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Re: [hreg] Fwd: [PAA-Discuss] Shocking truth about electric rates

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  • David Power
    Houston is still dealing with the effects of deregulation. The PUC set an artificially high Price to beat to ensure that there would be enough margin to
    Message 1 of 4 , Jul 6, 2006
      Houston is still dealing with the effects of deregulation. The PUC set an artificially high "Price to beat" to ensure that there would be enough margin to attract new companies to a market that was once a monopoly. Competition is supposed to drive the price to market levels, one of the odd things failed to happen is most of the market stayed with Reliant even though they have higher prices, 80% of the rate payers failed to switch and Reliant had to pay a fine because of it.
      The price to beat goes away Jan 2007, we will have to see if this does encourage lower prices and more competition in the market.
      CPS also spends considerably less on efficiency programs. The state mandate for regulated areas is 10% of new generation needs to be spent on efficiency programs. TXU,CNP and AEP spent over 70 million ( one of the smallest amounts in states that have these programs) CPS spent just over a million. CPS also had the largest rate increase its ever passed just recently, but its still pretty cheep.
      Houston also has a problem with its air quality (duh) so most of its generation is powered by gas, you couldn't get a coal plant permitted any where close to Houston. High gas prices,cleaner air but high electric prices. San Antonio is a near non-attainment area but got a new coal plant permitted and broke ground on it even though the need for the additional generation was in question. They are up for an air quality review in 2007 and if they move into a non attainment status (very likely as they have already exceeded the max number of ozone alert days this year) then they would not have been allowed to build this plant. Coal is currently the cheapest way to generate electricity, TXU has put most of their gas plants up for sale and is looking to build more than 10 new coal plants ( the actual number that will get built is still in question). NRG has announced that they are going to build two new reactors at the nuke plant. All that money has to come from some where.
      One thing Texas has figured out is how to build new power plants and transmission lines.
      ----- Original Message -----
      Sent: Wednesday, July 05, 2006 10:26 PM
      Subject: [hreg] Fwd: [PAA-Discuss] Shocking truth about electric rates

      I knew Austin owned its own electrical system but was not aware San Antonio did too. Have often wondered how their prices compare to our privately owned power sources here in Houston. If this article (forwarded below) is right, it looks like they are much cheaper. Does anyone have other figures?

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