Overview
- Gov. Greg Abbott announced the proposal Tuesday and said he will ask the 2027 Legislature to end municipal exclusivity so city utilities must sell in Texas’ competitive retail market.
- The governor asserted residents in Austin and San Antonio could see roughly 10% and 13% average bill reductions, but he has not published the data or method behind those estimates and his office referred questions to campaign channels.
- Austin and San Antonio leaders, Austin Energy, CPS Energy and the Texas Public Power Association sharply disputed the savings claim, arguing municipal utilities often have lower residential rates, better reliability and that conversion would be technically complex and costly.
- City budgets rely heavily on utility revenue transfers — Austin projects its utility will account for about 30% of next year’s revenue and transfer roughly $205 million while CPS Energy gave San Antonio more than $500 million last year — revenue officials say pays for police, parks and senior programs.
- The measure would require new state law and is expected to prompt legislative fights and possible lawsuits, with the Lubbock Power & Light move into ERCOT in 2024 cited as evidence that competition does not always lower residential bills.