Austin Energy – the 9th largest community-owned electric utility – has requested proposals for up to 200MW of high cost renewable power, increasing its already large demand for renewable power; and like its other renewable energy proposals, consumers in Austin have no choice but to pay for it.
According to an article in Recharge, Austin Energy has sought proposals for energy from renewable companies, leading to high-cost proposals. They have received roughly 100 proposals, including high cost proposals such as off-shore wind. These proposals are consistent with Austin Energy’s expansive push to use renewable energy.
Austin American Statesman reports that Austin Energy will likely need to collect 35% more revenue by 2020. Those numbers do not include this recent proposal for 200 more MWs of renewable power. Austin Energy even admits that this push for more renewable energy will directly cause an increase in consumer prices.
Rising consumer prices in Austin are the direct opposite of the results seen by the competitive areas of the Texas electricity market. In our Sunset Report on the Texas Public Utility Commission, we noted that prices in Texas are lower now than under a regulated market. In fact, average competitive prices today are almost 10% below average 2001 regulated prices, and the lowest average price is over 30% lower.
The State of Texas should listen to consumers and push for legislation – like SB 940 from the 81st Regular Session – that would increase competition; eventually to all of the areas of ERCOT and alleviate the increasing costs to consumers.
-Ryan Brannan