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Texas Gov. Abbot is pushing to deregulate public power utilities that were…

2026-08-06 · 13:39 UTC ·@fredstaffordcs ·1 min read

Brief

Texas Gov. Abbot is proposing deregulation of public power utilities that were exempted from ERCOT restructuring around 2000, including Austin and San Antonio. A chart cited by the author shows those munis have had lower residential prices since 1990 than deregulated Houston and Dallas–Fort Worth; El Paso (an IOU outside ERCOT) also shows lower prices. Data combine EIA averages and BLS surveys and lack place-linked retail-supplier price aggregation.

Why it matters

Texas Gov. Abbot is pushing to deregulate public power utilities that were allowed to remain unrestructured at the turn of the century (~2000), specifically targeting large municipals such as Austin and San Antonio.

Key details

  • A historical chart shows Austin and San Antonio (munis) have kept residential retail prices lower since 1990 than the deregulated markets of Houston and Dallas–Fort Worth; El Paso’s investor-owned utility (outside ERCOT) also reports lower prices.
  • Methodological caveat: the chart combines EIA real average prices for vertically integrated utilities with BLS sampled survey data for Houston and DFW; there is no aggregated, place-linked dataset of actual retail supplier prices, and average retail-provider prices (including delivery) are higher than vertically integrated utilities.
Source evidence

Texas Gov. Abbot wants to deregulate the public power utilities in Texas that were allowed not to be restructured at the turn of the century with all the other utilities within ERCOT. Austin and San Antonio are the largest munis today.

How have residential retail prices for Austin and San Antonio compared to those of other major cities whose utilities were deregulated? As the chart shows, munis have kept prices lower since 1990 compared to the prices paid in Houston and Dallas-Fort Worth. Even the investor-owned utility for El Paso, which sits outside ERCOT and therefore was not compelled to deregulate, has kept its prices lower.

Deregulation means people can choose their own retail supplier of power. Unfortunately there is no data that aggregates the actual prices people are paying these retail suppliers tied to any particular place. (Advocates of retail choice don't seem to mind this econometric gap.) The chart therefore shows real EIA average prices for the vertically integrated utilities but BLS sampled survey data for average prices in Houston and DFW. The average retail provider price, which includes delivery, is higher than the vertically integrated utilities too.