Could Competition Be On The Way For BTU and College Station Utilities?

Texas Governor Greg Abbott has been touring Texas promoting his “Keep Texas Affordable” plan. Most stops have discussed affordable housing prices, but today he discussed electricity services. Specifically, municipalities that don’t allow for choice when it comes to electric providers.

Abbott says more than five million Texans reside in areas with a single municipal power provider, eliminating the possibility of shopping for cheaper electricity rates. 60% of those 5-million are in Austin (Austin Energy) and San Antonio (City Public Service/CPS Energy).

Those are the two largest municipally-owned utility districts in the state, but Governor Abbott is suggesting that all Texans should be able to choose their plan and open up city monopolies to retail electric competition.

He says residential customers in Austin and San Antonio would save an average of 10% to 13% on their electric bill. Commercial customers could save on nearly 22% — or up to $3,000 per year.

Governor Abbott would also ban city utilities from imposing charges upon customer unrelated to electric delivery.

The Public Utility Commission of Texas (PUCT) “only has jurisdiction over the rates charged by transmission and distribution utilities and investor-owned utilities that operate in Texas’ competitive marketplace,” according to puc.texas.gov. For example, Retail Electric Providers (REPs) can charge a maximum late fee of 5% of an unpaid electric bill while city-owned providers can set their own rates.

For comparison sake, CPS Energy in San Antonio charges a 2% late fee. Austin Energy assesses a 5% late fee. BTU charges a 5% late fee. College Station Utilities charges a whopping 10%.

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