Houston Chronicle by Allen Johnson April 17, 2019
It has been 20 years since the Texas Legislature moved to end regulated energy rates and break up monopolies. Texas now has twice the energy production of any other state, and electric prices are among the nation’s lowest. Unfortunately, House Committee on State Affairs Chairman Dade Phelan, R-Beaumont, is attempting to set the clock back with his bill, House Bill 3995.
This legislation would prevent rates from being lowered even further by stifling competition for energy transmission and requiring any non-incumbent energy company to seek permission from the state before it could offer services in Texas. This bill is clearly designed to protect incumbent energy companies at the expense of consumers.
HB 3995 would not only apply to any future transmission contracts, it would overturn a competitively awarded transmission contract if it takes effect immediately, which would occur if it was passed by a supermajority of the Legislature. Rather than receiving the lower prices that would be provided by the winning bidder, consumers would be stuck with the current transmission company, which lost the bid. This is plain and obvious corporate welfare. In a regulated energy market, it is extremely difficult to attract investment, because incumbent energy producers have an enormous amount of political power. Incumbent utilities often overspend by billions of dollars on their infrastructure projects, leaving ratepayers to foot the bill for unnecessary costs. However, when competition is introduced, it brings more cost discipline as companies bid against one another.
More:
https://www.houstonchronicle.com/opinion/outlook/article/Counterpoint-Competition-among-utilities-would-13776047.php
