SAN ANTONIO — The Texas Railroad Commission Tuesday set first-of-their-kind weatherization rules for natural gas suppliers, most responsible for the power grid's failure in Feb. 2021.
Under the guidance, natural gas facilities will have to prepare for extreme weather by Dec. 1.
"This rule is about preparation. It's about planning for the unknown," said Jim Wright, one of the state's two railroad commissioners.
Natural gas-fueled plants generate about one-third of Texas's electricity.
The new rules do not outline specific goals for weatherization or create a uniform standard suppliers must meet. Instead, state inspectors will decide on a case-by-case basis whether facilities are adequately prepared.
"I expect to see full compliance with these rules by 2023," said Ed Hirs, energy fellow at the University of Houston. "Of course, we won't know until we have a weather event. With any luck at all, this is going to get us through that."
Companies that do not pass inspection may be fined up to $1 million, though watchdogs worry stiff penalties will be rare.
"Repeat and deliberate attempts to avoid compliance... will not be taken lightly by the commission," Wright said. "It will result in referral to the attorney general."
It's not clear what penalty the attorney general could levy against a non-compliant company.
"We're going to have to see how the Railroad Commission decides to enforce the rule," Hirs said. "That's 12-18 months down the road."
The Texas Railroad Commission is comprised of three elected members who've all taken campaign donations from the corporations they're charged with regulating.
The legislature required power generators to weatherize equipment last year. Lawmakers held electricity producers to a higher standard than they did natural gas suppliers.
Tuesday's decision represents a final step toward correcting problems which led to rolling blackouts during Winter Storm Uri.