By R.A. Dyer
radyer@star-telegram.com
Published: 06-10-08
AUSTIN — Texas regulators should divert money earmarked for energy efficiency programs and use it to help ratepayers who suddenly face astronomical bills because their electric companies have gone belly-up state Rep. Phil King says.
In a letter to the state’s top utility regulator King who chairs the House Committee on Regulated Industries noted many customers involuntarily switched to high-cost default providers because of recent company failures won’t be able to bear the financial strain.
“Given that a customer who is charged such high rates in this situation will be unlikely to give the competitive market another chance it is imperative that we aggressively evaluate all avenues to provide these customers some protections” said King R-Weatherford in a June 6 letter to Public Utility Commission chairman Barry Smitherman.
King also has called a hearing this month of his utility oversight committee. His actions come amid nearly unprecedented price spikes in the state’s wholesale power market several failures of Texas electric retailers that depend on wholesale energy and the involuntary transfer of their customers to high-cost default providers.
Many of those customers could see their bills increase by 100 percent or more according to the PUC. Many face charges for “out-of-cycle” meter reads if they want to switch to another company. And customers who don’t switch can still face high deposits charged by the default companies.
At least 35000 Texans have been switched to default providers or others after three electric retailers failed in recent weeks. Another company has gone bankrupt but still operates.
Money maintained by utilities as part of a state energy efficiency program could be temporarily diverted to help those customers King wrote. In 2007 the fund distributed about $73 million to help with home insulation and other efficiency efforts.
Some consumer advocates applaud King’s initiative but say the efficiency money isn’t the right answer.
“That money is desperately needed ... to reduce overall energy use” said Tom Smith director of the Texas office of Public Citizen. “We think it’s a mistake to use the funds to bail out a few thousand customers.”
Mike Renfro PUC director of customer protection said plenty of customers who have already made payments to a failed company now complain they have to pay deposits to “Provider of Last Resort” companies.
“A lady called and said her last bill to National Power was $390 and she didn’t have another $350 for the deposit” Renfro said. “I’ve had to say that you have to pay the deposit or they’ll turn the lights off.”
R.A. Dyer reports from the Star-Telegram’s Austin bureau 512 476-4294.
