DEI of TX Power Supply Resources, prevents 1,250% increase in TX electricity prices, driven by AI Data Center Demand

Topic Commentary

The State of Texas AI data Center electric demand is expected to explode by just over 500% or 475 GW over just the next six years.  Texas AI data center electric demand growth is the largest of all states in America.  Over the past 10 - 20 years, Texas electric demand growth was very slow increasing at a paltry 1% per year, with electricity prices rising just 2.5% per year over that same period.  So if electricity prices have been growing at 2.5% a year, when electric demand in Texas was growing at a very slow rate of 1% per year,  what do you think is going to happen to electricity prices over the next six year, when electric demand growth is expected to increase by 500%  or an average annual electric demand  growth rate of 83% each year?  If the historical relationship between electric demand growth in Texas and electricity prices, remains the same over the next six years, Texas electricity prices could rise by 1,250% over the next six years.   So as an example,  under the just previously stated conditions, if your average annual monthly electricity bill is say $150 per month in 2026, then by 2032, six years from now, when electric demand in Texas has increased by 500%,  your monthly average annual electricity bill would soar to $1874/month from $150/month in 2026.

That seems impossible right, that level of energy price growth would be an economic and financial catastrophe, for Texas and all other states with large AI data center build outs.   Has America ever experienced anything that has ever even come close to This?   Yes, absolutely it has.  In the early 1950s, oil industry geologist and economist warned the energy industry and America that, oil production in America would peak in 20 years or by 1970, and go into permanent decline for 40 years, if America does not find new sources of oil in its domestic economy or find new and abundant forms of energy to replace oil in the US economy by 1970.  During the 1950 - 1970 era, about 97% of the US economy was running on oil.  If oil production were to peak in 1970 and America was caught naked with no real alternatives to oil to run the largest economy in the world, the impact on the US economy would be catastrophic and permanent, sending oil prices to the moon and destroying the economic back bone of the US economy.

Well just like we have energy and business interest today, who deny and do not want to make investments necessary to protect current and future generations from the worst effects of climate change in the next 10 - 20 years, the US conservative energy and business interests of the 1950s did not head the risks and warnings from their own industry scientist back in 1950,  and by 1970, US oil production actually did peak and went into permanent decline over the next 40 years.  As predicted, America was caught short or naked for the first time in its history, of the most important input to the world's most powerful and wealthy economy , US domestic oil supplies.  Because of this totally preventable catastrophe, that was allowed to happened by the US energy industry and its business and investor community, between 1970 and 1980 oil prices increased by 1,900%, causing the great inflation of the 1970s and the Financialization of the US economy, in the 1980s, which is the primary source and driver of America's affordability crisis which continues to plague America to this very day.

The Moral to this story, is that the great inflation of the 1970s and the financialization of the US economy in the early 1980s were all preventable.  The conditions driving these economic catastrophes were all identified and made public to government and business interest who could have lead an effort, to innovate new ways to find additional oil domestically in America and/or create alternative and abundant alternative supplies of energy to power the US economy in the event, US oil production actually did peak in 1970 as predicted by energy industry experts 20 years before.  

Unfortunately, here is the real question, which examines the morality, the heart and the soul of America's most wealthy, most powerful and most well connected in America and around the world.   The Question is!!!! So why didn't the US oil industry and government officials, prepare and lead America into making the investments between 1950 and 1970, necessary to prevent America from being caught short with insufficient energy supplies to efficiently and productively run the world's largest, wealthiest and most powerful economy on the planet?    Here is a clue!!  During the Great Inflation of the 1970s, what company was the most profitable company in America, during that decade long, Great Inflation and  economic catastrophe taking place in America!!  It was Exxon Oil Company!!!!!!   Let's see, EXXON Oil company and the entire oil and energy industry understood very well what would happen to the US economy and oil prices if US oil production peaked in 1970 and then went into permanent decline for the next forty years.  I think the oil industry would smugly ask America this question!!!  Why would the oil industry fix a problem that would block the oil industry from locking in sustained super profitable operating conditions for a guaranteed 10 - 15 year period.  This was the economic moral hazard of all moral hazards, because the oil industry knew and could for see, the massive and sustained profit opportunity for itself by simply taking the easiest path of least resistance, doing nothing to promote or protect the US  economy against a risk from the US oil industry, which they knew better than anyone else in the world, because it was their intension and desire to benefit massively from America being structurally short of oil, if oil production actually peaked in 1970 as their own industry experts, practically guaranteed would happen.  The heart and soul of the wealthiest and most powerful people on the planet have been selfish, corrupt and willing to destroy the economic back bone of the US economy and the economic livelihood of the American people, permanently for their own massively crazy financial gain and the expense and destruction of the masses of American people.   Crony Capitalism at its worst.

Of course the US oil industry did not communicate  this strategy openly in their annual reports or during  investor road shows, but their lack of advocacy for or action to prevent the peak oil tragedy from occurring in America, after being warned publicly by their own best scientist, for 20 years earlier, again demonstrates the corruptness of the oil industry, advocating for Americans to stay patriotically asleep, un-woke, not asking questions, so that the oil industry can exploit and rob working class Americans, while it smiles in their face and say don’t worry, stay un-woke, sleep go to church be good Christians and everything is going to be alright.  Yes it is exactly this type of behavior that allows the oil and very wealth conservative decision makers in the economy, to be able to exploit us with the absolute least amount of effort, at our own catastrophic expense.

Today's AI Data Center Affordability Challenge is setting up for another massive and catastrophic moral economic hazard that is preventable if electric utilities, power producers and electric utility industry regulators step up and do the smart, hard, innovative DEI focused strategy and planning processes available to the electric utility industry today, to meet AI Massive Data Center Demand growth in Texas while limiting electricity price growth to 25%, instead of 1,250% electricity price growth that will occur if the status quo electric utility planning process is maintained over the next six years. Unfortunately, the most likely result is if Texas Electric Utility Industry and Regulators, take the lazy and easiest path of least resistance, which maximizes profits and returns for electric utilities, their equipment suppliers and AI data center owners, all at the expense of and on the backs of TX electricity consumers, will result in a 1,250% increase in the price of electricity for Texas consumers.   I call this Crony Capitalism Waste Fraud and Abuse on Texas electricity consumers, because there is an alternative process for meeting AI Data Center Demand in the Electric Utility industry, that is a super Win - Win for all stakeholders to the AI Data Center Affordability Issue.  This is exactly why many conservative interests in the US economy, want the public to STAY SLEEP OR REMAIN UNWOKE, so that they can continue to take the easiest and exploitive path of least resistance, that maximizes wealth for the wealthiest 10% - 20%, but at the expense and destruction of everyone else.

The much more economic, value added and synergistic approach to meeting this once in a century quantum leap in Electricity Demand in Texas is to innovatively DEI the electric power resources being used to meet AI data center electric demand.   This would involve strategically inviting Texas electric customers to become electric power resource generators from their homes, commercial and or industrial facilities/plants.  AI would be used in conjunction with electric power simulation tools for the entire state of TX to select 1M to 10M customers across the entire state of Texas whose power supplies when connected to ERCOT or Texas Electric Utility Grid would defer or eliminate the need for up to $700B worth of electric power grid and power generation supply facilities.  Just like the power of the diversity of our population in America keeps insurance costs low, protects our investments and retirement savings from massive losses and allows our money supply system to work through fractionation, the electric utility industry and use the power of DEI to lower and significantly contain costs for Texas consumers, while still meeting the once in a Century Quantum leap in electricity demand caused by AI data center explosive growth.   

The technology, organization and knowhow for accomplishing this innovation in electric utility planning is available and ready to be used, with tremendous economic savings for both Texas consumers and businesses, but the electric utility industry is bought into the status quo and is financially incentivized to keep the status quo in place, because the status quo, massively enriches investor owned electric utilities and their equipment suppliers, at the catastrophic expense of a  1,250% increase in electric rates for Texas, electricity consumers, which is massive Waste, Fraud and Abuse or Crony Capitalism by the Electric Utility Industry , because there is a clear alternative to DEI Texas electric consumers into power plant suppliers, limiting electric rate increases over the next six years to 25% instead of 1,250% if the status quo is allowed to persist over the next six years.  The 1M to 10MM Texas electric consumers who actually become power producers will see their electricity prices reduced by 10% to 40% from current price levels.

Governor Abbott and the Texan Republican party lavishly incentivized the largest number and size of data centers to come and operate in Texas, than any other state in America.  Now that the public and citizens in Texas and across America are waking up to the existential threat posed by AI  data centers to consumer affordability, health, safety and the environment risks, Government Officials like Texas Governor Gregg Abbott, who led the effort to bring the nation's largest number and size of AI data centers, to Texas, is now coming home to roost.  Wreckless cowboy public policy designed to hurry up and make the wealthy massively more wealthy on the backs of everyday working people is again a Tragic and Heinus Waste Fraud and Abuse on the American People.  Gregg Abbott and the Texas republican party have got caught red handed with their hands in the Cookie Jar on track to cause and primary drivers of Texas consumer electricity prices to sustainably surge by 1,250% over the next six years, if they can sneak and keep the public sleep by focusing on property taxes, boys in girls' sports and saving white children from having to learn about slavery.  Over the last 18 months, we have seen what Wreckless, Hurry UP Getter Done Cowboy Economic and Government Policy has brought us.

Fortunately we still live in America, where the vast majority of the people believe that we can work together to have a more perfect union for all Americans and not just the wealthy and advantaged few, who are moving heaven and earth to maintain and grow their wealth, advantage and power at the expense and "INTENTIONAL" destruction of the bottom 80%, and are happy, tickled , lustfully, and arrogantly proud/entitled forcefully taking and keeping their unfair, abusive and anti-American advantage over the masses of the American people.   If the Governor and his party are serious about protecting all Texans from a 1,250% massive increase in electricity prices over the next six years, he has plenty of time to call a special legislative session of congress between September and December of this year, while we have plenty of time to consider and draft legislation that is comprehensive, effective and uses this opportunity to turn the AI data center catastrophic challenge into a massive economic opportunity for every day consumers, small businesses and even large companies to share in the economically affordable Win - Win for consumers, business and the environment, creating a template and road map for all the states in the Union to follow, who are similarly dealing with AI Data Center Massive Expansion.   

Strategic DEI of 1M - 10M, Texas electric consumers, incentivized to become power producers, integrated and synergistically organized and aggregated across the entire ERCOT NERC region, to maximally defer and/or eliminate the maximum amount of capital expenditures associated with T&D and generating resources that will no longer be needed over the next six years, because of Texas, strategically identified and harnessed to be power producers for the ERCOT Power System, saving consumers and businesses over $700B in capital expenditures over the next six years.   This innovative, integrated strategic planning process coordinated ERCOT wide not only massively reduces costs, but at the same time massively improves the reliability and resilience of the Texas electric power system, because now our power supplies are diversified optimally and strategically in an optimum way across the entire state of Texas.  This DEI Electric Utility Planning Process, puts the power, control, rewards and risks, right where they need to be, in the hands of the people, for the people and by the people of the state of Texas.

What do you say Governor Abbott and Texas Republican Party?  You started this by inviting these data centers to Texas at a rate faster than any other state in America.  Please join with us and finish this in a way that radically reduces costs for Texas electric consumers by harnessing DEI to empower 1M - 10M Texas Electric Customers to become Distributed Energy Resources or Power Plants  for the Texas Electric Power System.  This is not political gamesmanship, handouts, exploitation, Waste, Fraud or Abuse.   This is quantifiable, economics 101, creating savings and value for all stakeholders in the Texas economy, that will serve as the biggest economic win - win, for the citizens of Texas in the history of the state.  

America is actually hungry, starving thirsty for a win - win economic and collaborative process like this which demonstrates that the ideas of America is not dead.  We really can grow, be strong, thrive and do well as a nation, both individually and collectively in a way where we do better, we feel better and we are oh so much better, when our goals and values are aligned in a way that we value our differences as treasures and goldmines for capitalizing on opportunities and solving problems that makes us oh so much more better individually and simultaneously oh so much better collectively as a united whole.   Our love, passion and meaning for life itself absolutely depends on anchoring the success of the individual with the success of our collective whole…….Dat's America…………Dat's how we Do!!!!!!   We are our brother Keeper!!!!!!!

What say you Governor……..we have an opportunity to demonstrate to ourselves and demonstrate and be an example for the rest of America that the Idea of America as prescribed in the preamble to the constitution of the United State of America is not a fairy tale, are not just nice pious philosophical terms, plastered onto a document as window dressing,  but that in no way reflect the reality, values and beliefs of the American people as demonstrated by our history, our current actions and our plans for the future.   What say your Governor, which course should we take……………… DEI to the Rescue Biaby……

Ø What say you Abbott??

Ø What say you Hinojosa

Ø What say you Talarico??

Ø What say you Paxton??