Texas Alliance Of Energy Producers Supports Motion To Launch Pilot Retail Electric Choice Program At SWEPCO

Notes Current "Exceedingly High Electricity Costs"

October 6, 2020

Email This Story
Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

The Texas Alliance of Energy Producers has filed a letter at the Texas PUC in support of East Texas Salt Water Disposal Company's (ETSWD) petition for declaratory order and request for the opening of a pilot retail electric choice implementation project at Southwestern Electric Power Company (SWEPCO)

ETSWD's petition for launch of a retail electric choice pilot at SWEPCO had been exclusively first reported by EnergyChoiceMatters.com in September (see story here)

The Texas Alliance of Energy Producers (Alliance) said that, with over 2,600 members, the Alliance is the largest state oil and gas association in the United States, with members including oil and gas operators/producers, service and drilling companies, royalty owners, and a host of affiliated companies and industries in Texas

"Given the Alliance's vast membership interests in the oil & gas industry, we understand how truly critical a vibrant and healthy industry is to Texas's economic wellbeing, including the reliability of Texas's electric grid. As you well know, electricity costs are one of the largest cost-drivers for Texas oil and gas operators, and that is at the heart of the issue in this docket," the Alliance said

"The oil & gas industry in Texas, and in the East Texas Oil Field in particular, are feeling the economic pressures of lower commodity prices and fierce international competition. Anything that we can do to help reduce operating costs for those producing in East Texas should be pursued to help them remain viable, which will in turn help the entire State of Texas by contributing to the state's economy and generating taxable production and revenues. This docket could be an important first step to helping reduce costs not only for operators in East Texas, but potentially could set the stage for great strides being made in other parts of Texas, as well," the Alliance said

"The proposed pilot project in this docket would give the Commission and customers the opportunity to assess what competitive retail prices and offerings might look like and whether they offer benefits to customers in SWEPCO's territory, including customers in the oil field. We urge your consideration to allow Texans to seek competitive rates. The Alliance believes that, when possible, competitive pricing of electricity will offer better prices to operators who are currently straddled with exceedingly high electricity costs," the Alliance said

"In addition to the clear policy interests the State of Texas has in this issue as outlined above, it is also clear that the Legislature intended for a pilot project to be used in the SWEPCO service territory at some point. We believe ETSWD's petition lays out the legislative intent and legal basis for this pilot project very well, and in the Alliance's view, there is no reason to delay the implementation of a pilot project any further," the Alliance said

"In closing, the Alliance encourages the Commission to open a pilot project as laid out in ETSWD's petition. We ... believe it would be in the oil & gas industry's best interest -- and therefore, Texas's best interest -- to permit this pilot project to move forward," the Alliance said

Docket 51257

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Director of Regulatory Affairs -- Retail Supplier -- Houston
• NEW! -- Energy Pricing Analyst -- Houston
• NEW! -- Retail Energy Account Executive -- Houston
• NEW! -- Sr. Sales Executive -- Retail Supplier
• Energy Systems Analyst -- Retail Supplier