“The Texas educational system inundates the children with the almost mythical stories of Sam Houston, Stephen F. Austin, and other Texan heroes. This perpetuates the feeling that Texans are superior to others. Social Identity Theory claims that in-group biases are a direct need to feel superior to another group. By reinforcing such ideals of Texas history at an early age, they are indirectly making Texans feel superior to other states.”

Don’t mess with Texas, Justin R.Erenkranz, retrieved on February 18, 2021

In fact, Texans are so proud of their state, and so confident in themselves, that their power grid, run by ERCOT – Electric Reliability Council of Texas, has no connections linking it to the outside world.
Yes, your eyes are OK. Texas – most of it, anyway, cannot import electric energy. No matter what!

For those who know anything about power management, this is insane.
For the rest of the people, this sounds like gibberish.

Who cares where the power comes from?!?

Until it stops coming… exactly when you need it most!

Texas produces and consumes more electricity than any other state, but it is the only state in the continental United States that runs a stand-alone electricity grid, which was designed to keep the state’s energy system independent and isolated from other markets.

‘OK. But surely, there are also other systems which are independent. And isolated. What about Hawai’i? It’s too far away to connect itself with anybody else and it’s doing just fine.’

True enough. And I can name a few more, easily. Only most of them are independent because they are isolated, not by design.
And, exactly because they are isolated, they are run with utmost care. More precautions are taken than in ‘normal’ situations.

‘Precaution’ meaning, in this case, spare capacity.
The responsible people running those systems make sure that, when push comes to shove, somebody is there to deliver the goods. The megawatts of power.

Since 2010, ERCOT’s reserve margin – the buffer between what it can produce vs. forecasted demand – has dropped to about 10% from about 20%. This has put pressure on generators during electricity demand spikes, making the grid less flexible, NERC said.

NERC stands for North American Electric Reliability Corporation. Which corporation, in December 2020, had released “a long term reliability study” maintaining that “ERCOT’s market and system operations have been successful over the last several years even as demand has continued to rise in Texas“. It was the same study which had mentioned that the grid was becoming “less flexible“….

SEC Rule 156 requires mutual funds to tell investors not to base their expectations of future results on past performance before they invest.

Oops…

Reality is an Acquired Taste.

Past performance is not… John Brown, Forbes, 2016

Maybe we need to reconsider our infatuation with ‘just in time management’.
While ‘just in time management’ maximizes profits by streamlining inventory, it works its magic only when everything goes according to plan. And the stricter the streamlining, the harsher the consequences of anything not going according to plan!

As people in Texas have just learned.

And there’s something else which bothers me ever since I’ve started writing this post.
How much sense does it make to be able to pipe oil all the way down from Canada to the refineries lining the Gulf of Texas when you end up freezing to death because you don’t have enough electricity to operate those refineries?!?

And no, I’m not making fun of the ordinary people who suffer the consequences!
This being the moment when I feel the need to remind you that the author of this blog – that’s me, tries to asses the consequences of our limited consciousness. Of the fact that none of us knows much. And, furthermore, that very few of us admit that!
Which consequences might be – as too often are, tragic.

Specially when those who are not aware that their knowledge is limited happen to be invested with critical decision power.