Only a handful of major Texas metros are forced to use city-owned electric providers. San Antonio, Austin and Brownsville are among them, but Texas Gov. Greg Abbott is now vying to take on these municipal “monopolies.” But locals are split on the matter.
Abbott vowed to make a legislative push next year to break up local markets and introduce private power producers to San Antonio. He expressed frustration that CPS Energy’s service area exceeds San Antonio’s city limits, yet 14% of the agency’s gross revenue funds nearly 30% of the city’s general fund budget.
In a nutshell, he’s arguing that counties – and even those in rural areas outside the county line – shouldn’t fund city services. There are state laws that bar public utilities from making excessive profits. But the mechanism for challenging this is tedious and shrouded in legalese.
“This is taxation through electricity prices without representation, and it must come to an end,” Abbott said from a deck in the backyard of a Northeast Side home in San Antonio.
But what would a diversified electric market mean for San Antonio residents? The data doesn’t look great for prices, but there are certainly strong opinions on both sides.
Supporters of Abott’s efforts say more options mean competitive pricing. Some who have moved to San Antonio from other parts of Texas – as most major cities in the Lone Star State have some form of diversified utility market – say competition led to incentive offers and potential deals.
“I lived in other counties in Texas, and it was much better to have a choice. They had to compete for your business and offered a lot of incentives and discounts,” Jason B. told MySA.
But without private power-generation infrastructure already in place in San Antonio, aside from relatively small renewable energy producers contracting with CPS Energy, it’s more likely that any private companies would simply buy the same electricity and raise prices for profit.
And Jasper Graham, who has been deeply invested in the energy market after experiencing both sides of the electric supply coin, says the deceptively low prices displayed by private companies aren’t entirely truthful. Much like internet or telephone companies, hidden service fees or mysterious add-ons creep onto bills.
Graham developed a website opposing Abbott’s efforts, Protect Our Power, which showcases the countless hours he’s clearly dedicated to researching and comparing open-market prices against municipal “monopolies.” When asked, he found it difficult to identify any upside to bringing in private power producers. However, he did say the first year might be great for shoppers as new companies attempt to lure customers before upping the rates.
His sentiments were echoed by most locals who weighed in on a MySA post about the matter. A lack of oversight, the massive impact on the San Antonio budget and allegedly predatory business practices were all strong sticking points for the opposition to Abbott’s big plans.
“Private, for profit ventures will take our money to line someone else’s pocket. With the city owned utility, the money is used to fund our city, benefiting us all rather than just private investors,” Wendey Meuller said.