In the aftermath of the recent devastating storms that left seven people dead and nearly a million without power, Texas is once again facing the potential for a major energy crisis. With record high temperatures on the horizon, the isolation of the Texas power grid and its vulnerabilities have come under renewed scrutiny.

The Texas power grid, managed by the Energy Reliability Council of Texas (ERCOT), has long been a symbol of the state's resistance to federal oversight. The grid's isolation began back in 1935 as energy companies sought to avoid federal regulation and maintain their monopolies, an isolation enabled by the state's size and abundance of natural resources.

However, this isolation has proven to be a double-edged sword. In February 2021, Winter Storm Uri exposed the flaws of ERCOT's system when a perfect storm of disastrous conditions led to power outages affecting over 4.5 million homes. The extreme cold caused energy demands to spike while natural gas production and power plants faltered. ERCOT struggled to meet the unprecedented demand, resulting in widespread power loss and tragic consequences with at least 200 deaths attributed to storm-related conditions.

The lack of connections to other power-sharing networks, such as the Eastern Interconnection and the Western Interconnection, left Texas without sufficient safeguards and backup energy sources during the crisis. Cities like El Paso, which are part of the Western Interconnection, fared better than Houston and Dallas.

Beyond weather-related events, the isolation of the Texas grid has created persistent problems for consumers. Wholesale electricity prices have soared, with spot prices trading at $175 per megawatt-hour (MWh) in August, a significant increase from the previous year. In comparison, California's spot electricity prices for August are trading at $80 per MWh, indicating a stark contrast in cost burdens.

While efforts have been made to address these issues, including investments in battery construction and renewable energy, the need for Texas to interconnect its grid with neighboring power networks remains paramount. U.S. Representative Greg Casar (D-Austin) recently introduced the "Connect the Grid Act," which would require ERCOT to become interconnected and subject to FERC oversight. However, significant opposition from Republicans raises doubts about the bill's chances of passing.

As Texas faces another potential energy crisis this summer, the urgency to address its isolated power grid becomes increasingly apparent. The state's decades-long isolation has led to skyrocketing costs for consumers and deadly failures, putting the health and safety of Texas residents at risk. It is imperative that Texas takes steps to integrate its power grid with the rest of North America to ensure reliable and affordable electricity for its growing energy needs.