Does Texas get electricity from Canada?

No. Texas is not connected to Canada. Canadian power flows into the Eastern grid; ERCOT is separate from that grid except for the small DC ties noted above, and those connect to neighboring U.S. regions and Mexico, not Canada.

Did Texas fix the grid after the 2021 blackout?

It is meaningfully stronger, but "fixed" is too strong. After Winter Storm Uri in February 2021 — which pushed the grid to the edge of total collapse, left millions without power, and was blamed for hundreds of deaths — Texas mandated winterization of power plants and critical gas facilities, added a firm-fuel program and backup generation, and brought on thousands of megawatts of new solar, wind, and battery storage (batteries were essentially absent in 2021). The Texas Energy Fund is also loaning billions to build new dispatchable gas plants. The grid held through the 2026 winter storms, but experts still call it strengthened-yet-vulnerable, and surging demand is a new stress.

Is the Texas power grid reliable in 2026?

More reliable than in 2021, and it weathered the 2026 winter storms without the 2021-style crisis, thanks to mandatory weatherization, a large build-out of batteries and solar, and new gas generation. But reliability is relative: rapid demand growth — led by data centers — is now the central challenge, and a severe, prolonged cold snap remains the scenario that worries grid planners most.

Who controls the Texas power grid?

ERCOT, a nonprofit grid operator, runs the physical grid — balancing supply and demand and running the wholesale market — under the oversight of the Public Utility Commission of Texas and the Texas Legislature. ERCOT does not own the power plants or wires; those are owned by a mix of private companies, municipal utilities, and electric cooperatives. Because the grid stays within Texas, federal FERC jurisdiction is minimal.

Should Texas join the national power grid?

It is an ongoing debate with real trade-offs. Fuller connections to the national grids would give Texas more ability to import power during emergencies — a clear reliability benefit exposed in 2021. The counterargument is that deeper interstate ties would likely bring the grid under federal FERC regulation, which Texas has long avoided, and that large new transmission is expensive. For now the state is pursuing limited emergency-import projects (like Southern Spirit) rather than full integration.

The Texas Power Grid Explained

Q: Why does Texas have its own power grid?

To stay out of federal regulation. In the mid-20th century, Texas utilities deliberately kept generation and transmission within state lines so the grid would not cross state borders and trigger oversight by the Federal Energy Regulatory Commission (FERC). As a result, ERCOT — the grid covering about 90% of Texas load — is regulated by the state's own Public Utility Commission (PUCT), not the federal government. Texas is one of three main power grids in the lower 48 states, alongside the Eastern and Western Interconnections.

Q: Can Texas import electricity from other states?

Only a little. Because the grid is deliberately islanded, Texas connects to its neighbors through just a few small direct-current (DC) ties — roughly 1,220 MW combined to the Eastern and Western grids plus ties to Mexico, under 2% of peak demand. That is far too little to serve as real backup in a major emergency. A new HVDC line, Southern Spirit Transmission, is under construction and would add about 2,000 MW of emergency import capability by around 2029.

Q: Is the Texas power grid a monopoly?

Partly, and the distinction matters. The wires — the transmission and distribution poles and lines run by your TDU (Oncor, CenterPoint, AEP Texas, TNMP) — are a regulated monopoly: one utility per area, with rates set by the PUCT. But the part you shop for, the retail energy plan, is competitive, with dozens of providers. So delivery is a monopoly you cannot shop; energy is a market you can.

Q: How old is the Texas power grid?

The interconnected Texas grid traces back to World War II, when utilities linked up to share power for the war effort. ERCOT itself was formed in 1970 to manage grid reliability after a major Northeast blackout, and it became the grid operator for the competitive retail market when Texas deregulated in the early 2000s.

By the TexasPowerCost Editorial Team — independent Texas electricity analysis · Last reviewed October 18, 2026 · how we analyze plans

Last updated: August 11, 2026 · 8 min read

The short answer

Texas runs its own power grid — ERCOT, covering about 90% of the state — kept separate from the two national grids so it stays under Texas rules instead of federal ones. The catch: that independence means Texas can import very little power in a crisis, the flaw exposed by the 2021 blackout. Since then, mandatory winterization, thousands of megawatts of new solar, wind, and batteries, and the Texas Energy Fund's new gas plants have made it sturdier — it held through the 2026 winter storms — but the surge in data-center demand is the next big test.

Why does Texas have its own power grid?

It's a deliberate choice about regulation, not geography. In the mid-20th century, Texas utilities kept their generation and transmission inside state lines so the grid wouldn't cross a border and fall under federal oversight (the Federal Power Act and later FERC). By staying self-contained, Texas keeps authority over its own grid through the Public Utility Commission of Texas and the Legislature. The operator is ERCOT, and it's one of just three main grids in the lower 48 — the Eastern Interconnection, the Western Interconnection, and Texas. (For how this connects to the *retail* market you shop in, see how the Texas electricity market works.)

Can Texas import electricity from other states?

Barely — and that's by design. Because the grid is islanded, Texas connects to its neighbors only through a few small direct-current (DC) ties, about 1,220 MW combined to the Eastern and Western grids plus links to Mexico. That's under 2% of peak demand — nowhere near enough to be a real safety net in a statewide emergency. (And no, Texas doesn't get power from Canada — that flows into the Eastern grid, which Texas is separate from.) A new HVDC line, Southern Spirit Transmission, is under construction and would add roughly 2,000 MW of emergency import capacity around 2029 — a modest but meaningful hedge.

~90%

of Texas electricity load runs on the ERCOT grid

~1,220 MW

total import capacity via DC ties — under 2% of peak demand

~$10 billion

Texas Energy Fund, voter-approved to build new dispatchable generation

What happened in 2021 — and did they fix it?

In February 2021, Winter Storm Uri froze gas wellheads and power plants at the same time demand spiked. ERCOT came minutes from an uncontrolled, monthslong collapse, cut power to millions, and the disaster was blamed for hundreds of deaths. The response was substantial: Texas now legally requires power plants and critical gas facilities to winterize, added a firm-fuel program and on-site backup generation, and has brought on a large wave of new solar, wind, and — importantly — grid-scale battery storage, which barely existed in 2021 and now helps cover peak hours. The Texas Energy Fund is loaning billions more to build dispatchable natural-gas plants inside ERCOT.

So the grid is genuinely stronger — but "fixed" overstates it. Officials and analysts describe it as strengthened yet still vulnerable, and the honest risk remains a severe, prolonged cold snap that hits gas supply and demand together.

Is it reliable now?

More reliable than in 2021, and it weathered the 2026 winter storms without a crisis. The new batteries, solar, and weatherization did their job. But reliability is always relative to demand — and demand is now climbing faster than any time in the grid's history, driven largely by data centers. That's why the reliability conversation has shifted from "can we survive the next Uri" to "can we build enough, fast enough, to keep up." Which brings the story back to your bill.

What the grid has to do with your bill

Grid reliability isn't free — winterization, new plants, and transmission all get recovered through the regulated delivery (TDU) charge on everyone's bill. You can't shop that part. What you can control is your energy rate: lock a fixed plan so market swings don't reach you mid-term, and compare every plan at your real usage. See also will data centers raise your bill for how the demand surge specifically flows through to what you pay, and ERCOT grid alerts explained for what the Weather Watch, conservation appeal and Energy Emergency Alert notices mean when the margin gets thin.

Who controls the grid, and who owns it?

ERCOT — a nonprofit — operates the grid under PUCT and legislative oversight. It doesn't own the power plants or the wires; those belong to a mix of private companies, city-owned utilities, and electric cooperatives. Because the grid stays within Texas, federal regulators have little say. That's the whole point of the arrangement: Texas control, Texas rules — with the reliability trade-off that comes from going it (mostly) alone.

Where Texas power comes from

Texas leads the nation in wind and is a top solar and battery builder, alongside a large natural-gas fleet that still provides most of the on-demand power. For the full breakdown and how the mix is shifting, see the Texas electricity generation mix.

Common questions about the Texas grid

Is ERCOT owned by the government? Who funds it?

No — ERCOT is an independent nonprofit membership corporation, not a government agency. It's funded mainly by a small "System Administration Fee" on each megawatt-hour of electricity used on the grid — a fraction of a cent per kWh — not by state tax dollars. It answers to the PUCT and the Legislature, and after 2021 its board was restructured to add independent, Texas-resident directors.

Is the Texas power grid a monopoly?

Partly — and the distinction is worth knowing. The wires (the poles and lines your TDU runs — Oncor, CenterPoint, AEP Texas, TNMP) are a regulated monopoly: one utility per area, rates set by the PUCT, nothing to shop. But the part you actually shop for — your retail energy plan — is competitive, with dozens of providers. Delivery is a monopoly you can't shop; energy is a market you can.

How old is the Texas power grid?

The interconnected Texas grid dates back to World War II, when utilities linked up to share power for the war effort. ERCOT itself was formed in 1970 to manage reliability after a major Northeast blackout, and became the operator of the competitive retail market when Texas deregulated in the early 2000s.

How does ERCOT set electricity prices?

ERCOT sets wholesale prices, not your retail rate. It continuously matches supply and demand, and the wholesale price rises when power is scarce (scarcity adders, plus a system-wide cap in tight conditions). Your provider buys at those wholesale prices and packages them into the fixed or variable plan you sign — which is exactly why locking a fixed rate shields you from the swings ERCOT's market reflects.

The grid you can't control — the rate you can

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Sources (verified Aug 2026): PUCT — Texas Energy Fund · Texas Tribune — grid five years after Uri · Niskanen Center — DC ties & Southern Spirit. Grid conditions and projects change; this guide is informational, not a reliability guarantee.