Texas leads US in modernizing electric grid

Texas Tribune:

Texas ranks first out of 41 states for modernizing its electric grid, according to a new report — although that doesn’t mean Texans pay significantly less for electricity, or that the grid is safe from strain due to high demand this summer.

In a new “Grid Modernization Index”compiled by the Washington, D.C-based GridWise Alliance, Texas and California tied for the highest score. The nonprofit group, a coalition of industry and other stakeholders, ranked 41 states and the District of Columbia based on what they’re doing to improve their grids. (Data for the remaining nine states wasn't available, and the report's authors declined to name the lowest scorers.)

Neither state ranks particularly well on the price of electricity, however. In May, Texas residential customers paid an average of 11.6 cents per kilowatt hour, the 26th-lowest price of all states. Californians paid just over 16 cents, a lower rate than only six other states, according to the federal Energy Information Administration. Current prices in Texas are up significantly compared with last year, too.

“We were surprised” that prices and scores on the index didn’t seem to be related, said Becky Harrison, CEO of GridWise Alliance. Still, she said, “Texas is doing a really good job.”

Harrison said the fact that Texas is a “retail choice” state — meaning customers must be served by competitive suppliers — heavily boosted its score. The federal government has also often pointed to Texas as a leader in retail choice. She added that distribution companies here have been monitoring their grids more closely than those in other states, and are quickly rolling out smart meters, which measure electricity usage more accurately.
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Texas has a significant cost advantage over California which has to be a plus for manufacturing companies looking to relocate.  It should also be a plus for tech companies that have high energy needs.