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Further Electrical Grid De-regulation

1,928 Views | 22 Replies | Last: 1 mo ago by OGAG
OGAG
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https://www.kxan.com/news/texas/governor-abbott-proposes-ending-austin-energys-monopoly-as-power-provider/

I'm curious how people feel about Abbot targeting the de-regulation of Municipal Utilities. I know he is aiming at San Antonio and Austin, but this will affect both Bryan and College Station.

I'm skeptical that the retail options will actually save any money, I don't how the % going to the cities can be greater than the profits a private company will be taking.
aggiepaintrain
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AG
all for it
reineraggie09
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AG
In Navasota and wish I had more options. Have Entergy and would love MidSouth
OGAG
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That won't change. This only affects who you buy power from. The wires will stick with whoever owns them. Your provider will send a cut to the wire owner.
ElephantRider
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AG
OGAG said:

That won't change. This only affects who you buy power from. The wires will stick with whoever owns them. Your provider will send a cut to the wire owner.


Not for him, he's buying directly from Entergy. Entergy is not part of ERCOT and is on a totally different grid.
Benny the Jet Rodriguez
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AG
ElephantRider said:

OGAG said:

That won't change. This only affects who you buy power from. The wires will stick with whoever owns them. Your provider will send a cut to the wire owner.


Not for him, he's buying directly from Entergy. Entergy is not part of ERCOT and is on a totally different grid.

And cheaper than the deregulated market.
agnerd
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AG
City of Bryan charges $11.00/mo + 10.97 cents/kwh

Cheapest 12 month flat rate plan available in Houston right now is $4.90/month + 10.5 cents/kwh with $240 cancellation fee for canceling before your 12 month fee is up.

You can stay a little cheaper than the City price, but you have to remember to change providers every year or they will switch to a plan with a much higher rate and all your savings will vanish with the first bill. Energy companies make a lot of money this way.

So BTU charges you about $10 a month to avoid the cancellation fees and not have to find a new plan every year. I'd slightly prefer the BTU model since its only very minor savings to avoid a lot of hidden fees and extra work.
ElephantRider
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AG
I've had retail in the past and I prefer BTU now
EBrazosAg
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AG
I've backed BTU for a long time. The net metering fiasco for solar panel owners (not me) and the tens of millions of dollars annually that they transfer to the CoB general fund instead of rebating customers in the city and county (me) has me thinking about not being a backer…….
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
EFR
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Do you think a private company is going to rebate those millions of dollars?
techno-ag
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AG
OGAG said:

https://www.kxan.com/news/texas/governor-abbott-proposes-ending-austin-energys-monopoly-as-power-provider/

I'm curious how people feel about Abbot targeting the de-regulation of Municipal Utilities. I know he is aiming at San Antonio and Austin, but this will affect both Bryan and College Station.

I'm skeptical that the retail options will actually save any money, I don't how the % going to the cities can be greater than the profits a private company will be taking.
If I understand correctly there is also talk about doing away with surcharges that go into the city's general fund like C-STAT does.
The left cannot kill the Spirit of Charlie Kirk.
CaptTex
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AG
Sounds like costs and a changing landscape for traders/generator operators has them lobbying for large portions of the market which was previously harder to enter. Granted I'm sure there is some truth to misuse of funds to prop up inefficient and inept municipal governments. Make no mistake, this is about the chance for the big dogs to get their hands on that revenue.
OGAG
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Yes, but BTU and CSU will still own all the transmission and distribution in their areas. Every city in the state gets a cut from the electric utilities through fees, easement, taxes etc. Centerpoint pays Houston over 100 million a year, the city is gonna get money
EBrazosAg
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AG
That is not relevant to my point. I have no idea what the margin difference would be. But I know that rates could be 8% lower if BTU didn't pass the dollars to CoB. That's taxing me without representation. If they want to do that - I'm all for letting a private company compete for my business and Bobby G can pay more than 1$ to graze his longhorns.
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
Boozer92
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AG
I have a few locations in deregulated markets. Oncore owns the wires. They charge 6.12 per kwh. That is before you pay for electricity and is not a charge you have any control over. Once you add your electrical costs it will very likely be much higher than BTU. BTU is my favorite provider on both cost and reliability. Deregulated and co ops locations seem to be a coin toss depending on the co op.

I don't have any bills from college Station utilities to compare but I would guess they are similar to the unregulated areas
EBrazosAg
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AG
I think that 90% of the population is for deregulation because of the supposed savings. Seems that is tenuous at best - which calls into question how the transmission rates are decided and regulated…. But I get it. I'm in the other 10% that just doesn't think it's a government thing - maybe libertarian light ? Dunno. But municipal utilities just don't make sense in 2026. In 1935 or 40, they probably did.
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
techno-ag
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AG
OGAG said:

Yes, but BTU and CSU will still own all the transmission and distribution in their areas. Every city in the state gets a cut from the electric utilities through fees, easement, taxes etc. Centerpoint pays Houston over 100 million a year, the city is gonna get money

I'm talking about the additional that CSU charges and drops into their general fund. It's a hidden tax originally approved so that renters could help contribute to city coffers.
The left cannot kill the Spirit of Charlie Kirk.
OGAG
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I'm just pointing out the city will still be getting money from electric bills
EFR
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I am all for deregulation when it adds efficiency to a market. All this really does is add a middleman to the transaction, definitely not adding efficiency. When you talk to folks in Houston they may save a couple of bucks here and there, but in order to do that you have to be on the hunt for the lowest rate/plan. Your time is worth more than the small amount you may save. If you look way back you will see that one of the biggest proponents of electrical deregulation was Enron, simply as a way for them to make money, not to provide a better service or more efficient market. If you don't like how your municipal power company/coop is run get involved with the governing bodies and work to improve them.
flyguysr5
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Is the deregulated cost per KWH fixed or does it change based on demand periods? Is there a limit to the increase? Seem to remember people complaining of outrageous fees awhile back during a cold spell?
Lone Stranger
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YOU get to choose when you pick a provider if you want any of those structures or not. You have to be a more knowledgeable customer in a dereg environment. In a regulated market, pretty much everyone in the same rate class gets only one choice on price and how you buy it. In a dereg market there are lots of choices not only on price but how you want buy it (time of day, year, etc, etc.). Some people like simple...others like being able to choose a structure they can potentially do better on. What it does do is introduce potential for savings but also more risk potential from picking a structure that you can't meet the contractural requirements of.

BTU has been the poster child over the last 30 years for why muni's can work really, really well. CSU not so much.
ElephantRider
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AG
flyguysr5 said:

Is the deregulated cost per KWH fixed or does it change based on demand periods? Is there a limit to the increase? Seem to remember people complaining of outrageous fees awhile back during a cold spell?

I was on retail during Snowmageddon, but luckily I had a fixed rate contract. My neighbor had a contract that tracked with market rate, and his bill was outrageous.
OGAG
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You may be remembering "Griddy" that let you buy at the current 5 minute "market" price. Those kinds of plans are banned
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