SAN ANTONIO – Texas Gov. Greg Abbott on Tuesday announced a plan aimed at opening parts of Texas’ electricity market to competition in cities served by municipally owned utilities, including San Antonio, where CPS Energy provides electric and gas service. In remarks previewing the proposal, Abbott described municipally owned utilities as “energy monopolies” and argued their structure can prevent customers from shopping for lower rates.
Abbott also criticized what he called a “tax through electricity prices,” referring to the practice in some cities where a portion of utility revenue is transferred to local governments to support public services. In San Antonio, CPS Energy’s revenue transfers have long been a significant source of funding for the city budget. Supporters of municipally owned utilities say those transfers help pay for local services while allowing local control of the electric system. Critics argue the structure can raise costs and reduce consumer choice.
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