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Sparks

The Texas Grid Is Bracing for Another Freeze

Temperatures aren’t supposed to get nearly as low as winter 2021. The doesn’t mean folks aren’t worried.

Power lines.
Heatmap Illustration/Getty Images

Winter has begun to arrive in Texas. In the panhandle, temperatures are expected to get as low as 22 degrees Fahrenheit on Monday, while the National Weather Service forecast office in Amarillo told residents to brace themselves for Tuesday, when “temperatures will plummet to some 20 to 30 degrees below normal.” The more populous parts of the state can expect more cold weather later this week and next; in Austin, lows could dip below freezing by Sunday and into next week, while in Dallas, the thermometer could reach down to 25 this weekend. Austin could have ice, possibly leading to snarled traffic and the occasional downed power line thanks to a gliding car.

None of this is any match for Winter Storm Uri, which paralyzed the state in February 2021, causing a multi-day blackout that killed more than 200 people. But any winter cold stretch in Texas will bring up questions about how the state’s unique electricity system will handle it. “It’s deep in the Texas psyche now, and anytime it gets really hot or really cold the grid is front of mind,” said Joshua Rhodes, a research scientist at the University of Texas.

The vast majority of Texas is on its own electric grid, and the state’s electricity market for businesses and households is far less regulated than anywhere else in the country — Texas households have more options about where they can purchase electricity from, for instance, and the offerings tend to be less standardized.While Texas does typically have low electricity prices, the system can also lead to massive spikes in what households pay. After Uri, when some customers who did still have power faced charges in the five figures, utilities regulators capped prices at $5,000 per megawatt hour.

As in much of the South, Texan households are more like to use electricity to heat their homes, which makes a blackout during a prolonged cold snap extra deadly. The failures during Uri triggered a slew of reports and investigations into what happened and who profited from it. The Federal Energy Regulatory Commission found a lack of weatherization across the board, but especially in the natural gas system, which was behind 87% of all generation outages, some due to distribution failures and others due to power production issues. There were wind outages, as well, thanks to iced turbine blades.

“ERCOT” — the Texas electricity authority — “says they’re ready, but they say they’re ready all the time,” said Ed Hirs, an energy economist and lecturer at the University of Houston. “There’s a credibility issue.”

There has been substantial winterization across the entire system since Uri, Rhodes said. Considering the expected lows will be around 12 degrees higher this week than they were during Uri, Rhodes added, “if any power trips offline for temperature issues, then that would worry me because that means we haven’t done our jobs.”

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Sparks

Rewiring America Slashes Staff Due to Trump Funding Freeze

The nonprofit laid off 36 employees, or 28% of its headcount.

Surprised outlets.
Heatmap Illustration/Getty Images

The Trump administration’s funding freeze has hit the leading electrification nonprofit Rewiring America, which announced Thursday that it will be cutting its workforce by 28%, or 36 employees. In a letter to the team, the organization’s cofounder and CEO Ari Matusiak placed the blame squarely on the Trump administration’s attempts to claw back billions in funding allocated through the Greenhouse Gas Reduction Fund.

“The volatility we face is not something we created: it is being directed at us,” Matusiak wrote in his public letter to employees. Along with a group of four other housing, climate, and community organizations, collectively known as Power Forward Communities, Rewiring America was the recipient of a $2 billion GGRF grant last April to help decarbonize American homes.

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The company managed to put a positive spin on tariffs.

A house with solar panels.
Heatmap Illustration/Sunrun, Getty Images

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Hardware makes up about a third of the company’s costs, according to Powell. “This cost will increase from tariffs,” she said, although some advance purchasing done before the end of last year will help mitigate that. All told, tariffs could lower the company’s cash generation by $100 million to $200 million, chief financial officer Danny Abajian said.

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Meta and Microsoft both confirmed plans to invest heavily in AI infrastructure.

Meta headquarters.
Heatmap Illustration/Getty Images

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Shares of Vistra, which has a fleet of power plants including nuclear, natural gas, coal, and renewables, are up almost 7% in early afternoon trading. Constellation, one of the largest nuclear producers in the country, is up 8%. GE Vernova, which makes in-demand gas turbines, is up 4%. Chip designer Nvidia’s shares are up 4%.

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