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Thu Jun 28, 2012, 02:30 PM

Electricity price cap hike generates consumer backlash

With the Public Utility Commission set to raise price caps on wholesale electricity prices by as much as 50 percent today, consumer outrage is mounting. Petitions like this one are appearing on the Internet, urging the governor to intervene in the case. The PUC seems determined to forge ahead with the plan, which is designed to encourage the construction of more generating plants, even though it hasn’t assessed the economic impact on consumers or on electricity retailers.

Of course, we already know the answer. Deregulation, as enacted in Texas, has created a situation in which we must now choose between reliability or higher prices. The stakes are high. Given this week’s warm temperatures, generating capacity was already pushed near its limits this week, raising new prospects of blackouts as we head toward peak usage times in August.

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Reply Electricity price cap hike generates consumer backlash (Original post)
white cloud Jun 2012 OP
sonias Jun 2012 #1
snot Jun 2012 #2
ashling Jun 2012 #3

Response to white cloud (Original post)

Thu Jun 28, 2012, 04:12 PM

1. Choice between reliability or higher prices

Yes this is what deregulation brought us. Would you like AC with that 112 degree weather, Texas? Well it's going to cost you - big time.

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Response to white cloud (Original post)

Thu Jun 28, 2012, 05:01 PM

2. Did you see this?

From jmasterson at http://www.democraticunderground.com/10782862 :

Why Does TXU Want Texas to Raise the Price Cap on the Electricity it Buys?
From the Dallas Observer

Here's a question for all you MBAs in Unfair Park Land: Why would an independent retailer operating in a free, deregulated market want the state to take steps to suddenly raise the retailer's costs?
For example, say you own a mom-and-pop store that sells tomatoes. The government suddenly wants to increase how much you pay for your tomatoes. You won't see any more profit as you pass the higher price on to your annoyed customers. Do you go ahead and tell the state, "Hey, great idea"?

We ask because that seems to be what North Texas electricity retailer TXU did as the Texas Public Utility Commission contemplates a rule change that, as of August 1, would sharply increase the top price electric generators can charge retailers during times of peak demand -- during the dog days of summer, chiefly.


This move by the PUC is going to result in electricity rates going up in Texas.


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Response to snot (Reply #2)

Sat Jun 30, 2012, 05:33 PM

3. And yet Republicans think the answer is

more de-regulation. .

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