The problem, according to Abbott: He noted that over 5M Texans (mostly in Austin and San Antonio) can only access a single municipal power provider “and cannot shop around for cheaper electricity rates.” But by enabling retail electric competition, he claims ratepayer bills could drop 10% in Austin and 13% in San Antonio, on average. Meanwhile, commercial customers could save almost 22%.
The plan: The governor is proposing legislation to open city monopolies and allow residents to choose their provider. (Abbott has previously tried to pass similar legislation.) He also wants to ban city utilities from collecting charges "unrelated to electricity delivery" and “prohibit using utility profits as a city slush fund."
The utility response? City-run Austin Energy and CPS Energy oppose Abbott’s plan—they claim it would increase households’ energy costs. CPS said it maintains the state’s lowest combined electric and gas residential rates, while Austin Energy said it offers ERCOT’s lowest residential electric bills (and ranks above the state reliability average). “The Governor’s proposal could actually increase Texans’ bills, while reducing the level of customer service they currently receive,” The Texas Public Power Association told KXAN.
Wed, Aug 5
NEWS: Texas Gov. Greg Abbott wants to break up city energy ‘monopolies’—and municipal utilities are pushing back.
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