Winter Storm Uri: What, Who, How and Why Texas’ Power Grid and ERCOT Failed Houston

Winter Storm Uri: What, Who, How and Why Texas’ Power Grid and ERCOT Failed Houston

An Overview of the Texas Power Market to Understand the Impacts of Winter Storm Uri

Written by Michelle Avalos, Deputy Director of Impact Hub Houston 

It’s February 22, 2021, and millions are dealing with the aftermath of the winter storm that ran across Texas last week. As our community bands together, mourns the friends and family we’ve lost, and aid begins to reach Houstonians in need, some of us are starting to piece together the facts so we may be able to co-create recovery and resiliency solutions to prevent this from ever happening again.

To support these efforts, we’ve put together a high level and unbiased outline focusing on mapping the existing process and infrastructure of the Texas power market. We hope this will give you some clarity and allow you to better problem solve as we move forward.

The first thing you need to know is that the United States is broken up into three primary power market transmission grids called the Western, Eastern and Texas Interconnection. Yup, most of Texas stands alone. Why? Interestingly enough, our grid underwent changes in 1970 after a major blackout that occurred in the Northeast in 1965. Since then, our state’s power grid has undergone several hiccups, but we’ve continued to remain independent from the rest of the country, with only minor connections to the Eastern and Western grids as well as to Northern Mexico’s grid. If you want to dig deeper into the history, check out this article by the Chron.

Figure 1. U.S. Power Grid Map (Source: EPA) 

Figure 1. U.S. Power Grid Map (Source: EPA) 

There are two primary characteristics of the Texas Interconnect: 

  1. The Texas grid system has minimal transmission interconnections to the other grids in the U.S.; and, 
  2. Our power market is largely unregulated, which means no single entity has a monopoly on the sale of electricity in the state. As a result, across most of Texas, consumers can choose their electricity provider.

Our power market is run by a power grid operator, or Independent System Operator (ISO), called The Electric Reliability Council of Texas, or “ERCOT.” There are six other ISOs in the U.S. and a couple more in Canada. (See Figure 2.)

Figure 2. Map of Other ISOs in North America (Source: CME Group)

Figure 2. Map of Other ISOs in North America (Source: CME Group)

ERCOT, however, is one of the least interconnected to the rest of the country’s grid. In a way, you can say that ERCOT is an island, which you can see more clearly in Figure 3, below.

Figure 3. Map of U.S. Grid Interconnections (Source: EIA)

Figure 3. Map of U.S. Grid Interconnections (Source: EIA)

So, what is behind our “Power to Choose” in Texas?

A lot of people assume that their electricity provider is also the one generating the actual power for their homes or businesses. Nope. In fact, for most providers, this is not the case.

While some electricity providers own generation facilities, most are just retailers who purchase power in bulk from the wholesale market, then, mark up the price to sell it to customers on the retail market. In other words, most of the electricity providers we have accounts with are like grocery stores: They are responsible for selling, managing, and providing support to the customers (you and me), while profiting from their retail price markup margins. In the Houston area, there are about 50 of these companies for the residential sector.

Some people think that CenterPoint Energy is the one generating our power in Houston. Not true. CenterPoint Energy is responsible for the delivery of power and maintains the infrastructure (wires/ poles) that allows electricity to reach the 2.3 million customers in the Houston metro area. CenterPoint Energy also distributes natural gas for cooking and heating, but they do *not* generate or sell electricity to customers.

So then, who actually produces our electricity?

There are 500+ independent power generators across Texas. They own and operate the power plants that convert various fuels and renewables into electricity for our power grid. However, the power generators across our state do not decide when and how much power is produced for customers. They are only able to submit offers to sell their generation capacity at a given price in hopes that they will be selected (or dispatched) to supply electricity to meet the markets demand for energy. These offers get sorted into a “supply stack” and dispatched daily starting with the lowest price offers.

Who tracks our power needs and signals the power generators to produce electricity?

ERCOT, our power grid operator, is responsible for properly managing the supply of power to meet the actual or “real-time” demand and importantly, the system operator must ensure a balanced market at all times. What balancing really means is that if power demand is greater than the available power supply, ERCOT will forcibly reduce demand by executing power blackouts. ERCOT estimates short and long term power needs, but ultimately, the market supply and demand balance is managed by 24/7 operations. The forecast generated by ERCOT serves to let power generations know when they might be needed but does not give them any guarantee that they will be dispatched.

Is ERCOT the one buying and selling the electricity for the grid?

No. ERCOT does not buy or sell the electricity on our power grid. They just coordinate the various pieces to ensure balance. You can think of ERCOT as a real time matchmaker between the power generators and our demand for electricity. The buying and selling ultimately happens 1) on the wholesale market (between the power generators and the electricity providers) and 2) on the retail market (between the electricity retailers/providers and the commercial/residential customers).

Figure 4. Flow of Electricity under ERCOT Structure

Figure 4. Flow of Electricity under ERCOT Structure

 

Before we move to outline the impacts of the winter storm, here are a couple more important factors you need to know about our power market:

We explained how the deregulated market works for you as the customer, but how does the market impact the companies who are producing our electricity?

The power generators that operate inside of ERCOT make decisions about their fuel source, infrastructure, operating schedule and more based on forecasted demand trends and their need to operate a profitable business. These power generators only make money when ERCOT selects their price offer for a certain amount of electricity and dispatches their power plant to add electricity supply to the grid. The power generators receive revenues only for the actual amount of electricity that is dispatched by ERCOT and consumed by the end user. If you are a power generator and your price offer is not selected by ERCOT, you don’t make money that day and your power plant just sits there. This revenue structure is referred to as an energy payment. 

In Texas, most power generators receive the bulk of their energy payments in the peak summer months, particularly late July and August. During the winter months, when our state’s electricity demand is typically lower, some power generators tend to schedule power plant maintenance or full shutdowns because the likelihood that they will be dispatched and paid to generate power is significantly lower.

Seems pretty straight forward, right? 

Well, this is how the structure defers from other states:

Power generators that operate in a regulated market also get paid a capacity payment which is calculated based on the maximum output that the power generator can produce. States that offer capacity payments to power generators will pay the amount even if the respective power plant is not called upon to produce electricity. Essentially, the state pays the capacity payment to have the power plants built and available as needed. When those plants are dispatched, energy payments will also kick in.

Power generators operating inside of ERCOT do not receive capacity payments: They do NOT get paid to be on standby. This payment structure lowers the power generator’s incentive to make other significant investments to their facilities. 

So, how did Winter Storm Uri shock the ERCOT power grid?

There are a fair share of articles to choose from that are aiming to answer this question. Here’s a brief summary:

  • The Texas grid is set up to support peak demand during the summer heat but doesn’t have similar reliability measures in place during our winter months.
  • Last week, electricity demand for heating spiked as a response to the winter storm. 
  • The spike in demand occurred in the midst of scheduled power plant maintenance and shutdowns which traditionally take place during winter in Texas. These are referred to as planned plant outages.
  • The power plants that were actually operating and able to generate electricity for us also ran into unplanned outages caused by the extreme weather conditions. 
  • This combination further cut the supply of electricity to the grid. 
  • ERCOT’s supply stack became very thin and it was not able to dispatch sufficient power generators to meet our electricity needs.
  • Millions were left without power for days.
  • While the power generators worked to get their facilities back online and ERCOT worked to prevent a full system shutdown, pressure was placed on the consumer (you and me) to conserve power.
  • After a series of rotating outages and forced power cuts, more Houstonians began to regain power until eventually, ERCOT’s supply stack was replenished and supply and demand was rebalanced. This was also supported by a drop in heating demand from the customers once the extreme weather had past. 

Our largest bottlenecks during the storm were both the physical infrastructure and the nature of how our power grid functions.

As mentioned , February is historically not a peak demand season in Texas. This meant that several power plants were previously scheduled to undergo maintenance because they didn’t expect to be called upon to generate power this month. The maintenance process varies by power plant type, age and other factors. The duration of the maintenance can last for days, weeks or months depending on the needs of the respective power plant. Once a power plant is undergoing maintenance or a full shutdown, they can’t immediately flip the switch to be back online.

On February 8, ERCOT sent an Operating Conditions Notice (OCN) to all power generators to prepare their power plants for the anticipated winter storm. The Chron outlines the timeline that followed in this article which is derived from the Operating Messages sent by ERCOT in the days to follow.

Power generators received about a four to five day notice to prepare their facilities. Whether or not this was sufficient time for the power plants that were offline to come back online is truly dependent on where they were in their maintenance/shutdown process.

As the winter storm moved in, we also began to see unplanned outages at the power plants that were still online. These outages occurred for a couple of reasons: 1) infrastructure at the facilities was not prepared for harsh winter weather, and 2) at some point, access to the fuel sources was also obstructed by the winter weather conditions.

Why didn’t we have any back up power?

Looping back to how our power generator makes money: Since they only receive “energy payments” and not “capacity payments,” power generators are not incentivized to build and manage back up power facilities, so they don’t.

In a time of crisis, our “Power to Choose” worked against us.

The outcomes of Winter Storm Uri shed a light on fundamental opportunities for improvement to our power grid. The same structure that was set up to save us money on electricity, also worked to disincentives investments in infrastructure that could have prevented the massive outages that occurred last week. 

There are so many other factors we can discuss around this topic, but for now, we want to leave you with an objective outline so that you, dear problem solver, can use this information as you digest and prepare for the decisions to come.

What will Texas choose going forward?

What do we truly want as consumers when it comes to our access to electricity? 

 

Helpful Links for Additional Research:

Impact Hub Houston and SpenDebt Announce New Economic Empowerment Partnership to Help People Do Well While Doing Good

Impact Hub Houston and SpenDebt Announce New Economic Empowerment Partnership to Help People Do Well While Doing Good

Impact Hub Houston and SpenDebt Announce New Economic Empowerment Partnership to Help People Do Well While Doing Good

Furthering its goals to Reduce Inequalities and promote Decent Work and Economic Growth, Impact Hub Houston (IHH) is proud to announce a new partnership with SpenDebt, a Houston-based fintech company on a mission to help one-million families turn every swipe of their debit card into an investment in their future.

Joined by a common mission — to strengthen local economies and empower people to improve their financial situations so they can get on the path to wealth creation — Impact Hub Houston and SpenDebt decided to launch this partnership during Black History Month, to spotlight SpenDebt, a black-owned startup founded in Houston, and its financial tools platform.

Under the partnership, SpenDebt will offer members of the Impact Hub Houston community the opportunity to use the app for FREE for 3 months. Anyone who would like to participate in the partnership pilot can sign up for an account at SpenDebt and enter “IHH” (case sensitive) under the promotion code to receive the 3 months free.

SpenDebt will help participants set their own goals to pay down their debt as they use their debit card for everyday purchases. Users will also be able to donate to Impact Hub Houston alongside their micropayments; and SpenDebt will generously match up to $500 for all donations made to Impact Hub Houston. Participants are welcomed to continue to use the application after the 3 month offer, and the $0.10 per transaction will continue to be donated to Impact HUB Houston every month.

Impact Hub Houston encourages people to begin paying down their debt through manageable micropayments, so they can get on a faster track to positive wealth creation. To learn more about SpenDebt and how it can help you improve your financial situation, SpenDebt Co-Founder Kiley Summers will present it and answer questions during Houston’s Open Project Night on February 10 at 5:00pm.

SpenDebt is a financial technology company designed to assist people to pay off debt, leveraging micropayment through everyday transactions. SpenDebt is on a mission to help save one million families from financial fatalities every time they swipe their debit cards or have a banking transaction.

Impact Hub Houston is a 501(c)(3) non-profit impact innovation incubator that equitably empowers diverse changemakers and entrepreneurs working to solve society’s most pressing issues. A member of the Impact Hub global network — recognized by the United Nations as the world’s largest community for accelerating entrepreneurial solutions towards measurable and scalable impact for the Sustainable Development Goals (SDGs) — Impact Hub Houston provides intentional programs, an inclusive innovation ecosystem, and an international network of experts and peers aligned to inspire, connect, and empower people to create the change they wish to see in the world.

Announcing: #MarketBlack! Impact Hub Houston and The Black Marketing Initiative Team Up to Support Black-Owned Businesses

Announcing: #MarketBlack! Impact Hub Houston and The Black Marketing Initiative Team Up to Support Black-Owned Businesses

Impact Hub Houston and the Black Marketing Initiative Partner to Launch “#MarketBlack”: A Virtual Business Success Training and Small Business Fund for Houston Area Businesses.

In service to our community, and in honor of Black History Month, Impact Hub Houston and the Black Marketing Initiative (BMI) are excited to announce #MarketBlack — BMI’s new training, mentoring, and networking program specifically designed to help black entrepreneurs and small business owners in the Greater Houston area elevate their businesses, connect with resources, and uplift them during and after the pandemic, with the belief that community can positively impact us all.

Designed by educators and entrepreneurs, #MarketBlack brings together 7 weeks of expert-led workshops, creative community cultivation, and interactive training modules specifically geared toward Black entrepreneurs in Houston. Impact Hub Houston serves as The Black Marketing Initiative’s fiscal sponsor for the project, to provide promotional and fundraising support, access to its network and community, and ensure the project’s success. Another key community partner, Sankofa Research Institute, is providing research services for the program, tracking partners’ and participants’ progress and outcomes in order to report on the health of Houston’s black business community and determine the efficacy of the program.

MarketBlack enjoys the support of more than 20 businesses and entrepreneurs in the Houston area, and is continuing to grow every day. In addition to Impact Hub Houston and The Black Marketing Initiative, partners and participants in the project include: Action One Media, Marcus Bowers of Marcus Bowers TV and She’s Happy Hair, Sankofa Research Institute, Choose to Do, Inc, Emergent Business Solutions (the creator of African Fashion Week), South Union CDC of the Sunnyside Energy Project, and many local business owners who are serving as expert panelists, instructors, and financial partners throughout the program.

Action Jackson, one of the leaders and organizers of MarketBlack, shares: “The Black Marketing Initiative is not just about being Black — it is also about the belief that community can positively impact us all. Successful Black entrepreneurs are good for business. Good for community. Good for everybody. We have to be the change we want to see. Join us in our mission to not only ensure Black Owned Businesses survive, but THRIVE! Be a part of history TODAY: Help us raise money to ensure sustainability of small businesses in our area. Together, #WeAllCanWin!”

To learn more, visit https://houston.impacthub.net/black-marketing-initiative/

You can help Houston’s black entrepreneurs by supporting the program now at https://www.betterunite.com/marketblack!

Learn more about the Black Marketing Initiative and the MarketBlack Program at BlackMarketingInitiative.com

THANK YOU for making THIS 2020 a success!

THANK YOU for making THIS 2020 a success!

We are grateful for YOU! After a year riddled with challenges and crisis, we truly appreciate all of you who stepped up to host an event, made time to speak and share your insights, and showed up to connect with and learn from your peers for The Houston Innovation Summit this year. You helped ensure Houston and Texas were at the top of people’s minds for Innovation + Impact during Global Entrepreneurship Week (GEW).

Thanks to you, Houston became the #3 city in the country for GEW this year!

A few quick stats on #THIS2020:

  • Number of Houston-based events and conferences: 55
  • Approximate number of speakers and participants: 1513 people
  • Estimated Social Media Reach: 185,725 people
  • Reach Outside of Social Media: 654,128 people

What did you think of the summit? Please let us know by answering this 3-5 minute survey: http://bit.ly/THIS-Survey

Couldn’t make all of the events and want to see what you missed?

We started uploading some of them to our YouTube channel — please subscribe to learn when new sessions are posted! A few highlights that are currently available:

 

Congratulations to the Climathon Houston 2020 Winners! (View a video recap of this year’s idea pitches, hackathon sessions, and awards ceremony here.)

 

Want to stay connected with the #HOUImpact community? Here’s how:

Lastly, if you took any fun screenshots, photos, or video during the summit, please share them with us on online by tagging us and adding #THIS2020 + #HOUImpact.

We hope you’re having a wonderful holiday weekend; and we look forward to seeing you on the interwebs again soon!

Cheers to impact,
Grace, Michelle, and the Impact Hub Houston community

P.S. Established in 2017 after Hurricane Harvey, THIS celebrates Houston’s impact + innovation ecosystem by bringing together startups, entrepreneurs, funders, talent and support organizations through a week of programs and events. If you’d like to participate in THIS next year as a sponsor or event host, please contact Grace!

Special Thanks to Houston Downtown Redevelopment Authority, Syzygy Plasmonics, Cy-Fair Federal Credit Union, Houston Exponential, HCC, Z Labs, SoGal Foundation, Greentown Houston, and Impact Hub Houston Members for your continued support!

We hope you’re staying safe and taking care of yourself. If you think you’ve been exposed, you can find local testing locations at https://covidcheck.hctx.net/.

Join Us for THIS: The Houston Innovation+Impact Summit November 16-22!

Join Us for THIS: The Houston Innovation+Impact Summit November 16-22!

Announcing the Fourth Annual “THIS: THE HOUSTON INNOVATION SUMMIT” – Celebrating Houston During Global Entrepreneurship Week!

October 28, 2020 – Houston, TX – Impact Hub Houston, a 501c3 nonprofit startup incubator dedicated to helping diverse changemakers and social entrepreneurs launch impact-driven ventures, is excited to announce the fourth annual “THIS: The Houston Innovation Summit.” A week-long celebration of Houston’s entrepreneurial ecosystem during Global Entrepreneurship Week, November 16-22, THIS 2020 focuses on the intersections of Innovation and Impact, bringing together economic stakeholders, startups, startup development organizations, entrepreneurs, investors, funders through a series of events around the Global Entrepreneur Network’s themes of “Education, Ecosystems, Inclusion, Policy.”

“Each year, Global Entrepreneurship Week amplifies the great work being done to support entrepreneurs across the country while connecting them to more opportunities to start and scale in their own communities,” said Ellen Bateman, director for U.S. ecosystems at the Global Entrepreneurship Network. 

“From the COVID-19 pandemic to racial injustice to the increasingly dire effects of climate change to one of the most polarized political environments this generation has seen, 2020 has presented a number of crises for changemakers to respond to” said Grace Rodriguez, CEO/Executive Director of Impact Hub Houston and Founder of THIS. “But Houston is resilient. Houstonians are resilient. We’ve made great strides in rising to this year’s challenges by launching new resources to help diverse communities survive and thrive; by strengthening collaboration among our startup and small businesses ecosystems to support diverse entrepreneurs; and by developing more inclusive practices and sustainable policies for our city to move forward. We are excited to bring together Houston’s startup community and Impact Hub’s global network to showcase this progress, share lessons learned, and raise awareness for our innovation ecosystem internationally. With many in-person events postponed and people continuing to work from home, THIS is a great way to help everyone connect, get inspired, learn from and celebrate each other as we grow the next generation of big ideas.”

THIS 2020 highlights include:

To register for any of these programs and learn more about the full schedule of events, please visit http://thehoustoninnovationsummit.com > Full Calendar

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About Impact Hub Houston (https://houston.impacthub.net)

Impact Hub Houston is a locally rooted, globally connected, 501c3 nonprofit startup and small business development organization that works to make Houston a role model for how the world solves its most pressing issues. A member of the Impact Hub global networkthe world’s largest community recognized by the United Nations for accelerating entrepreneurial solutions towards measurable and scalable impact for the Sustainable Development Goals (SDGs)Impact Hub Houston intentionally designs places, platforms and programs to empower diverse changemakers, social entrepreneurs, and impact supporters and build an inclusive innovation ecosystem that looks like Houston and works for all.

About Global Entrepreneurship Week (https://www.genglobal.org/gew)

Global Entrepreneurship Week is the world’s largest celebration of the innovators and job creators who launch startups that bring ideas to life, drive economic growth and expand human welfare. During one week each November, GEW inspires people everywhere through local, national and global activities designed to help them take the next step in their entrepreneurial journey. These activities, from large-scale competitions and events to intimate networking gatherings, connect participants to potential collaborators, mentors and even investors — introducing them to new possibilities and exciting opportunities.  

Diverse Entrepreneurs: We Want to Help You! #CloseTheGap

Diverse Entrepreneurs: We Want to Help You! #CloseTheGap

If you are an impact-driven social entrepreneur and have an idea or startup that is creating a positive impact in your community, we are launching “Close the Gap” to help accelerate your project!

To encourage and support change on a community level, Impact Hub and adidas have partnered to support 30 early-stage social start-ups, non-profit organizations, or initiatives from around the world.

The aim is to empower businesses that are led by underrepresented entrepreneurs, BIPOC (Black, Indigenous, and People of Color) and changemakers who are supporting diverse populations to close the opportunity gap through education and/or sports. This will be done by providing tailored virtual support, expert advice, and networking opportunities.

If selected, you will receive:

  • Expert business advice from adidas’ employees on the main challenges facing the entrepreneur.
  • Venture visibility in the Impact Hub and adidas network.
  • A FREE Global Connect Membership and access to the Impact Hub network.

Get your idea off the ground and apply now! > https://closethegap.impacthub.net

Celebrating Juneteenth with our First Core Conversation & Curated Calendar of Events

Many thanks to all who joined the kick-off to our new series, “Core Conversations,” this week! Aimed at raising awareness, understanding, and action for the issues that profoundly impact our community, each Core Conversation will examine a Global Sustainable Development Goal (SDG) within our local context, provide space to reflect, challenge our assumptions, and explore potential solutions to society’s wicked problems.

We intentionally kicked off our new “Core Conversations” series this week in honor of Juneteenth — “America’s Second Independence Day” — to shed light on racial discrimination and share ideas on how we can work to reduce inequalities (SDG 10) and promote decent work and economic growth (SDG 8) for all. Most importantly, we hope it moves you to reflect on your own role in your community, learn why black lives matter, and explore what you can do to be the change for racial equity and social justice.

Today’s conversations — inspired by John Lewis’s quote, “If Not Us, Then Who? If Not Now, Then When?” explored how race and racism impact systemic and generational health, social, and economic outcomes; and shared how members from Impact Hub Baltimore, Impact Hub Boston, and Impact Hub New York Metropolitan Area are working to improve those outcomes. Our speakers included Phillip Yates (Attorney, Equiliberty Founder/CEO, The Diversity Fund Co-Founder, Impact Hub Houston Board Chair); Kelvin D. Lyons Jr. (“What’s Good, Bro?” podcast Co-Host); Kerry Bowie (Msaada Partners Managing Partner); Karen Brown Stovell (Forward Ever Executive Director); and Michelle Avalos (Impact Hub Houston Director of Operations).

We were able to record the conversation with Phillip so you can learn about his experiences as a “First Generation Black American” and how that inspires and impacts who he is and what he does: https://youtu.be/AjFiVQrWJIU

In honor of Juneteenth this Friday, you’re invited to continue learning from black perspectives through a variety of virtual talks, performances, workshops and celebrations led by black organizations across the country. We’ve curated a few highlights on our calendar — https://bit.ly/juneteenth2020events — notably:

We are putting our Core Values to the test to reflect, re-examine, and re-imagine who we are and who we want to be as a community, so we can see where we fall short and strategize how we should move forward. We hope you’ll continue to join us on this journey!

If you have topics you’d like us to explore, please let us know on LinkedInFacebookInstagram, or Twitter. And if you’d like to connect with other Impact Hubs around the country, you can find links to them through our map at https://houston.impacthub.net/globalnetwork/.

Be safe and well!
In community and solidarity,
Grace and Michelle
Impact Hub Houston

P.S. Here’s a round-up of links and resources from the event, for your reference:

Initiatives, organizations and resources to learn from, support, and take action on:

Impact Hub Baltimore: https://baltimore.impacthub.net/stories-2/

Impact Hub Boston: https://impacthubboston.net/Boston/boston-region/black-lives-matter/

Impact Hub Houston: https://houston.impacthub.net/on-inclusion-and-equity-let-our-actions-speak-loudly/

Impact Hub New York Metropolitan Area: https://newyork.impacthub.net/

What’s Good, Bro? (WGB?):

 

Many thanks to our peers around the world — including  Impact Hub Zurich, Impact Hub Manila, and all of our Impact Hub fam around the world — for standing beside us in denouncing racism, xenophobia, prejudice and bigotry in all forms!

On Inclusion and Equity: Let Our Actions Speak Loudly

Since the inception of Impact Hub Houston, we have worked to build not only an inclusive and equitable community, but also a welcoming and supportive one — a community that opens it doors, resources, and network to people from all walks of life. You can see it in our team, in our board, in our partners, and in our mentors and advisors. You can see it in our community, on our panels, in our workshops, and at our events.

To us, diversity is not just a commitment ⁠— diversity is who we are. Diversity is the expression of our very existence. It’s why inclusion and equity are core to what we do: If we leave anyone behind, we fail. If we lock anyone out, we lose. If we do not work to engage, empower, and elevate our neighbors who have been overlooked, marginalized, disadvantaged, under-served and under-invested in, we cannot build an authentic ecosystem that looks like Houston, works like Houston, and works for Houston. For one of the largest and most diverse communities in the United States, anything that falls short of that would be unacceptable.

Which brings me to the reason for writing this. Amidst a sea of statements on racism and police violence against black Americans from many of the world’s leading companies, triggered by the murder in Minneapolis of Houston’s own George Perry “Big Floyd,” Jr., we did not want to add more noise to the fray. We opted to step back and make space for black voices to be heard and amplified. So we joined #BlackOutTuesday on social media and shared resources from black leaders and ways to support black lives.

 

Rather than issue a statement, we let our actions speak for us.

 

Our team continued to serve our members, support diverse entrepreneurs, and address inequalities:

But the violence hasn’t stopped. The virus hasn’t stopped. And both continue attacking communities of color in ways we can’t solve in silence.

In public spaces across America, we watch as peaceful protesters and journalists exercising their First Amendment rights get tazed, peppersprayed, shot with rubber bullets and flashbangs, beaten, kicked, knocked unconscious, rammed by vehicles, hospitalized and arrested without cause…by the very people who are supposed to serve and protect us. We’ve seen white people call the cops and attempt to weaponize the police against men of color. At the same time, Houston and Texas have seen the highest increases in COVID-19 cases since the pandemic hit our region.

We must ask ourselves tough questions.

We must not re-build broken systems, but re-imagine better ones.

We must co-create transformational, generational change.

We must act loudly.

 

Our commitment:

  • We stand against racism, colorism, and all forms of discrimination, hate, and humiliation.
  • We will convene diverse organizations and organizers to identify root causes of systemic disparities, and collaborate with them to develop holistic solutions for equitable outcomes.
  • We will divest from partnerships and projects that perpetuate institutionalized discrimination.
  • We will invest in re-imagining and co-creating programs that generate inclusive opportunities for upward mobility and wealth creation for the historically disadvantaged.
  • We will call out performative activities and prejudices that prevent full economic justice and equal opportunity for our diverse communities.
  • We will hold ourselves publicly accountable to these commitments.

 

We cannot wait for someone else to save the day.

We must become the heroes of our own story.

We invite you to join us and be the change, too.

 

“If not us, then who? If not now, then when?”

– John Lewis

 

Resources to learn more about the underlying issues and ways to practice inclusion and allyship:

We Proudly Support CARES Act Aid to Underserved Businesses through the Page 30 Coalition

We Proudly Support CARES Act Aid to Underserved Businesses through the Page 30 Coalition

We are proud to announce our support to champion diverse businesses in underserved and rural communities as a member of the Page 30 Coalition. The coalition aims to push a legislative and regulatory agenda by working with partners around the country to ensure that the critical constituencies recognized on Page 30 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act receive the prioritization that Congress intended. With hundreds of billions already deployed and billions more likely to be released through subsequent COVID-19 packages, Page 30 Coalition is fighting to ensure more is done for these at-risk and underserved businesses.

The Page 30 Coalition was named for the section of the CARES Act from late March of 2020, that reads:

It is the sense of the Senate that the Administrator should issue guidance to lenders and agents to ensure that the processing and disbursement of covered loans prioritizes small business concerns and entities in underserved and rural markets, including veterans and members of the military community, small business concerns owned and controlled by socially and economically disadvantaged individuals, women and businesses in operations for less than 2 years.

To ensure this prioritization is realized, the Page 30 Coalition has formed a national alliance of industry-leading-organizations to shape America’s legislative and regulatory small business landscape by aggressively advocating for equitable policy solutions that bolsters growth for underserved firms in the years ahead.

Our priorities include:

  • Expand the Paycheck Protection Program (PPP) through December 31, 2020
  • Eliminate the PPP “first come, first serve” rule and provide prioritization to underserved communities
  • Extend covered period for PPP loan forgiveness
  • Expand economic resources for small businesses with 10 employees or less
  • Dedicate additional aid to America’s most vulnerable small businesses, particularly women, minority, rural, veteran, and start-ups
  • Call for participating lending entities to provide greater transparency on federal loan disbursement data

We will start sharing updates through our social media accounts on the coalition’s work to support diverse entrepreneurs through non-partisan policy advocacy.

To learn more about the coalition:

To connect with the coalition, you can contact Jamon Phenix, the Coalition Manager, at [email protected]

Support for the coalition, from some of its national members:

Asian/ Pacific Islander American Chamber of Commerce and Entrepreneurship
“COVID-19 has had a devastating impact on the more than 2 million AAPI businesses in the U.S. Federal relief programs, while welcome and necessary, are only as good as their accessibility. Our community continues to lack federally mandated in-language resources, and many eligible applicants continue to be turned away from participating lenders. We must prioritize our vulnerable populations, which is why the Asian & Pacific Islander American Chamber of Commerce and Entrepreneurship (National ACE) is proud to be a founding member of the Page 30 Coalition.”
– Chiling Tong, President & CEO, National ACE

 

U.S. Black Chambers, Inc.
“The pandemic is taking a devastating toll on Black-owned businesses. As the voice of Black business owners, we’re calling on Congress to enforce a triage approach to helping small businesses recover from the pandemic. A first come first served approach is utterly unacceptable. Small businesses deserve more, too often aid funding goes to the fastest and savviest, when in fact, those who are hit the hardest deserve to be treated first.”
– Ron Busby, President & CEO, U.S. Black Chambers, Inc.

 

U.S. Hispanic Chamber of Commerce
“Small business is big business for us at the United States Hispanic Chamber of Commerce. We know our economic power and we will exert our influence for many years to come to provide a strong advocacy voice to the benefit of small, Hispanic and minority-owned businesses.”
-Ramiro A. Cavazos, President & CEO, United States Hispanic Chamber of Commerce.

 

Association for Enterprise Opportunity
“While some initially believed the pandemic would act as ‘the great equalizer,’ the truth is that COVID-19 is disproportionately impacting businesses and communities that were already at an economic disadvantage. To reverse this course, policy makers must take rapid and decisive action now. The coronavirus economic relief packages are overlooking millions of micro and MainStreet businesses, which represent more than 90 percent of all businesses in the U.S. For the sake of our nation’s economy, we must ensure that the spirit and intention of the CARES act is carried out by prioritizing businesses that are most vulnerable—those that are owned by people of color, veterans, immigrants and others who operate in low and moderate income communities.”
-Connie Evans, President & CEO of Association for Enterprise Opportunity.

 

Association of Women’s Business Centers
“AWBC is pleased to participate in the Page 30 coalition and help raise awareness about CARES Act priority in aiding underserved businesses, including women-owned businesses, as outlined by page 30 of the bill.”
– Corinne Hodges, CEO of Association of Women’s Business Centers.

 

Aura
“The Page 30 Coalition has come together in support of Latinx and minority-owned small businesses and independent workers that have been left behind in this crisis. We need to provide lasting and equitable relief for these businesses and workers, especially through the development of institutions and infrastructure to deploy capital to hard-to-reach, underbanked communities. Page 30 is focused on developing these institutions and ensuring that Community Development Financial Institutions (CDFIs) can fill this void, especially for micro-small businesses and their essential workers.”
-James Gutierrez, CEO & Co-Founder of Aura.

 

Gusto
“Small businesses make up nearly 50% of our GDP and 50% of our labor market. They are essential to our communities, our economy, and our lives. Gusto data shows that those who can least afford it are being the hardest hit by COVID layoffs. We must prioritize delivering aid to the businesses that need it the most.”
– Lexi Reese, Chief Operating Officer of Gusto.

 

Prosperity Now
“The millions of small businesses owned and operated by people of color and other traditionally underserved populations in this country are the primary source of jobs and incomes for their communities and provide critical services. Despite their importance, they are not getting the stimulus dollars they need to help them stay afloat during the COVID-19 pandemic. The mainstream banks in charge of distributing this relief too often overlook these businesses and should not be the primary vehicles responsible for lending out this money. Instead, stimulus dollars should be set aside for Community Development Financial Institutions (CDFIs) and other financial entities that are best equipped to support them. The mission of CDFIs is to provide financial products and services to underserved communities like minority-owned small businesses, and they are uniquely positioned to do so. These businesses are a lifeline for these communities and need to be saved during this crisis so they can continue to contribute and thrive, rather than be left to fend for themselves.”
– Gary Cunningham, President & CEO of Prosperity Now.

Impact Hub Joins Alliance to Help Social Entrepreneurs Overcome Impacts of COVID-19

We are a community that cares. In addition to the work that Impact Hub Houston is doing locally to support our members and community through current crises, we proudly join the Impact Hub Network in the #COVIDResponse Alliance for Social Entrepreneurs: an unprecedented collaboration among 40+ global organizations to support social entrepreneurs alleviating suffering and advancing new models of change for a more inclusive, equitable, and sustainable world.

The Alliance represents 15,000+ social entrepreneurs who have impacted 1.5 billion people in over 190 countries. From providing basic needs to contact tracing initiatives, their work is critical as they reach those who the market and governments are unable to account for.

With over 100 communities of impact-driven entrepreneurs in more than 55 countries and running more than 200 programs annually, Impact Hub is a key part of entrepreneurial ecosystems the world over. We are invested in helping to build a greener, fair and equal society, supporting social enterprises that are addressing the Sustainable Development Goals. This puts us in a unique position of being able to understand and assist entrepreneurs in their recovery, as well as having the insight into how the post-COVID-19 world can be an opportunity to build a purpose-driven economy.

If you are a social entrepreneur or work with a social enterprise that could use help, please visit: https://www.covidcap.com/

From https://www.weforum.org/reports/covid-social-entrepreneurs-alliance/covid-response-alliance-for-social-entrepreneurs:

COVID Response Alliance for Social Entrepreneurs

“Social entrepreneurs are battling at the forefront of this pandemic to serve the most vulnerable populations using their ingenuity to confront the problems on the ground. This Alliance will support them with their mission at a time when they are needed more than ever”

— Hilde Schwab, Co-Founder & Chairperson, Schwab Foundation for Social Entrepreneurship

1. What is the COVID Response Alliance for Social Entrepreneurs?

The COVID Response Alliance for Social Entrepreneurs is an unprecedented collaboration between over 40 global organizations to support social entrepreneurs in pooling knowledge, experience, and responses to alleviate suffering and advance new models of change for a more inclusive, equitable, and sustainable world.

2. Why support social entrepreneurs?

The Alliance represents a network of over 15,000 social entrepreneurs, who have impacted the lives of 1.5 billion people cumulatively, working in over 190 countries: protecting livelihoods, mitigating millions of tonnes of CO2, improving access to health, sanitation, education, and energy, driven social inclusion movements for the disabled, homeless, or those with refugee status.

From providing access to food & water to developing mobile community tracing initiatives, the work of social entrepreneurs is even more critical during the COVID-19 pandemic, as they reach those who the market and governments are unable to account for. Social entrepreneurs need our support to continue making the world a better place for us all.

“The COVID19 pandemic is disproportionately impacting the most vulnerable. As we witnessed during the West African Ebola outbreak, viruses exacerbate inequality by making it more challenging for families to access primary healthcare and education, put food on the table, or maintain their livelihood. To strengthen the systems that protect vulnerable communities from the shocks of a pandemic, we must work together across sectors and geographies. Last Mile Health is proud to a member of this dynamic community of social entrepreneurs working to not only respond to this pandemic, but prevent it from happening again.”

— Raj Panjabi, CEO & Founder, Last Mile Health

3. How will this Alliance help social entrepreneurs?

The Alliance will coordinate support for social entrepreneurs in four key ways:

1. Assess and highlight needs across the members’ social enterprise portfolios.

2. Amplify and expand available financial support under a joint alliance dashboard and help social entrepreneurs to raise additional money to expand their work.

3. Coordinate non-financial support provided by companies and intermediaries, such as social procurement, legal services, and technological support.

4. Advance joint communication efforts to advocate for appropriate fiscal and policy interventions relevant to social entrepreneurs.

4. Who is a member of this Alliance?

Aavishkaar Group, Acumen, Africa Venture Philanthropy Alliance (AVPA), Aspen Network of Development Entrepreneurs (ANDE), Ashoka, Asian Venture Philanthropy Network (AVPN), B Lab, Bertelsmann Group/Stiftung, CASE at Duke University, Catalyst 2030, Co-Impact, Draper Richards Kaplan Foundation, Echoing Green, European Venture Philanthropy Association (EVPA), Fundación Avina, GHR Foundation, Global Innovation Fund, Global Steering Group for Impact Investing (GSG), Global Impact Investing Network (GIIN), Greenwood Place, IKEA Foundation, IKEA Social Entrepreneurship, Impact Hub, Johnson & Johnson, KIVA, LatImpacto, Lex Mundi Pro Bono Foundation, Mercy Corps Ventures, Motsepe Foundation, NESsT, Nonprofit Finance Fund (NFF), Rippleworks, Root Capital, Salesforce.org, SAP, Schwab Foundation, Skoll Foundation, USAID Center for Innovation and Impact (CII), Yunus Social Business (and more!)

5. How can I support social entrepreneurs?

1. Share the word (using the press release here) and support the Alliance using #COVIDAllianceforSocEnts on social media.

2. Share stories of the social entrepreneur communities on social media using #TogetherwithSocEnts.

3. Contribute to the covidcap.com, a searchable website to help any entrepreneur in the world struggling due to the economic impacts of COVID-19, to locate cash relief resources in their community.

4. To offer any other forms of support, please get in touch with us here.