ERCOT and the Texas Power Grid: What Houstonians Should Know

By The Change Lab -- via manual_seed -- Apr 18, 2026

Overview

Texas runs its own electric grid — separate from the rest of the country. ERCOT (Electric Reliability Council of Texas) manages 90% of it, covering 26 million customers. This independence means Texas sets its own rules. It also means that during extreme weather, Texas cannot easily import power from neighboring states.

Winter Storm Uri in February 2021 proved what happens when the grid fails — 4.5 million homes lost power, hundreds of people died, and the state faced billions in damages. Understanding how the grid works is not academic. It is survival knowledge for Houstonians.

Source: ERCOT; Public Utility Commission of Texas; U.S. EIA

The Framework

Key Ideas

How Texas electricity works:

ERCOT manages the grid — it does not generate or sell power. It balances supply and demand in real time, dispatches power plants, and manages transmission.
Power generators (NRG, Vistra, Calpine, etc.) own the plants that produce electricity — natural gas, wind, solar, nuclear, coal.
Transmission companies (CenterPoint in Houston) own the poles and wires that deliver power to your neighborhood.
Retail electric providers (REPs) — you buy electricity from a REP, not from ERCOT or CenterPoint. Texas has a deregulated market, which means you can choose your provider and rate plan.

Deregulation explained: In most of Texas (including Houston), you shop for electricity like you shop for a phone plan. Dozens of companies offer different rates, contract lengths, and renewable options. Compare at powertochoose.org — the official PUC comparison tool.

Why the grid is vulnerable:

Texas is an electrical island — limited connections to the Eastern and Western grids.
Natural gas supplies 40%+ of ERCOT generation. When gas wells freeze (2021) or demand spikes (summer heat), supply drops.
Wind and solar are growing fast (30%+ of capacity) but are intermittent.
After 2021, Texas passed weatherization requirements, but implementation and enforcement remain debated.

Source: ERCOT; PUC; Texas Legislature (SB 3, 2021)

Put It Into Practice

Practice

Protect yourself:

Choose your electric plan wisely. Compare rates at powertochoose.org. Fixed-rate plans protect you from price spikes. Avoid variable-rate plans unless you understand the risk.
Know your contract. Check your contract end date — auto-renewals often switch you to a higher rate.
Watch ERCOT conservation alerts. When ERCOT issues a conservation appeal, reduce usage: raise your thermostat to 78-80°F, avoid running laundry/dishwasher during peak hours (3-7 PM), turn off unnecessary lights.
Prepare for outages. Keep flashlights, batteries, a battery-powered radio, bottled water, and non-perishable food. If you rely on medical equipment, register with CenterPoint as a critical care customer.

Report a power outage: