Texas Senator: Legislature Chose Energy-Only for "Good Reason", PUCT Not Intended to Have "Unprecedented Power" to Impose Taxes and Subsidies

"Having been present since day one of the current market structure, I can assure you that the legislature designed the energy only market for good reason," Texas State Senator Troy Fraser said in a November 13 letter to Donna Nelson, Chair of the Public Utility Commission of Texas

"Never was it intended for the PUC to possess the statutory authority to change the fundamental design of the market," Fraser said. "It certainly was not envisioned the law would give the agency unprecedented power to do whatever they wanted under the pretext of ensuring 'resource adequacy,'" Fraser wrote.

"The Commission's recent actions seem to have been fueled by the abnormally high temperatures in the summer of 2011, which are now being used as leverage to encourage a move from a highly competitive energy only market to one that imposes government mandates, taxes, and subsidies with no guarantee that additional generation will be built or rolling blackouts prevented," Fraser said.

"Experts have said that a proposed plan of a forward capacity market may cost Texas consumers an estimated $4 billion per year in additional costs on their utility bills. As the duly elected representative of over 800,000 constituents, I cannot justify a potential rate hike of this magnitude imposed upon them by an appointed board, unaccountable to the voters," Fraser said.

"Today I am requesting that the PUC not take any further action that would result in changes to the fundamental design of the Texas market before the appropriate legislative bodies have had the opportunity to provide clear guidance in the form of instruction or statute," Fraser said.