ABSTRACT
Texas is one of the most rapidly growing states in the country. Its population is expected to increase 1.7 percent annually over the next 15 years. Economic activity, on the other hand, is expected to grow 3.2 percent per year over that same period. With this combined population and income growth, electricity consumption is similarly projected to grow an estimated 1.7 percent annually.1 At the same time, however, the state is facing tight reserve margins for electric generation capacity. This means that Texas may not have sufficient power plants online to meet this new growth. Moreover, Texas has one of the most natural gas-dependent electric generation sectors within the United States. This lack of resource diversity exposes the state to rising and volatile natural gas prices in addition to the many vulnerabilities associated growing constraints on its generation capacity. Hence, there is a clear need for new energy resources to meet the expected growth in electricity demand.
