Thread by @MoseBuchele

At the Houstonian Hotel and Club, Tuesday, Lt. Governor Patrick and BlackRock's Larry Fink tried to sell investors on building new Texas gas power plants. Patrick joked that it felt like a "time share presentation." It was an interesting scene.. 1/
kut.org/energy-environ…

The dynamic between Fink and Patrick is a story in its own right. Patrick helped push a boycott of Fink's company, pulling Texas pension money from the investment firm because BlackRock touted renewable energy investments. Patrick says, after that, the two started talking.. 2/

They both want something from each other. Fink, presumably, wants those billions in pension funds re-invested with his firm. Patrick wants Fink's help to find backers for these new gas power plants... And why do we want new power plants? 3/

Patrick is among those who say the state grid needs "dispatchable" gas plants to improve reliability. The idea is also backed by the Texas oil and gas industry, an industry Patrick enthusiastically supports (that's why he didn't like BlackRock's green investing). 4/

So now, at Patrick's suggestion, he and Fink are -more or less- co-hosting this Grid Summit. In opening remarks (the only part that reporters were allowed to be there for) they touted $10 billion in public subsidies to build new power plants. But there could be a problem... 5/

Even with the incentives, some say investors wont bite. If they were interested "they wouldn’t have had this summit; there would already be power plants being built," says @edhirs “All of these guys are sharks. There not going to miss an opportunity to make a profit.” 6/

The problem, Hirs says, is that there's no guaranteed (or even steady) rate of return on power plant investments in Texas. To do that, he says, the state would have to do something like re-regulate its energy market. Fink may have even obliquely pointed to this in remarks... 7/

Fink said: "I think we could find a solution working with government here in Texas, finding private solutions where [...] retirees can put their retirement money into an infrastructure project and earn a consistent return on (their) investible assets." 8/

After the speeches, Lt. Governor Patrick said he was optimistic that the subsidies will work. But he also said this: “If we can’t get an incentive program to attract investors to build, then the state will have to build [the power plants] ourselves." What? 9/

I asked him if he meant to re-regulate the grid. He said his state-built power plant plan was "the last card" he could play. He acknowledged that many would say it was a re-regulation, but building new power plants was just that important to him. 10/

Of course similar plans have been proposed before, and not gained enough support. The Lt. Governor can expect opposition not just from energy companies, but from environmental advocates who say the entire premise (that we need more gas plants) is dangerously flawed. 11/

They say that gains in renewables, energy efficiency, battery storage etc will help the grid without the cost and pollution of gas plants. They want more investment in green energy. Wait, that's what got BlackRock in trouble in Texas to start with! And what about BlackRock? 12/

The Lt. Gov would not say whether he now supports removing BlackRock from Texas's "blacklist" of investment firms with which it does not do business.
Who knows? Maybe it depends on whether the "Texas Power Grid Investment Summit" bears fruit. 13/13
kut.org/energy-environ…