Testimony in support oh HB 4984 (Anchia) to improve gas industry transparency

Good afternoon, and thanks for the opportunity to speak. My name is Shelley Livaudais and I’m the communications manager for TexPIRG, an advocate for the public interest. We speak out for a healthier, safer world in which we’re freer to pursue our own individual well being and the common good. Today I’d like to speak about the need for increased transparency in the Texas natural gas industry and in support of House Bill 4984, filed by Representative Anchia.

The power grid failure and blackouts during 2021’s winter storm Uri were a calamity on many levels. According to FERC, the Federal Energy Regulatory Commission, much of the natural gas supply problem was due to lack of weatherization. Power plants didn’t have the natural gas supply they needed to operate, resulting in catastrophic shortages of gas available to power plants as demand surged. Even as millions of Texans were left in the cold, many of them medically and economically vulnerable, Texas gas was exported out of state and internationally. Gas prices soared, with some companies crowing about “hitting the jackpot.”

Hundreds of Texans died. On a personal level, our household was without electricity for nearly five days. I have a severe pulmonary condition and require oxygen and bipap ventilation at night, so those five days were extremely difficult. I made it through, but many didn’t.

And to make matters worse, the debts racked up by power companies paying for skyrocketing gas prices during the crisis added up to more than $3 billion dollars, a cost that will impact Texas gas consumers for years to come. It has become clear that broad reform and increased transparency is needed.

We are encouraged by several bills put forward by legislators from both sides of the aisle, in both chambers, including HB 4984, to protect Texans from future disasters.

Currently gas providers are under contractual obligations to provide a certain amount of product to power companies. They are exempted from these obligations under certain conditions – such as a weather emergency – but are not required to report to regulating agencies when this happens. This lack of reporting means that the Railroad Commission does not have data on the frequency or location of force majeure events.

HB 4984 would require natural gas supply chain operators to confidentially report these adverse events to the Railroad Commission within 60 days of the event occurring. This information could be used to develop policies and regulations that help to mitigate these risks and ensure the continued reliability of the natural gas supply. The reports would also be valuable for research and planning purposes. By understanding the frequency, location, and severity of force majeure events, the Commission and other stakeholders could better prepare for and respond to these events.

Overall, HB 4984 would be a positive step towards increasing transparency and improving oversight of the natural gas supply chain in Texas.