Why Texas Has Its Own Power Grid
Texas has its own grid so that Texas, not Washington, regulates its wholesale power market. The Federal Power Act gives the Federal Energy Regulatory Commission (FERC) authority over electricity sold across state lines. The ERCOT grid is not synchronously connected to the Eastern or Western grids, so its power stays inside Texas and its market answers to the state.
The grid is not sealed off. A few direct-current ties link ERCOT to the Eastern grid and to Mexico. Together they can import at most 1,220 MW, 820 MW of it from the East, according to the federal report on the 2021 freeze. That is about 1% of the 91,089 MW record set in July 2026.
The separation cuts both ways. During the February 2021 storm, the same report found, “all frequency response must come from resources internal to ERCOT” because the grid is not tied to its neighbors. Federal reliability standards, written by the North American Electric Reliability Corporation (NERC), still apply in Texas.
Key facts
Who Runs and Owns ERCOT
No one owns ERCOT the way a company is owned. ERCOT is a membership-based 501(c)(4) nonprofit corporation that runs the grid and settles the wholesale market. It answers to the Public Utility Commission of Texas (PUC) and the Legislature (ERCOT). It does not own power plants or power lines.
Since 2021, state officials pick ERCOT’s board. SB 2 created a selection committee of three people, one each named by the governor, the lieutenant governor and the House speaker. That committee chooses eight board members. The PUC chair sits on the board without a vote.
Who controls the Texas grid, and how
Power plants are owned by private companies, cities and cooperatives. Your wires belong to a transmission and distribution utility. In the competitive areas, about 8 million homes and businesses, you buy power from a retail company you choose (ERCOT).
Will Texas Have Blackouts This Winter?
No one can promise either way, and winter is the riskier season. NERC’s January 2026 long-term assessment rated ERCOT an “elevated risk” through 2027. It said most of ERCOT’s shortage risk falls in winter, driven by how far cold weather can push demand (NERC).
New gas plants are coming online, and state-funded ones are among them (see what changed). ERCOT publishes a Monthly Outlook for Resource Adequacy two months ahead of each month on its resource adequacy page. The December 2026 outlook is due in early October.
If supply runs short, ERCOT raises its warnings in steps. Rotating outages come only at the end.
How ERCOT warns Texans before rotating outages
- 3-5 days ahead Weather Watch Forecast of severe weather and high demand. Nothing to do yet except watch updates.
- A day or so ahead Voluntary Conservation Notice ERCOT asks Texans to cut use during set hours, if safe to do so.
- Same day Conservation Appeal Reserves are low enough that emergency operations are possible. Cut use during the appeal window.
- In an emergency Emergency Alert and rotating outages ERCOT can order utilities to cut power to neighborhoods in turns to keep the whole grid from collapsing.
Sources: ERCOT, Texas Advisory and Notification System (TXANS); FERC-NERC report, November 2021. TXANS notices do not replace ERCOT emergency alerts.
Sign up for ERCOT’s TXANS notices by email or through the ERCOT app.
What to Do in a Grid Emergency, by Situation
Most deaths in 2021 came from cold and from unsafe heat sources, and both are preventable. Open the situation closest to yours.
What to do, by situation
Open the one closest to yours.
ERCOT issued a conservation notice or appeal
- During the stated hours, set the thermostat a few degrees closer to the outdoor temperature if that is safe for your household.
- Delay the dishwasher, laundry and electric vehicle charging until the window ends.
- Charge phones, medical batteries and power banks before the window starts.
ERCOT asks for cuts only "if safe to do so." Never risk heat illness or cold exposure to save power.
My power is out and it is freezing
- Never run a generator, grill, camp stove or car in a home or garage, even with a door open. Carbon monoxide killed 19 Texans in 2021.
- Dress in layers, close off unused rooms, and gather everyone in one room.
- Keep space heaters away from anything that can burn. Fires killed 10 more.
- If it is not safe to stay, go to a warming center. Your city or county announces locations.
- Report the outage to your wires utility (the company named on your bill for delivery), not to ERCOT.
Texas DSHS confirmed 246 deaths from the 2021 storm; 158 were hypothermia.
Someone at home depends on powered medical equipment
- Ask your doctor to submit the PUC critical care application to your wires utility. A physician must sign it.
- A critical care designation for life-sustaining equipment lasts two years. A chronic condition designation lasts 90 days or one year.
- Plan anyway: backup batteries, a list of places with power, and a ride. The designation does not guarantee your power stays on.
PUC rule 16 TAC 25.497 says designation "does not guarantee the uninterrupted supply of electricity." It adds notice and disconnection protections.
I am picking an electricity plan
- Compare fixed-rate plans on the PUC site Power to Choose and read each plan's Electricity Facts Label.
- Check the price at your real usage. Texas homes averaged about 1,100 kWh a month in 2024, more in summer.
- Watch for minimum-usage fees, bill credits that apply only at one usage level, and early termination fees.
- A plan that passes real-time wholesale prices straight to a household is now illegal for homes. If a seller offers one, report it to the PUC.
HB 16 (2021) bars retailers from offering wholesale indexed plans to residential and small business customers.
Winter Storm Uri, 2021
Texas confirmed 246 deaths from the February 2021 winter storm, across 77 counties. 65.4% died of extreme cold, most of them from hypothermia. Others died when dialysis, oxygen or medical devices failed, in crashes on icy roads, and from carbon monoxide and fires as people tried to heat their homes.
| Category | Value |
|---|---|
| Hypothermia and frostbite (extreme cold) | 161 |
| Worsened illness (dialysis, oxygen, medical devices) | 25 |
| Motor vehicle crashes | 22 |
| Carbon monoxide poisoning | 19 |
| Fires | 10 |
| Falls and other trauma | 9 |
Source: Texas DSHS, February 2021 Winter Storm-Related Deaths, December 30, 2021, deaths confirmed as of October 27, 2021 (N = 246).
The true toll is likely higher. A BuzzFeed News analysis of excess deaths estimated 702 people died because of the storm in the week ending February 20, within a range of 426 to 978 (BuzzFeed News, May 2021). The federal inquiry counted “at least 210.”
What failed, according to FERC and NERC. Across Texas and the South Central U.S., 1,045 generating units had 4,124 outages, cuts or failures to start. 44.2% were caused by freezing equipment and 31.4% by natural gas supply problems, 75.6% combined (FERC-NERC report).
- 20,000 MW
- Power ERCOT cut at the worst point
- 4.5 million
- Texans who lost power, some for four days
- 4+ minutes
- Grid frequency stayed below the level where plants trip off
The report called the event “the largest controlled firm load shed event in U.S. history.” Grid frequency stayed below the level where plants begin tripping off for more than four minutes, the report found, risking a complete blackout of the ERCOT grid.
What Texas Changed After Uri
Texas now requires power plants to winterize, has banned wholesale-priced home plans, has put state officials in charge of ERCOT’s board, and is lending money to build gas plants. Here is where each stands.
Texas grid changes since 2021
As of September 28, 2026
- Weatherization rules for plants and power lines (SB 3) Law, PUC rule 25.55
Plants must finish winter preparations by December 1 each year; SB 3 allows penalties up to $1 million a day per violation. (source)
- Gas supply weatherization (SB 3) Law, Railroad Commission
Gas facilities the Railroad Commission designates as critical must prepare for weather emergencies, with penalties up to $1 million per offense. (source)
- ERCOT board picked by state leaders (SB 2) Law
A committee named by the governor, lieutenant governor and speaker selects eight board members. (source)
- Ban on wholesale-indexed home plans (HB 16) Law
Retailers may not offer residential or small business customers plans that pass through real-time prices. (source)
- Texas Energy Fund loans for gas plants (SB 2627) Agency action, 8 loans
As of June 24, 2026, $3.65 billion in 3% loans for 4,994 MW; 916 MW online so far. (source)
- Large loads and data centers (SB 6) Law, PUC rules in progress
Loads of 75 MW or more must report backup generators; in an emergency, sites with backup can be ordered to switch to it or cut use. PUC must revise transmission charges by December 31, 2026. (source)
Source: Texas Legislature enrolled bills; PUC rules and Texas Energy Fund page
The Texas Energy Fund is short of its goal. Voters approved it in November 2023, and lawmakers have put $9 billion into it. The loan program aims for 10,000 MW of new plants that can run on demand. Signed loans cover 4,994 MW, and two of the plants, 916 MW, had come online by June 2026. The PUC says it must make first payments on approved loans by December 31, 2026.
ERCOT Demand Records and Data Centers
ERCOT’s peak demand record has risen 21.7% since 2019, to 91,089 MW on July 22, 2026. The gain of 16,269 MW is enough to serve about 4.1 million homes at peak, by ERCOT’s estimate of 250 homes per megawatt. The record is up 51.1% since 2005.
| Category | Value |
|---|---|
| 2005 | MW60274 |
| 2009 | MW63400 |
| 2010 | MW65776 |
| 2011 | MW68379 |
| 2015 | MW69877 |
| 2016 | MW71110 |
| 2018 | MW73473 |
| 2019 | MW74820 |
| 2022 | MW80148 |
| 2023 | MW85508 |
| 2026 (preliminary) | MW91089 |
Source: ERCOT, Yearly Peak Demand Records, updated August 18, 2026. Only years that set a new record are shown. The 2026 figure is preliminary until final settlement.
The growth is not slowing. NERC reports that ERCOT expects its summer peak to climb from 94,650 MW in 2026 to 154,077 MW in 2035, up 63%, driven mostly by large new loads such as data centers (NERC).
SB 6, passed in 2025, is the state’s first answer. New sites of 75 MW or more pay at least $100,000 for grid studies and must report their backup generators. In an emergency, ERCOT can have sites with backup switch to it or cut use.
Where Texas Electricity Comes From
Natural gas made 40.5% of ERCOT’s power in 2025, and wind and solar together made 36.9%. By ERCOT’s count, solar produced more power than coal in 2025.
- Natural gas (40.5%)
- Wind (23.2%)
- Solar (13.7%)
- Coal (12.7%)
- Nuclear (8.5%)
- Other (hydro, biomass, other) (1.3%)
Source: ERCOT, Fuel Mix Report 2025, annual totals, posted March 9, 2026. Shares of gross generation; battery charging is excluded.
Each fuel carries its own risk. In 2021, frozen equipment and gas shortages took down plants of every kind. Outside winter, NERC says ERCOT’s tightest hour is around 9 p.m., when solar output drops while demand stays high.
Texas Electricity Prices and Bills
Texas homes pay about 12% less per kilowatt-hour than the U.S. average, but their monthly bills run higher because they use more power. From January through July 2026, Texas residential power averaged 16.1 cents per kWh against 18.2 cents nationally (EIA).
- 16.1 cents
- Texas residential price per kWh, 2026 so far (U.S. 18.2 cents)
- $164
- Average Texas monthly home bill in 2024 (U.S. $142)
- 27% more
- Power used by the average Texas home than the U.S. average, 2024
The average Texas home paid about $21 a month more than the U.S. average in 2024 (EIA, Table 5A). Texas prices rose 5.7% from the first seven months of 2025 to the same months of 2026.
Common Questions About the Texas Grid
Why does Texas have its own power grid?
Because keeping the grid inside Texas keeps it out of federal rate regulation. The Federal Power Act gives FERC authority over wholesale power sold across state lines, and the ERCOT grid is not synchronously connected to the rest of the country, so its wholesale market is regulated by Texas instead. Federal reliability standards from NERC still apply.
Who owns ERCOT?
No one owns ERCOT in the usual sense. It is a membership-based 501(c)(4) nonprofit corporation, overseen by the Public Utility Commission of Texas and the Legislature. Since 2021, its voting board members are chosen by a committee appointed by the governor, the lieutenant governor and the House speaker.
Is ERCOT a government agency?
No. ERCOT is a private nonprofit that runs the grid and the wholesale market under rules set by the Public Utility Commission, a state agency whose commissioners the governor appoints.
Is the Texas power grid connected to other states?
Only through a few direct-current ties. Together they can import at most 1,220 MW, 820 MW of it from the Eastern grid, a small fraction of a peak near 91,000 MW.
Will Texas have blackouts this winter?
No one can promise either way. NERC rated ERCOT an elevated risk through 2027 and said most of its risk is in winter, when cold drives demand up. ERCOT publishes a monthly outlook two months ahead. Rotating outages happen only if ERCOT orders them in an emergency.
How many people died in the 2021 Texas freeze?
Texas DSHS confirmed 246 deaths, 158 of them from hypothermia. A BuzzFeed News analysis of excess deaths estimated 702, and the federal report counted at least 210. The counts differ in method, not in what happened.
What You Can Do
- Sign up for grid alerts through ERCOT’s TXANS and your local emergency alerts.
- Get a critical care designation if anyone in your home depends on powered medical equipment, and make a backup plan anyway.
- Keep a carbon monoxide detector with fresh batteries, and never heat a home with a grill, stove or car.
- Shop for a fixed-rate plan on the PUC’s Power to Choose and read the facts label before you sign.
- Ask your state legislators how they will keep up with data center demand and who should pay for new plants and lines. The Legislature next meets in January 2027. Find your members with Who Represents Me and use our letter-writing guide.