Why Texas Is the Only State with Its Own Grid

Image: Houstonia Composite
We all know Texas is different. What makes the Lone Star State unique reverberates in every aspect of its identity, including its energy infrastructure: This is the only state in the country with its own electricity grid. While most of the US is interconnected through grids overseen by the federal government, Texas has opted for independence, creating a system that reflects our culture of self-sufficiency…but at what cost?
The origins of an independent grid date back to the 1930s. During the New Deal era, the federal government began regulating interstate power sales under the Federal Power Act. In response, local electric companies and politicians began developing an electrical infrastructure that would allow Texas to be self-reliant, culminating in the formation of the Electric Reliability Council of Texas (ERCOT) in 1970, which governs the state’s electric grid and operates largely outside federal regulations.
The desire for autonomy came to a head in 1976, in an event famously known as the Midnight Connection. In a secret move, West Texas Utilities in Vernon, Texas, sent energy to Central and South West Corporation in Atlus, Oklahoma, breaking a previous agreement between Texas power companies to keep electricity within the state. The goal was to benefit both companies’ shared parent company but it triggered a legal battle that ultimately swung in favor of grid isolation. The incident solidified Texas’s status as a power island and the state has maintained its independent grid ever since.
While this independence has provided Texas with a degree of control over its energy infrastructure, it has also created challenges. One of the most significant drawbacks is the limited ability to import power from neighboring states during times of grid strain. This was particularly evident during the 2021 Winter Storm Uri, when the grid was overwhelmed by unprecedented demand and forced to implement rolling blackouts.
The fallout from that storm was nothing short of catastrophic. Millions of Texans were left without power for days in frigid weather, with many homes dropping to dangerously low temperatures. Families huddled together in blankets, desperate for warmth, while local leaders faced intense scrutiny over their inability to keep the lights on. Nearly 250 people died. In the aftermath, the state pledged to enhance grid reliability and invest in infrastructure improvements, but many still feel the separation from the rest of the country does more harm than good.
In 2023, an intense summer tested the grid’s mettle once again. Record-breaking temperatures sweltered across the state, and as demand surged, ERCOT found itself on the edge, barely able to keep up. The agency issued several warnings about potential outages, asking residents to conserve energy when possible.
More recently, Hurricane Beryl added another layer of stress to an already strained grid. ERCOT had implemented measures in the wake of past failures, but they were no match against the storm’s downed trees and debris that plunged millions into darkness for weeks as CenterPoint moved at a glacial pace to restore power.
Despite these challenges, state officials are not keen to change the current status quo. Instead of integrating the grid, they are considering measures such as the expansion of renewable energy options. Using wind and solar power sources can help reduce the strain on the grid and provide cleaner energy, which is becoming increasingly important in an age where climate change and sustainability are at the forefront of public concern.
Texas produces more renewable energy than any other state in the country, but completely transitioning the grid faces significant political and logistical hurdles. Until then, Texans might just keep dealing with an unstable grid during natural disasters.