The Texas economy is changing. The service sector and light
manufacturing companies are growing rapidly. The new, high-technology
companies rely on computers and the microchip to speed information and
products to consumers. But the emerging information economy depends on
electric power. So do our air conditioners, answering machines, personal
computers, microwave ovens, tape recorders and a panoply of other
consumer products.
The burgeoning Texas economy and the state's rapidly growing population
have caused a surge in demand for electricity. From 1970 to 1990,
electricity consumption in Texas more than doubled. Without a change in
the pattern of consumption or major conservation efforts, the demand for
electricity in Texas will require utilities to build 90 new power plants
over the next 15 years. These new plants could increase the state's
electrical capacity by almost 25 percent.
Texas produces and consumes more electricity than any other state. In
1991, Texans paid $14 billion for electricity while consuming 241
million megawatt hours of electricity. Twenty-seven electric utilities
are currently operating 312 generating stations in Texas. These
facilities have a combined net capacity of 60,687 megawatts. Of the 27
utilities, nine are investor-owned, five are electric cooperatives, five
are federal or state agencies and eight are owned by municipalities.
Much of the new demand for electric power is coming from the residential
sector, where electricity consumption is growing rapidly. In 1970,
electricity accounted for 32 percent of the energy needs in the average
home. By 1990, electricity supplied 54 percent of residential energy
needs. By the year 2000, that figure is expected to rise to 56 percent
and by the year 2030, electricity may supply 61 percent of all home
energy needs.
In 1992, Texas energy consumers paid about 6.5 cents per kilowatt hour
for electricity. The Public Utilities Commission of Texas estimates that
by the year 2000, consumers will be paying 10.4 cents per kilowatt hour.
In addition to the rising cost of electricity, Texas is facing
environmental problems caused by electricity production. Texas is the
country's largest consumer of coal (more than 90 million tons per year),
and the power plants that burn coal pump millions of tons of carbon
dioxide, sulphur dioxide (which can cause acid rain), nitrogen oxide and
other pollutants into the atmosphere every year. (See Air Chapter for
further discussion.)
In 1977, natural gas accounted for 86 percent of the fuel used to
generate electric power in Texas. But in 1978, Congress passed the
Powerplant and Industrial Fuel Use Act, which required utilities to
phase out the use of natural gas as a boiler fuel by 1990. Designed as a
response to perceived natural gas shortages, this requirement was later
repealed when new gas supplies were discovered. However, by then, many
Texas energy companies had begun developing coal supplies, which were
viewed as a way to diversify their power-generation base. Today, about
40 percent of all the electricity consumed in Texas is derived from the
burning of natural gas. Half of the state's electricity is derived from
burning coal. The balance comes from nuclear power, hydropower and
renewables.
In 1990, electric power generation in the state produced 66 percent of
the total sulfur dioxides, 37 percent of total nitrogen oxides and 35
percent of all the carbon dioxide emitted into the air in Texas. As
noted above, coal-fired power plants have been linked to acidification
in several East Texas lakes. The same lakes have also been contaminated
by selenium, a heavy metal linked to the coal-fired power plants.
The question of global warming has also not been fully assessed.
Scientists from around the world believe that carbon dioxide buildup in
the atmosphere will cause a gradual warming of the Earth, which could
have catastrophic effects on agriculture and coastal zones. Fossil
fuel-fired electric power plants produce millions of tons of CO2 per
year. (See section on air). Some environmental groups favor new
regulations that would change the way Texas' energy utilities operate.
Called integrated resource planning, the program would encourage
utilities to increase efficiency programs. In addition, it would require
utilities to take into account the cost of the pollutants that they
emit. Many other states, including Nevada, Oregon and New York have
adopted similar regulations. But thus far, the Texas Legislature has not
required Texas power producers to factor efficiency and pollution issues
into their decision-making process.
Advances in efficiency could help slow the demand for electricity. High
efficiency appliances, lights and motors could go a long way toward
reducing Texas' demand for electricity.
Cogeneration
Electricity is inherently inefficient to produce. Up to two-thirds of
the heat energy in a fuel source is lost while making electric power.
Cogeneration is a process that generates electricity and heat at the
same time. Cogeneration units are up to 50 percent more efficient than
standard power plants. Industrial users were among the first to embrace
cogeneration because it allows large industrial plants to generate
electricity while using the heat for industrial processes. In addition,
cogeneration units are advocated by some energy analysts because they
are cheaper to build than large power units.
Between 1980 and 1992, the amount of electricity derived from
cogeneration has increased tenfold. Texas now gets more than 7,300
megawatts of power from cogeneration plants. At present, 80 percent of
the state's cogeneration plants are operated by petrochemical and
chemical producers along the Gulf Coast.
Federal regulations require local utilities to purchase excess power
from cogeneration facilities. And because of its efficiency,
cogeneration is expected to increase. By 2005, some 10,000 megawatts of
cogeneration capacity are predicted to be available in Texas.
http://www.texascenter.org/almanac/Energy/ENERGYCH7P3.HTML
