April 4, 2008, The Wind Coalition
Austin – A recent study conducted by the Wind Coalition shows proposed transmission improvements being considered by the Texas Public Utilities Commission will save consumers more than $3 billion annually in electric costs. A report just released by ERCOT listed costs ranging from $2.3 to $6.3 billion for the construction of new transmission lines, but when savings tied to lower fuel costs and competition in the market are factored in, ratepayers realize huge savings.
“This investment will pay for itself in two years and will displace more expensive energy offering a savings to Texas consumers of about $3 billion per year,” executive director of the Wind Coalition Paul Sadler said. “There is no question this type of investment is exactly what the state should be doing, and when you look at the numbers it is clear ratepayers come out ahead.”
“Every wind-generated megawatt added to the system is good for the economy, environment and electricity customers,” said Sadler. “Transmission costs will be more than offset by the savings realized from lower fuel costs as we bring additional wind capacity onto the grid.”
“Not only will consumers realize cost savings in the billions of dollars, emissions reductions will be substantial as we add wind capacity because it is a completely clean, renewable source of energy,” said Sadler.
With the Public Utility Commission set to review the ERCOT findings related to the development of Competitive Renewable Energy Zones (CREZ), Sadler pointed to data extrapolated from a December, 2006 ERCOT report titled “Analysis of Transmission Alternatives for Competitive Renewable Energy Zones in Texas”, as well as a March 21, 2008 draft report done by General Electric at ERCOT’s request, titled “Analysis of Wind Generation Impact on ERCOT Ancillary Service Requirements.” Both studies calculated fuel costs, and environmental impacts, from added wind capacity. Both studies suggest fuel cost savings of $18 billion over ten years for the addition of 11,553 MW of wind generation.
Texas currently leads the nation in wind production, thanks to forward-looking policies passed by the legislature to increase renewable production, and a regulatory climate that is conducive to growth in the renewable sector. Texas will also host a national conference on wind energy in June sponsored by the American Wind Energy Association.
“Wind energy saves consumers money and protects the environment by increasing air quality and decreasing water consumption,” said Sadler. “Furthermore, the cost of transmission improvements are spread out over time, while fuel savings are immediate once additional wind capacity is plugged into the grid.”
“The greatest protection we can offer to ratepayers is to provide a diverse mix of energy sources for power production so Texans don’t suffer rate shock when one particular commodity experiences a price spike,” said Sadler. “These proposed investments will benefit the system as a whole, not just wind energy producers, increasing the stability and reliability of the grid while decreasing the potential for power losses. Added wind capacity makes our state less dependent on natural gas and petroleum for electricity, which in turn will keep prices down and electricity flowing to millions of Texas electric consumers.”
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