How a Texas electric co-op rebuilt for reliability

As Texas battles another bout of bitterly cold weather, Energy Gang looks at the lessons that one generation and transmission electric co-operative learned from Winter Storm Uri in 2021. The freeze and subsequent shock to energy prices showed providers how dangerous it can be to rely on the market alone.

For Rayburn Electric, a not-for-profit, member-owned cooperative, incurring years of power costs in just days was a catalyst for a fundamental reset of its approach to risk and resilience.

Host Ed Crooks is joined by Rayburn’s President & CEO David Naylor, and General Counsel Chris Anderson, to hear the story of how they rethought how the co-op could best serve its members, and implemented its new strategy. The crucial steps included a first-of-its-kind securitization for a co-op, to spread costs over decades, and a strategic pivot toward owning generation as a natural hedge for its electricity sales. The co-op bought a power plant, now called the Rayburn Energy Station, and has RES 2 in the works, to meet reliability needs amid rapid load growth. David and Chris share what changed inside the organization too, driven by the principle that ‘status quo is not company policy.’

Operating exclusively within ERCOT, Rayburn provides power to approximately 625,000 Texans across sixteen counties, working collaboratively with four local distribution co-ops. Its infrastructure includes more than 265 miles of transmission lines and more than 1,000 MW of owned generation capacity, including the Rayburn Energy Station, a combined-cycle natural gas plant added to strengthen reliability after Winter Storm Uri.

How do you prepare for a 25% jump in electricity demand over the next decade? Rayburn Electric Cooperative is answering that question now.  

Serving four Member-owned electric systems in North Texas, Rayburn is planning ahead by investing in power supply that shows up when it’s needed most. One major gas-fired plant, Rayburn Energy Station, was acquired in 2023 and a second is being added to the grid in early 2028. Together, they support population growth, economic momentum, and extreme weather readiness.  

These long-term investments give Rayburn and its Members greater control over supply and system performance. To learn more about how Rayburn is planning for the future, visit rayburnelectric.com.