Texas Tribune
Texans face steep power bills during summer’s extreme heat
by By Carlos Nogueras Ramos, The Texas Tribune – 2024-05-23 11:00:00
SUMMARY: Mary Ann Estrella, a 65-year-old veteran living in Midland, Texas, struggles with unpaid electric bills, forcing her to choose between groceries and electricity. Her predicament is shared by many Texans unable to keep up with rising utility costs. A survey by Payless Power shows one-third of Texans have paid their bills late, and 7% had theirs referred to collections. Agencies like the Community Action Corporation of South Texas and Catholic Charities in Odessa provide assistance, but energy market deregulation and extreme weather exacerbate the issue. Programs like CEAP offer aid, but more systemic solutions are needed to help Texans manage energy costs.
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MIDLAND — Mary Ann Estrella sat on a rented couch last November and ate, by candlelight, her Thanksgiving Dinner: a bologna sandwich.
The lit candles were not for ambiance. They were, for the time being, her only source of light.
She was four months behind on her electricity bill, owing $450. With little money left over from her income — a combined $2,000 among Social Security, medical and disability benefits — the 65-year-old veteran had to choose between paying for groceries and the electric bill.
“I just didn't have the money to pay for it,” Estrella said.
This has been Estrella's reality since moving to Midland, the capital of the oil-rich Permian Basin, three years ago to help her son, Frankie Estrella, raise his newborn.
It's also the reality for thousands of Texans who cannot keep up with the costs of their electric bills.
A recent survey of Texans by Payless Power, a Dallas-based utility company, found that one third of Texans said they paid their electric bills late at least once during the year. And 7% self-reported that their accounts had been referred to a collections agency.
Texans also self-reported that months of extreme weather made it more difficult to pay their power bills.
“It's not a surprise,” said Doug Hairgrove, director of energy programs at the Community Action Corporation of South Texas, an organization providing social, health and financial services to 8,000 households across 16 counties in South Texas, including Hidalgo, Cameron, Nueces and Starr counties. On average, the partnership helps 1,000 people a year with their electric bills. Households on average have owed $1,400, Hairgrove said.
The partnership has already received 52,000 phone calls this year seeking some form of financial relief.
A whiteboard tracking monthly expenses can be seen inside Mary Ann Estrella's kitchen as she prepares homemade dog food inside her apartment in Midland on April 20. At the time, Estrella estimated that $138.97 would be leftover in her budget at the end of April.
Credit:
Reilly Strand for The Texas Tribune
“It's ironic because Texas is supposed to be an energy state. But I do think we kind of get the short end of the stick,” Hairgrove said.
Texas is one of about two dozen states that have a so-called deregulated energy market. It was, at the time when Texas lawmakers established it, pitched as a way to lower electricity bills.
Today, Texas homes are powered by the Electric Reliability Council of Texas, a board-governed nonprofit with two functions.
The first is overseeing the grid, which manages 90% of the state's electricity and serves about 26 million Texans. The grid obtains power from many sources, including oil and natural gas, coal, wind, and solar. Recently, the grid has also introduced batteries.
ERCOT also buys that power from producers and resells it to companies that then sell it as a utility to consumers. Transmission and distribution companies, like Oncor and CenterPoint Energy, deliver that electricity, for which Texas customers also pay a fee. ERCOT relies on generator operators and a computer algorithm to determine the prices.
“ERCOT is the one buyer in the wholesale market and the one seller,” said Ed Hirs, an energy fellow at the University of Houston. Hirs said that the power plants feeding ERCOT's grid only make money when they generate electricity.
ERCOT's system attempts to provide incentives to power companies to produce more energy during peak demand times in the summer and winter by paying a premium. Those price increases are passed on to the utility companies and their customers.
For example, Texans felt the brunt of the rate hikes during Winter Storm Uri in 2021, when the wholesale price of a kilowatt hour rose a staggering 7,400% to $9 from the normal 12 cents per kilowatt-hour.
A group of air conditioning units sit outside of Estrella's Midland apartment.
Credit:
Reilly Strand for The Texas Tribune
In 2023, Texas paid more for wholesale electricity than anywhere else in the country, Forbes reported using data from the Energy Information Administration.
A spokesperson for ERCOT said it is not responsible for how much electric retailers charge their customers. When the demand on the grid outweighs the amount of electricity the sources of power can generate, “the wholesale cost of energy could increase as more expensive generation would be required” to keep up, they said.
“ERCOT does not design the market or set pricing for retail consumers,” the spokesperson said.
Hirs said the existing generators cannot produce enough electricity to match the state's growing population and keep costs low.
“The fact of the matter is we don't have enough batteries, and we don't have enough nuclear, coal, and natural gas fleets to serve Texans on peak demand days,” he said.
Hirs said he believes renewable energy could ease that burden at some point, but the existing plants will not be capable of meeting demand, he said. Meanwhile, lawmakers have attempted to encourage natural gas development.
Also last fall, lawmakers passed a bill allowing transmission and distribution companies to request changes in how much they charge for electricity to recover the cost of providing it. The Public Utilities Commission would approve or deny those requests.
State Sen. Phil King, R-Weatherford, sponsored the bill, enacted in September 2023. The commission has received nine requests from companies delivering electricity to raise prices to cover distribution costs. It approved six: AEP Texas, Southwestern Electric Power Company, Oncor Electric Delivery Company and CenterPoint Energy Houston Electric — the only regulated companies in Texas' energy market — requested the increase in costs.
When families find themselves in a precarious financial position, they often wait until they are at a breaking point, said Sara Aguilar, executive director of Odessa Catholic Charities.
“People are ashamed and embarrassed to ask for help,” Aguilar said.
That's how Judy Ann Marquez felt when financial instability arrived at her doorstep. Last year in October, the 62-year-old took custody of her niece's child, whose parents were unable to do so. Marquez said she quit her job as a cashier when her employer reduced her hours. She scraped her savings while looking for another job, she said.
Her power hadn't been shut off, but it was close. The bill had soared to $500, an amount she couldn't afford. It was then that Marquez sought out the charity for help. The charity paid the bill in full. “I hate asking, but I don't have a choice,” Marquez, a lifelong Odessan, said.
Mary Ann Estrella stirs a pot of homemade dog food inside her kitchen. Estrella makes her own dog food to save money as living costs increase.
Credit:
Reilly Strand for The Texas Tribune
Aguilar said the charity provides monetary assistance for up to three months and pairs a caseworker with each person. The caseworker equips every person with financial literacy skills tailored to their hardship.
If those seeking assistance can afford part of the expense, the organization asks every person to contribute. After the three-month period expires, the person can again request assistance in 18 months.
“It just helps them be part of the solution,” she said.
Texans who cannot pay their bills can also apply to the Comprehensive Energy Assistance Program or CEAP. This program assists low-income households by covering up to eight months of the highest energy bills. To qualify, families must fall below 150% of the Federal Poverty Guidelines. A household of one, for example, must earn no more than $22,590 annually.
In Midland, Estrella is counting the days until she can buy a home. It's a sunny afternoon in mid-April, and she's out of cash until the end of the month when her benefits kick in. She would work more, she said, but has to limit her hours to avoid being disqualified from her benefits.
She's learned how to conserve energy from a local charity and is working with a loan counselor to get her finances back on track. Sometimes, she gets meals from the local food bank and spends less on groceries, she said. These are some of the programs that keep her afloat — and the lights on.
Disclosure: CenterPoint Energy, Oncor and University of Houston have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
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Texas Tribune
UT-Austin offers probation to students arrested in protests
by By Asad Jung, The Texas Tribune – 2024-07-05 17:44:44
SUMMARY: The University of Texas at Austin is disciplining students arrested during pro-Palestinian protests in April by offering “deferred suspension,” allowing students to avoid suspension by proving educational growth. Deferred suspension requires students to take an exam on university rules and avoid appealing the decision. Some students, like Ari Lenahan, see this as a relief compared to harsher penalties faced by peers at other universities. Over 130 protesters were arrested, but Travis County Attorney Delia Garza declined to pursue criminal trespassing charges. The university's heavy-handed response has sparked criticism from students, faculty, and free speech advocates.
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The University of Texas at Austin has begun disciplining students who were arrested in pro-Palestinian demonstrations in April, scolding them for their actions but offering them a path to avoid suspension.
In letters sent out to students this week, first reported by KUT, university officials said it would be appropriate to suspend them for their actions during the protests but would give them the option to take “deferred suspension” instead, a form of probation that would allow students to remain in class and keep the disciplinary action from appearing on their final transcripts.
“Recognizing our commitment to educational growth, we want to offer you an alternative path to avoid suspension by proving that you have learned from this experience,” reads one of the letters obtained by The Texas Tribune.
Students who choose deferred suspension must agree to take an exam testing their knowledge of the university's rules and agree not to appeal the decision. The status would be active until July 7, 2025.
Those who decline that option would be suspended, the letter says. Students may also appeal the disciplinary sanctions through a university hearing.
Ari Lenahan, a UT-Austin student set to graduate in December, said he was relieved the university offered him deferred suspension since students at other universities across the country are facing harsher punishments after participating in pro-Palestinian demonstrations. He said it may be the best choice for him since he aims to graduate this year.
“It's a lot clearer where I stand now, at least in the university's eyes,” he said.
Lenahan still has a hold on his account preventing him from registering for classes in the fall but said the letter he received Wednesday states any holds will be removed once his case is resolved.
Anne-Marie Jardine, a recent graduate, received a sanction letter concerning her involvement in an April 24 pro-Palestinian demonstration. Jardine was told she would be under deferred suspension for one year if she were to re-enroll at UT-Austin. Jardine said she hasn't received her official diploma from the university yet.
Many other students under investigation have not yet been informed about how the university plans to move forward with their cases. Sam Law, a PhD candidate who was arrested on April 29, said that he expects the university will contact him soon.
More than 130 protesters were arrested at pro-Palestinian demonstrations on UT-Austin's campus in late April. In resolute efforts to dispel the protesters, law enforcement at the time deployed pepper spray and flash-bang explosives and charged students with horses. State troopers were deployed by Gov. Greg Abbott to help quash the protests and had a hand in the arrests.
Those arrested were charged with criminal trespassing but Travis County Attorney Delia Garza declined to pursue those charges.
In the aftermath of the protest, many students, faculty and free speech advocates questioned UT-Austin's heavy-handed response to the protests and criticized state GOP leaders' support of the arrests. Just a few years ago, Abbott had championed state legislation that protected free speech on college campuses, leading free speech advocates to ask who gets to enjoy free speech protections in Texas.
UT-Austin leaders, meanwhile, have vowed to carry out discipline against students who violated campus policies. Seniors in the class of 2024 were afraid their diplomas would be withheld, though they were permitted to join graduation ceremonies in the spring.
Sneha Dey contributed to this story.
Disclosure: University of Texas at Austin has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
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Texas Tribune
Hurricane Beryl likely to hit Texas coast Monday
by By Emily Foxhall, Berenice Garcia and Stephen Simpson, The Texas Tribune – 2024-07-05 16:47:07
SUMMARY: Texans are being urged to prepare for Hurricane Beryl, expected to make landfall as a Category 1 or 2 storm along the Texas coast on Monday. Currently crossing Mexico's Yucatan Peninsula, Beryl could hit anywhere from northern Mexico to the mid-Texas coast. Officials stress vigilance and preparation, especially for those along the Gulf coast, and advise stocking up on essentials like food and water. Emergency measures include distributing sandbags and readying evacuation plans. Beryl, an unusually strong early-season storm, has already caused significant Caribbean damage, with forecasters predicting a highly active hurricane season exacerbated by climate change.
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Texans need to prepare for Hurricane Beryl, which is likely to make landfall on the state's coast as a Category 1 or 2 storm on Monday, state emergency officials said.
The record-setting storm was moving across Mexico's Yucatan Peninsula on Friday, leaving forecasters still unsure exactly where along the Texas coast will see the worst rainfall and wind.
As Beryl left behind a trail of destruction across Caribbean islands, state officials urged Texans along the entire Gulf coast to pay close attention and prepare for a dangerous storm, particularly people vacationing during the July 4 holiday weekend.
“Everyone along the coast should be paying attention to this storm,” Lt. Gov. Dan Patrick said at a news conference in Austin. Patrick is serving as acting governor as Gov. Greg Abbott travels in Asia on an economic development trip.
Residents should be gassing up their vehicles and making sure they have food and water for themselves and their pets, Texas Division of Emergency Management Chief Nim Kidd said.
“A lot of people are out having fun right now, and that's a good thing, and we want them to continue to do that, but we also want them to prepare,” Kidd said. “We need a prepared community, not a panicked community.”
Boarded windows at the H-E-B Plus! grocery store in Brownsville on July 5, 2024.
Credit:
Michael Gonzalez for The Texas Tribune
Officials in the Rio Grande Valley and Corpus Christi have been distributing thousands of sandbags to help people prepare for potential flooding. South Texans have been eager for rain because the two major reservoirs on the Rio Grande have reached near or record lows in June.
Forecasters on Friday expected Beryl to make landfall anywhere from northern Mexico to the mid-Texas coast. The storm appeared likely aimed for South Texas but experts warned its path could shift north to Corpus Christi or Matagorda Bay.
Tropical storm-level winds would likely arrive Sunday night, according to the National Hurricane Center. Areas from Brownsville to Corpus Christi faced the greatest wind threat under the current forecast.
Heavy rain could begin Sunday and last through Tuesday. The National Hurricane Center predicted four to eight inches to fall along the South Texas coastline, with higher amounts in some spots, and up to six inches from Corpus Christi to Matagorda Bay. Forecasters expected the storm to slow over land, which would increase the risk of flooding.
Rip currents and high seas starting late Friday will make coastal conditions dangerous.
In the Rio Grande Valley, officials were preparing for possible flooding.
The eastern part of Hidalgo County tends to be hit the hardest during heavy rains, but the county was taking steps to mitigate flooding there, said Ricardo Saldaña, Hidalgo County's emergency management coordinator. Officials have placed water pumps near flood-prone areas and worked with contractors to prevent flooding at drainage project sites by covering up excavation holes.
Saldaña warned residents to make their own preparations by stocking up on food and water, preparing an emergency kit, and making arrangements with friends and family to relocate if necessary.
Sandbags at a county facility in Brownsville on July 5, 2024.
Credit:
Michael Gonzalez for The Texas Tribune
Cameron County Judge Eddie Treviño, Jr. recommended that people in recreational vehicles leave county parks.
“If you don't feel safe, evacuate,” said Tom Hushen, Cameron County's emergency management coordinator.
If there is flooding, Hushen said they were prepared to mobilize fire trucks and ambulances to help people evacuate. But high winds could pose another threat. Winds of more than 90 miles per hour could cause those vehicles to topple over. In that scenario, county officials would have to deploy larger vehicles like dump trucks.
Hushen said any power outages would prompt the opening of emergency shelters. He also advised residents to tie down any loose items in their yards and to bring in all patio furniture because high winds could turn those objects into projectiles.
“Listen to the warnings,” Hushen advised residents. “Things could change at a moment's notice.”
Beryl has astounded meteorologists with its strength so early in the summer. Warmer-than-normal ocean temperatures helped Beryl rapidly strengthen into a Category 4 storm in late June — becoming the first recorded Category 4 storm to form in June, according to the National Oceanic and Atmospheric Administration.
Beryl strengthened into a Category 5 and tore across the Caribbean, causing devastation in Grenada and Jamaica. It pushed onto the Yucatan Peninsula early Friday as a Category 2 storm.
“Beryl is so out of place historically given how early in the season it is and how strong it got,” said Houston-based meteorologist Matt Lanza, who helps write a blog on tropical weather called The Eyewall. “Typically you don't see that sort of thing until August — not the end of June, beginning of July.”
Federal forecasters expect this hurricane season, which began June 1, to be a bad one. They predicted to see 17 to 25 named storms form, which was more than they had ever forecast before a season's start. They believed four to seven of those would be Category 3 storms or stronger.
Climate change driven by people burning fossil fuels is causing oceans to warm and makes hurricanes more likely to be stronger. Scientists also say climate change may make rapid intensification of storms more likely — as happened with Beryl.
“To look at a satellite on June the 30th or July the 1st and to see a storm of Beryl's magnitude is almost unbelievable,” said Michael Lowry, a hurricane expert for WPLG TV in Miami.
Reporting in the Rio Grande Valley is supported in part by the Methodist Healthcare Ministries of South Texas, Inc.
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Texas Tribune
Michael McCaul seeks waiver to stay Foreign Affairs chair
by By Isaac Yu, The Texas Tribune – 2024-07-05 05:00:00
SUMMARY: U.S. Rep. Michael McCaul seeks a waiver to extend his chairmanship of the House Foreign Affairs Committee. During his term, McCaul, a Republican from Austin, led efforts to ban TikTok, supported Tibetan self-determination, and condemned the Chinese spy balloon. He also played a crucial role in passing a bipartisan Ukraine aid bill and has been active on global issues, including Ukraine and Taiwan. McCaul aims to maintain U.S. strength abroad amid growing isolationism in his party. Facing a six-year term limit, he needs special permission to continue, with several colleagues aiming for his position. His leadership's fate will be decided by the Republican Steering Committee.
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WASHINGTON — U.S. Rep. Michael McCaul isn't quite ready to give up his gavel.
In his two years as chair of the powerful House Foreign Affairs Committee, the Austin Republican has been busy; he spearheaded the charge to ban TikTok, authored one resolution on Tibetan self-determination and led another condemning the infamous Chinese spy balloon. Just last month, he helped shoulder a bipartisan Ukraine aid bill through Congress over many colleagues' loud objections. He's also traveled the globe, shaking hands with Volodymyr Zelenskyy in Ukraine, receiving a blessing from the Dalai Lama in India, and gifting Taiwan President Lai Ching Te with a cowboy hat.
To keep his leadership post on one of the most coveted committees in Washington, he'll need special permission, having hit his six-year term limit. Several colleagues are already gunning to replace him.
McCaul confirmed last week that he would indeed seek a waiver to serve another term as top Republican on his committee, which would need approval from a steering committee and then the full House Republican caucus.
“It's not time to change horses right now,” McCaul said in an interview. “It's a dangerous time where the world is on fire.”
If his quest is successful, McCaul pledges to keep supporting key allies around the globe and stay aggressive on adversaries like Russia and China. If not, defense hawks in Washington could lose a powerful voice in charge just as the GOP prepares to redefine its approach to foreign policy under a potential second Trump administration.
Closing out his twentieth year in Congress, McCaul is well-connected and one of the most experienced members of the Texas delegation, having chaired the Homeland Security Committee from 2013 to 2019. The Foreign Affairs Committee under his leadership has been the most productive House committee this term, his office said, with 67 measures and 18 bills passed by the full chamber.
McCaul is making the case that his relationships on the Hill — including a friendship with Speaker Mike Johnson that helped push Ukraine aid over the finish line — justify him staying on an extra term.
Johnson had voted against sending aid to Ukraine before becoming speaker, part of a growing wing of conservatives who believed foreign aid came at the expense of funding for border security. McCaul, a steadfast supporter of Ukraine, helped sway Johnson's thinking and the speaker ultimately threw his support behind a package to send $60 billion in aid to boost Ukraine's arsenal against Russia.
The decision was opposed by a majority of Republicans and drew the ire of hardline conservatives, including Rep. Marjorie Taylor Green of Georgia, who filed a motion to vacate the speaker, which failed.
“I think I feel compelled to do it not for myself, but I don't think anyone would be able to do what I do or shepherd the [Ukraine] supplemental the way I was able to,” McCaul said.
McCaul has also been a leading China antagonist this term, leading an effort to force the sale of TikTok to an American company. His visits with Taiwanese leaders and the Dalai Lama, who China views as a separatist threat, have drawn strong condemnation and sanctions from Beijing.
His efforts on Ukraine, Taiwan and elsewhere are linked by a desire to project U.S. strength abroad, even as the isolationist wing of his party grows.
“If we abandoned Ukraine and allowed [Vladimir] Putin to take over Ukraine and threaten Eastern Europe, that would be a big mistake, and it would send a message to Chairman Xi [Jinping] that Taiwan's fair game,” McCaul said.
House Republicans set six-year term limits for committee chairs, including years spent as ranking member when the party is the minority. The GOP last voted to keep the term limits at the beginning of the current term.
Waivers are rare. Only one was granted last session, to Rep. Virginia Foxx, R-North Carolina, who stayed an extra term chairing the House Education and Workforce Committee. Before Foxx, the last waiver was granted in 2012, to former Speaker Paul Ryan, R-Wisconsin.
McCaul's fight comes as Texan influence in the House is on the decline. The state delegation, which includes more Republicans than any other state, will see the retirements of Rep. Kay Granger, R-Fort Worth, who stepped down from her powerful perch as Appropriations chair, and Rep. Michael Burgess, R-Denton, who will give up the Rules Committee gavel less than a year after gaining it.
Rep. Jodey Arrington, R-Lubbock, will remain the top Republican on the Budget Committee. And Rep. Brian Babin, R-Woodville, is currently the only Republican running for the top spot on the Science, Space and Technology Committee.
Committee assignments are determined by the Republican Steering Committee, made up of party leadership and regional representatives, and then approved by the full conference. The 36-member Steering Committee, which always includes at least two Texans, has been stingy with waivers in the past, even when considering chairs like McCaul who have spent most of their time in the minority.
The decision could depend in part on how McCaul's committee feels about his leadership. Foxx had the support of every Republican on her committee in seeking a waiver, including from the next-highest ranking Republican who would have replaced her.
None of McCaul's 26 Republican colleagues on Foreign Affairs have made endorsements yet, but at least three members — Ann Wagner of Missouri, the committee's vice chair, Darrell Issa of California and Joe Wilson of South Carolina — have already confirmed they are running against McCaul for the top spot. The committee includes three fellow Texans: Reps. Nathaniel Moran of Tyler, Keith Self of McKinney and Ronny Jackson of Amarillo, none of whom responded to requests for comment.
It's not immediately clear whether any of McCaul's announced rivals would diverge greatly from his policy positions, and all three supported foreign aid packages for Ukraine, Israel and Taiwan earlier this year.
Matthew Choi contributed to this report.
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