June 28, 2012
For Immediate Release
The Texas Public Utility Commission on June 28th voted to increase the system wide offer cap in the state’s wholesale electricity market by 50 percent — from $3,000 per megawatt-hour, to $4,500 per megawatt-hour. This increase will take effect August 1st. The following statement about that PUC decision can be attributed to TCAP Board President Jay Doegey.
“While our coalition appreciates the difficulty of this issue, we share the concern of many that the Public Utility Commission first should have conducted a substantive analysis of consumer costs. By increasing the system wide offer cap, the PUC is promoting higher wholesale energy prices. No one knows how much this will cost Texas, or even whether it will result in more generation coming online. But one outcome seems likely: Texas consumers will end up paying more.
We applaud the PUC for its continuing efforts to encourage energy conservation and for its exploration of other potentially low-cost strategies to reduce electric demand, especially during peak hours. A well-functioning electric market requires both reliable service and affordable rates. Our coalition believes that the consideration of both must be part of any strategy to address the state’s long-term energy needs.”
Contact R.A. “Jake” Dyer
Phone: (512) 322-5898
TCAP is a coalition of more than 160 cities and other political subdivisions that purchase electricity in the deregulated market for their own governmental use. Because high energy costs can impact municipal budgets and the ability to fund essential services, TCAP, as part of its mission, actively promotes affordable energy policies. High energy prices also place a burden on local businesses and home consumers.