Warnings are issued by ERCOT when there is a high risk that rotating outages will be needed to reduce load.

FORBES: Lights Dimming in Texas; Rolling Blackouts Likely

The emergency procedures are a progressive series of steps that allow ERCOT to bring on uncommitted generation and power from other grids.

FORBES: Lights Dimming in Texas; Rolling Blackouts Likely

In a preview earlier this month of its future energy needs, ERCOT predicted that it would not meet its reliability standards by 2009.

FORBES: TXU's Vanishing Plants

In fact, according to the Electric Reliability Council of Texas (ERCOT), the state's grid operator, more than 150 new generation facilities are in the development stage.

FORBES: TXU's Vanishing Plants

If the situation does not improve, ERCOT will first drop load resources (a market-based demand response program) and other resources under contract to be interrupted during an emergency.

FORBES: Lights Dimming in Texas; Rolling Blackouts Likely

Only as a last resort (Power Emergency) to avoid the risk of a complete blackout does ERCOT ask utilities to reduce demand by dropping load through rotating outages.

FORBES: Lights Dimming in Texas; Rolling Blackouts Likely

But ERCOT cannot count on those facilities being built because they do not yet have regulatory permits or agreements to interconnect with other parts of the electric grid.

FORBES: TXU's Vanishing Plants