A big electric company claims a capacity market in Texas would be worth it. But at a cost of nearly $5 billion annually to consumers, the question might be asked: worth it for whom?
The purpose of a capacity market is to INCREASE energy costs. By their very design, capacity markets contribute to higher prices.
In a proposal that has been roundly rejected by organizations across the political spectrum, the owners of Texas power plants would receive subsidies based on the number and size of plants they own.
As much as $2.3 billion annually. That’s how much Texans can expect to pay in additional energy costs if policymakers adopt a plan to subsidize the state’s powerful electric generation companies.
Deregulated Electricity in Texas: A History of Retail Competition also reveals that Texans in deregulated areas consistently have paid more for power than Texans outside deregulation. It shows that many big electric companies — after spending years arguing against market intervention — now clamor for price supports.