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On 2026-08-05 Gov. Greg Abbott proposed extending deregulation to municipal…

2026-08-05 · 17:34 UTC ·@fredstaffordcs ·1 min read

Brief

Fred Stafford (@fredstaffordcs) warns Gov. Abbott's 2026 push to deregulate municipal utilities would erase the 1990s carve-out and pressure cities like Austin and San Antonio—majority owners of the South Texas Nuclear Project—to sell generation. Stafford argues retail choice would undermine financing for new large plants, despite Abbott claiming 10% and 13% bill cuts.

Why it matters

On 2026-08-05 Gov. Greg Abbott proposed extending deregulation to municipal utilities, undoing the 1990s carve-out that had kept them outside Texas retail choice.

Key details

  • Austin and San Antonio jointly own a majority stake in the South Texas Nuclear Project; Stafford warns deregulation would likely force sale of generation assets and make financing new large plants infeasible because retail-choice customers can flee long-term investments.
  • KXAN quoted Abbott claiming deregulation would raise competition and cut average residential bills by 10% in Austin and 13% in San Antonio; Stafford ties the same financing concern to the proposed public-power takeover of IOU Central Hudson in NY and notes advocates have been silent.
Source evidence

🚨 Red alert for the carve-out from deregulation that municipal utilities in Texas got in the 90s: Abbott wants to deregulate them too. Will the antimonopoly left say "huzzah for busting monopolies and promoting competition" or "fuck off with deregulation"?

Note that Austin and San Antonio, for example, together own a majority of the South Texas Nuclear Project plant. If they're deregulated then they're likely going to sell off generation resources like that, and won't be able to help finance new big ones.

Same problem that public power takeover of IOU Central Hudson in NY would face, which advocates have been mum about: if customers have retail choice, then it's harder to finance investments because people can flee to retail suppliers uninterested in said investments.

KXAN News (@KXAN_News)

Abbott said the move would increase competition and that average residential ratepayers would save 10% on their utility bills in Austin and 13% in San Antonio. kxan.com/news/texas/governor…

— https://nitter.net/KXAN_News/status/2085006669927362657#m