<\/p>\n
Austin Energy workers restore power to a northwest Austin neighborhood in 2023. State Rep. Ellen Troxclair, a former Austin City Council member, says municipally owned utilities have strayed from being a bargain.<\/p>\n
Jay Janner \/ American-Statesman<\/p>\n
A lot has changed since 2002 when Texas opened its electricity market to competition.<\/p>\n
<\/p>\n
Our economy has grown to $2.9 trillion. Texas\u2019 population has jumped to 32 million.<\/p>\n
Article continues below this ad<\/p>\n
But the Texas economic miracle couldn\u2019t have happened without reliable and affordable electricity produced by the state’s competitive power market.<\/p>\n
In 1999, Gov. George W. Bush signed SB7 opening retail electric competition to the ERCOT market covering most of Texas. Prudently, SB7 developed the market gradually so customers, providers, generators and regulators could learn as it matured.<\/p>\n
We\u2019ve made reforms along the way, including those after Winter Storm\u00a0Uri. That\u2019s what state government should do to maintain a robust market: Set sensible, fair guardrails and then get out of the way to let the market deliver choices to consumers.<\/p>\n
Today, the Texas power market is the envy of the nation with average residential rates that are well below the national average.<\/p>\n
Article continues below this ad<\/p>\n
Most cities and counties are in competitive areas. However, SB7 gave cities with their own monopoly electric utilities the chance to opt out of competition.<\/p>\n
Allowing cities such as Austin, San Antonio, Garland, Denton, Bryan-College Station and others to own and run monopoly utilities may have been a good idea in 2002.\u00a0But no longer.<\/p>\n
ALSO READ:\u00a0If Gov. Abbott wants to lower energy bills, start here<\/a><\/p>\n From my experience on the Austin City Council, I know local governments generally work best when they provide residents with affordable quality services. But municipally owned utilities have strayed from being a bargain. They charge rates so high that millions of dollars are left over by design to funnel to city councils for pet projects unrelated to generating and selling power.<\/p>\n Article continues below this ad<\/p>\n No Texans should be held hostage by monopolies. When local governments become obstacles at this scale to affordably serve their people, action is needed.<\/p>\n That\u2019s why I\u2019m supporting Gov. Greg Abbott\u2019s \u201cKeep Texas Affordable\u201d agenda to lower electricity costs by expanding consumer choice<\/a>.<\/p>\n More than 5 million Texans live in cities with monopoly utilities and can\u2019t shop around for cheaper electricity.<\/p>\n At CPS Energy in San Antonio, the current 12-month average residential rate is 12.9 cents per kilowatt-hour. In competitive areas just outside San Antonio, customers can find rates at 11.9 cents, with introductory offers as low as 6.2 cents.<\/p>\n Article continues below this ad<\/p>\n Austin Energy currently charges an all-in rate of 13.4 cents per kilowatt-hour, while the adjacent competitive average rate for a 12-month term is 12.1 cents, with the lowest at 6.2 cents.<\/p>\n Rates under various providers can rise or fall based on usage, but customers in competitive areas can compare plans and choose the one that best fits their needs. Customers served by municipally owned utilities cannot.<\/p>\n