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Texas’s Power Woes Are Just the Latest Reminder of the Danger of Privatization

By Donald Cohen - Truthout, February 17, 2022

Texas dodged a bullet earlier this month when its statewide power grid, operated by the Electric Reliability Council of Texas (ERCOT), held up during a drop in temperatures. But that’s not because state leaders, particularly Republican Gov. Greg Abbott, learned anything from last year’s horrific storm.

As Truthout’s Candice Bernd reported last week, not only did 70,000 Texans still experience power and utility services outages during the recent cold snap, but fracked gas production also saw its biggest dip in production since the February 2021 grid failure, revealing the industry’s continued vulnerability to extreme weather.

Last year, Winter Storm Uri blanketed the entire state with freezing temperatures and snow for several days, causing record energy demand. This forced ERCOT to tell energy providers to cut power as they tried to avoid a total collapse of the energy system. Nearly 5 million people lost power and at least 246 died as a result of the storm.

The latest freeze was a more typical Texas cold front. Local power outages were caused mainly by downed power lines due to trees and ice. Still, Abbott is claiming that the system is more reliable and resilient than it’s ever been.

Experts disagree. “The thing about [this month’s freeze] is, we passed the test, but it was also a really easy test, and we didn’t pass it with perfect scores,” Michael Webber, Josey Centennial Professor in Energy Resources at the University of Texas, told Truthout’s Bernd. “There’s a lot of people who had problems with their power, and there was still the gas production drop, so I think we shouldn’t take away too much false confidence that we’re all good now.”

Texas’s energy system is controlled by a complex mix of public and private actors, including the nonprofit ERCOT, oil and gas companies, the Texas Railroad Commission, and others. The details don’t matter as much as what makes the state’s system unique: It’s independent; not connected to the country’s two other national grids, the Western Interconnection and the Eastern Interconnection; and not subject to federal oversight.

This has allowed it to become one of the country’s most marketized systems, according to Johanna Bozuwa, director of the Climate and Community Project. It’s heavily deregulated, designed to allow for intense competition in the retail sale of electricity. As one portfolio manager at a financial firm put it, it’s a “Wild West market design based only on short-run prices.”

The Great Texas Freeze: Lessons One Year Later

By Timothy DenHerder-Thomas, Gopal Dayaneni, and Mateo Nube - Movement Generation, February 9, 2022

The visibility of ecological crisis is increasing every day. Last year’s cold snap in Texas, and the corollary collapse of its energy infrastructure, was but one example of this fact. Humanity is up against the limits of nature’s ability to tolerate globalized industrial production.

What actions would better position Texans to navigate the next superstorm in a favorable manner? Furthermore, how can we reimagine and reconstruct energy systems around the country, so that these dance in a regenerative rhythm with our planet’s life support systems?

The clock is ticking, and we need to make new meaning out of this pivotal moment in planetary history. We can no longer tinker around the edges of an ever-expanding crisis: Tackling this reality with clarity may be the biggest and boldest challenge our species has ever faced.

Here are some important strategic frameworks, formulated by Movement Generation, that we think will help us meet the challenge:

Transforming Eskom: Working Class Climate Justice

Transforming Eskom: Africa’s Biggest Polluter

Transforming Eskom: Youth Securing a Just Climate Future

(TUED Working Paper #14) Beyond Disruption: How Reclaimed Utilities Can Help Cities Meet Their Climate Goals

By Sean Sweeney and John Treat - Rosa Luxemburg Stiftung, November 3, 2021

In TUED Working Paper 14, Beyond Disruption: How Reclaimed Utilities Can Help Cities Meet Their Climate Goals, Sean Sweeney and John Treat showcase how the energy transition that was promised has yet to come to fruition. They argue specifically the arguments around cities leading the transition have not been fully accurate and provide a sober analysis of where we stand.

As Sweeney and Treat argue, “the incumbent energy companies will not be dis­rupted out of existence; rather, they will remain dominant as market players and, under the current neoliberal framework, they will help perpetuate an energy for profit regime. If this is not changed, then cities will not be able to reach their energy and decarbonization targets. There is a need, therefore, to develop an alternative approach, one that goes beyond disruption (in a politi­cal sense).”

Through the piece they outline an “alternative approach that is offered shifts attention away from disruption of the incumbent companies toward the need to focus efforts on reclaiming these companies to public ownership.”

This Working Paper, released during COP 26 in Glasgow provides a clear-eyed analysis of the challenges ahead but also highlights an alternative public-goods approach to overcoming the worst of the crisis. Download the PDF here.

Read the text (PDF).

A Green New Eskom: Transforming Power, Transforming South Africa

By staff - Climate Justice Coalition, November 2021

The campaign for a Green New Eskom is being led by the Climate Justice Coalition, a coalition of South African civil society, grassroots, trade union, and community-based organisations. We are calling for a rapid and just transition to a more socially owned, renewable energy powered economy, providing clean, safe, and affordable energy for all, with no worker and community left behind in the transition.

The Problem: Eskom’s old, unreliable and polluting coal power stations plunge us into rolling blackouts i.e. load-shedding or load reductions. Eskom has been mired in corruption, which has driven it deep into debt, sent electricity prices soaring, and robbed the public purse of trillions of rands.

Looking at Eskom now, it can be hard to think that it can be part of the solution to our problems rather than the cause of them. It can be hard to think of Eskom as anything but a headache, a drain on the taxpayer, and one of the gravest threats to our economy and environment.

The Solution: A better Eskom is possible. One that provides affordable, reliable and clean energy. An Eskom that drives a just transition to a more socially-owned renewable energy future that empowers and benefits communities, workers, businesses and all South Africans.

Not only is a transformed Eskom possible, it is absolutely vital. We simply cannot ensure a prosperous and sustainable future for South Africa without fixing Eskom. This may be one of the biggest and most important tasks in creating a better South Africa for all.

Read the entire statement (PDF).

Clean Power to the People

By Al Weinrub - Organizing Upgrade, October 27, 2021

As predicted, the climate has been screaming out with intensified ferocity at the assault on the earth by the global fossil fuel economy. Extreme weather conditions are wreaking havoc on communities across the world, leading many climate activists in the U.S. and elsewhere to declare a climate emergency, requiring an urgent, intensified transition from fossil fuels to renewable energy.

But thinking of this transition as mainly a shift in energy technology, as de-carbonizing the economy, is to misunderstand the deep roots of the climate crisis in an extractive economic system based on racialized social and economic inequality.

Emphasizing de-carbonization of energy without broad institutional transformation—an approach called carbon fundamentalism—leaves us still at the mercy of the corporate energy establishment. That approach, as we shall see, is actually amplifying the already devastating impacts of the climate crisis. “It ignores the specific needs of people of color, it promotes programs that force low-income people to pay unfairly for carbon reduction, it exposes our communities to increased risks, and it sacrifices justice in the urgent rush to reduce carbon,” says Jessica Tovar of the Local Clean Energy Alliance. “Time and again, it ends up throwing people of color under the bus.”

We need more than clean energy to address the climate crisis. We need to move from a large, centralized private utility model to a locally based, decentralized energy model. We need an energy system centered on democracy and justice.

Puerto Rican Electrical Workers Union Fights Privatization of Island’s Grid

By Ángel Figueroa Jaramillo - Labor Notes, October 26, 2021

The people and workers of Puerto Rico are suffering the consequences of the privatization of our electricity system, which has been handed over to a new company, LUMA Energy, a subsidiary of Houston-based Quanta Services and Canadian firm ATCO.

Our union, UTIER—the Puerto Rico Electric and Irrigation Industry Workers Union—has been fighting for months against the disastrous contract that the Puerto Rican government signed with LUMA to operate our electricity grid for the next 15 years.

Privatization has dismembered the electrical system’s workforce in a transparent attempt to break up our union. LUMA was not required to hire employees of the Puerto Rico Electric Power Authority (PREPA)—the public company whose assets were privatized. Nor did LUMA comply with the existing collective agreements between PREPA and its unions. Instead, LUMA offered reduced benefits and job protections.

LUMA began its contract on June 1 with only half the number of employees PREPA previously had, many of them are untrained and unfamiliar with our electrical system. The result has been ongoing outages and customer service debacles. If a major hurricane had hit Puerto Rico this summer, the outcome would have been much worse.

Plagued by Daily Blackouts, Puerto Ricans Are Calling for an Energy Revolution. Will the Biden Administration Listen?

By Kristoffer Tigue - Inside Climate Newses, October 25, 2021

Many residents say a record amount of incoming federal aid provides a once-in-a-generation opportunity to transition the island to clean energy. So far, the funds are mostly going to natural gas.

Eddie Ramirez has never understood why his government doesn’t more aggressively pursue renewable energy.

When Hurricane Maria swept across Puerto Rico in September 2017, shredding the energy grid and knocking out power for nearly all the island’s 3.4 million residents for months on end, Casa Sol—Ramirez’s five-bedroom bed and breakfast—was one of the only buildings in San Juan with working electricity, with 30 solar panels bolted to its roof.

When a large fire this June at an electrical substation in San Juan plunged more than 800,000 Puerto Rican homes into darkness and knocked out power to another 330,000 the following week, Casa Sol’s lights stayed on, even as its neighbors lost power.

And when a series of equipment failures and poor maintenance led to cascading power outages across the island in August, September and October, leaving hundreds of thousands of Puerto Ricans without electricity for days at a time and prompting calls for Puerto Rico Gov. Pedro Pierluisi to resign, Ramirez and his solar-powered hotel carried on, business as usual.

“We don’t even know when it happens,” Ramirez said of the blackouts, which have become a daily part of life for many Puerto Ricans since June, when the private company LUMA Energy took over the island’s electricity transmission system.

With Puerto Rico’s grid still in shambles four years after Maria’s landfall, and $12.4 billion in federal aid earmarked to help repair the territory’s electrical systems and jumpstart its economy, many Puerto Ricans, like Ramirez, see a once-in-a-generation opportunity to reimagine the island’s tattered power system as a modern grid powered by clean energy and far better at withstanding the worsening threats of the climate crisis.

But many Puerto Ricans worry their political leaders are squandering that opportunity by planning to rebuild the electricity grid with natural gas power plants that continue to emit greenhouse gases and feed lengthy transmission lines that are vulnerable to natural disasters.

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