CPS Energy, a public utility provider of electric and natural gas services in San Antonio and portions of seven adjoining counties, has announced the closure of its V.H. Braunig electric generation facility. In a filing to the Electric Reliability Council of Texas (ERCOT), the company stated it will "indefinitely suspend operations" of three units of the facility totaling 859-megawatts as of March 31, 2025.
This announcement comes at a time when the Texas grid is grappling with reliability issues during periods of extreme temperatures and subsequent high demand. The Houston Daily reported an instance on September 6, 2023, when solar generation plummeted to just 11.6 percent of expected summer capacity from 86.9 percent a few hours earlier as the sun began to set. Wind generation did not increase to compensate for this shortfall despite falling electricity demand as temperatures cooled. Due to these deteriorating grid conditions, ERCOT declared an Energy Emergency Alert 2 for the first time since Winter Storm Uri.
According to an ERCOT report, one factor contributing to these reliability challenges is the rapid shift in energy sources that can be dispatched depending on weather conditions. Over a five-year period from 2018 to 2023, coal-fired plants' generation fell by 34%, nuclear generation decreased by 1%, and natural gas generation increased by only 17%. In contrast, wind power saw an increase of 55% while solar power skyrocketed by up to 900%.
In response to concerns about its decision's impact on reliability, CPS Energy issued a statement via email to Bloomberg: "The retirement of the Braunig units is part of our board approved generation plan," wrote CPS Energy. "These power plants are nearing their operational end of life. We will have collaborative discussions with ERCOT during their review process."
To address these reliability issues, the Energy Alliance has proposed ending subsidies for renewables and requiring renewable generators to bear the costs they have imposed on Texas consumers. The Houston Daily reported that in September 2023, the group urged Governor Abbott to declare an energy emergency and convene a special session of the Texas Legislature to eliminate all subsidies for renewable energy.
