Why Does Texas Have Its Own Separate Grid?
Is a Separate Grid Good for Texas? The Texas ERCOT grid has been separate from the rest of the US for years. But why is that? Learn some of the history and how it affects Texas electricity rates. Texas is famous for doing things its own way, and that includes how it runs its power grid. Most of the state is served by ERCOT, which operates as a separate grid from the rest of the country. This unique setup affects reliability, regulation, and how Texas power markets work. Understanding why Texas chose this path helps explain both the benefits and the risks of staying isolated. How ERCOT Became an Island The roots of the separate grid go back to the mid 1900s. Texas utilities first linked their systems mainly to share power within the state. When federal regulation of interstate electricity expanded in the 1970s, Texas leaders and utilities chose to limit links to other states. This way, avoiding interstate power sales also meant avoiding federal oversight. Texas could do what it wanted....