Or subscribe directly via RSS feed
Click above to enjoy the Deceleration Podcast. Or join us at Apple Podcasts, iHeart, Amazon Music, Goodpods, or a dozen other platforms.
Governor Greg Abbott wants to deregulate Texas city-owned utilities and hand their markets over to private shareholders. We break down what's at stake for Austin, San Antonio, and roughly 70 other municipalities.
Abbott's campaign promises San Antonio households would save 13 percent on their power bills—but there's no data to back up the claim.
Research and recent reporting suggest his plan to force Texas city-owned utilities into the deregulated market is unlikely to lower anyone's bills. What it would definitely do is strip cities of a major revenue source—money Abbott's campaign brands a "slush fund."
The risk of his proposal is real, especially as an economic abyss opens beneath millions of Texans. Costs for basic necessities rise while federal and state supports disappear. Meanwhile, San Antonio and Austin utilities—notably CPS Energy and Austin Energy—deliver hundreds of millions to their cities' general funds, supporting everything from parks to after-school programs.
So we spoke to researchers, organizers, and city leaders about the potential impact.
The 'Financialization' of Electricity
Decades after deregulation began dismantling centralized utility models across the country, the financial system has intensified its grip on every aspect of our lives. Conor Harrison writes about this phenomenon in his new book, Brokers of Power: The Financialization of the US Electricity System.
Deregulation has not only not reduced bills, the 'financialization' of power is also delaying climate solutions.
These profit forces, more than local controls or even state or national policy, now most influence our transition toward less planet-combusting energy sources, Harrison argues.
Guests:
- Conor Harrison, author of 'Brokers of Power: The Financialization of the US Electricity System'
- DeeDee Belmares, climate justice organizer with Public Citizen
- Councilmember Mike Siegel, Austin City Council (D7)
Community Reforms Delayed
Climate justice organizer DeeDee Belmares doesn't regret the pain Abbott's proposal is causing local utility board members—many of whom have resisted community-led reforms for years. But she steers clear of endorsing deregulation.
In spite of their shortcomings (including backing off on their climate commitments) critical programs meeting the needs of working Texans have taken root in CPS Energy, she said. Programs that aren't being replicated in the same way in the competitive market in Texas.
'Cynical' Tactics
Austin City Council Member Mike Siegel frames Abbott's pitch as something more menacing: a sustained Republican agenda to erode public confidence in government itself, create political apathy, and (ultimately) aid the rise of authoritarianism.
"These are attacks on democracy itself, right? These folks want to decrease confidence in government, whether that's federal, state, or local," Siegel said.
"They want us to be cynical. They want us to disbelieve the government can do good things.
Bottom Line for Ratepayers
Lubbock offers a cautionary tale. The city joined the deregulated market in 2002—now it has the highest average electric bills in the state. Meanwhile, Winter Storm Uri exposed the fragility of competitive generation markets, leaving some Griddy customers, as Harrison reminds here, with bills into the thousands of dollars and cities like San Antonio on the hook for hundreds of millions.