SAN ANTONIO – Gov. Greg Abbott has announced a plan to change the energy landscape in San Antonio, saying his goal is to bring prices down for consumers.
The plan is to ban so-called energy monopolies between cities like San Antonio and municipally-owned utility districts like CPS Energy.
Abbott’s office said more than 5 million Texans live in areas with just one municipal power provider with no option to shop around for cheaper electricity rates.
Of those 5 million, the office said more than 60% are served by Austin’s and San Antonio’s electric utilities.
Abbott’s plan would allow Texans to choose their electricity provider by opening city monopolies to retail electric competition.
“Governor Abbott’s plan will give Texans the ability to choose their electricity provider and prohibit utility charges from being used as a slush fund, helping Texans save more of their hard-earned money,” said Gov. Abbott press secretary Eduardo Leal.
According to the proposed plan, residential ratepayers in Austin and San Antonio would save on average 10% and 13%, respectively, on their electric bills.
The proposal said affected commercial ratepayers, including small businesses, could save 20% on average on their electricity bills. Savings could add up to $3,000 per year.
In Tuesday’s press conference, Abbott pointed to cities like Dallas and Houston, which already have diversified energy choices.
“All consumers in the City of San Antonio would be able to do what other people in Texas are able to do, which is do a Google search for retail electric provider and find a lower rate than currently provided by CPS. That in turn would make CPS be competitive on a price point,” Abbott said.
Abbott said this is not the first time he’s tried to get a bill like this passed.
“We’ve tried it before and have not gotten enough votes to get it done. This is legislation that’s been brought up before. It’s time we get it across the finish line,” he said.
Abbott’s plan would also ban city utilities from imposing charges on ratepayers unrelated to electric delivery and prohibit using utility profits as a city slush fund.
CPS Energy sent KSAT a statement in response to the governor’s announcement, saying:
“CPS Energy consistently maintains the lowest combined electric and gas residential rates in Texas and high reliability, including compared to investor-owned utilities.
As an organization that is owned and operated by Texans, our success supports regional jobs, energy resiliency, small businesses, customer assistance programs, and strengthens both the state grid and economy. Any threat to the not-for-profit municipal model is a threat to all customers.
Our returns benefit the community, with the investment going to our customers rather than private investors. We welcome the opportunity to have conversations about this once a proposal is shared.”
CPS Energy
City of San Antonio City Manager Erik Walsh also sent KSAT a statement, saying:
“The current municipally-owned utility (MOU) model has benefited our community and the State of Texas for more than 80 years and is an integral part of supporting the statewide electrical grid. CPS Energy revenues benefit our community by providing the funding for basic city services, including public safety, infrastructure, parks and libraries.
CPS Energy’s residential rates continue to be among the lowest in the state. The City and CPS Energy will work together with stakeholders and our local delegation to communicate the benefits to our community and the City’s responsible stewardship of our utility.”
City of San Antonio City Manager Erik Walsh
Abbott is currently running for reelection against Democrat Gina Hinojosa. KSAT has also reached out for Hinojosa’s office for comment on how to tackle energy prices in Texas.
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