphy pointed out by rushing the process, it gives the public less time to weigh in.

"It also undermines democratic norms," Murphy contended. "The permitting reform bill also will prevent meaningful public input from those communities in the crosshairs of harmful fossil fuel projects."

The letter to the committee also raised issues of environmental justice. It argued the permitting bill would likely lead to more drilling sites and refineries polluting the air, often located in lower-income communities of color.