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Compassionate Competition?

With its own private power grid, Texas thinks it's got restructuring licked.

Fortnightly Magazine - February 1 2001

exception of renewables and fuel cells) on the ostensible grounds that, as stated in the rule, 'increased use of small electric generating units could undermine the emission reductions achieved with recently permitted combined-cycle power plants.'"

Senate Bill 7 requires a 50 percent reduction for NO x emissions and a 25 percent cut for SO2 for grandfathered plants by May 2003. As ERCOT acknowledged in January 2000 in a study of generating plants in the Dallas/Ft. Worth area, such rules may force power producers to take generating plants out of service in the Dallas area. ERCOT commented further in a report on potential electric system constraints released Oct. 1:

"The DFW area could experience significant problems of peak period supply adequacy and voltage stability if significant amounts of the in-area generation become unavailable and no new in-area plants are built. … A number of new merchant power plants are being planned or built in North Texas, but all are outside the … metro area. Greenfield sites for new generation development are limited and are likely to encounter public opposition."

Sound familiar?


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