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Texas heat sends energy bills soaring

A window thermometer reads 100 degrees during a heat wave

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TEXT OF STORY

Steve Chiotakis: If you think you're dealing with a long, hot summer, try this number on for size: "57." That's how many days the temperature's climbed above 100 degrees in San Antonio, Texas, this year. And that record-breaking heatwave is cooking up some high-energy bills. From Texas Public Radio, David Martin Davies reports.


David Martin Davies: In Texas, the summer of 2009 will be remembered for high temperatures and high-power bills.

RANDY CHAPMAN: We're seeing record prices largely because of high consumption with people having to run the air conditioners just to keep cool. Sometimes 24 hours a day.

Randy Chapman of the Texas Legal Services Center says many of the state's power plants burn natural gas and now natural gas is cheap. So then why are Texas energy bills so expensive?

TERRY HADLEY: It's a little like the weather, the climate is not exactly the same all over Texas and nether are electricity prices.

That's Terry Hadley, of the Texas Public Utility Commission. He says the power grid in cities like Houston and Dallas are unregulated, and competition drives down prices.

But Austin and San Antonio are still regulated. Regulation was a good thing last year when natural prices were high. But during this hot summer customers are stuck with soaring bills. Randy Chapman says 10 percent of Texas consumers are behind on their power bills.

In San Antonio I'm David Martin Davies for Marketplace.

Hal Horvath (findingourdream.blogspot.com)'s picture
Hal Horvath (fi... - Aug 27, 2009

This was interesting, since I live on the edge of Austin, and have shopped for electice rates/plans a few times, and actually know how many KwH/day I use, etc. etc. etc.

So...I used whitefence.com to check on the factual accuracy of this story using actual addresses of people I know in Texas...friends and family...

I found the story does not correlate to the results from Whitefence.

Yes, in Austin, choices are less broad, but....rates are not much difference from near Houston, etc. For instance, right now while natural gas prices are at rock bottom: 11 cents vs. 10.8 cents for variable rates (not long term locked). That's not much difference!

Hmmmm....

So, the story is more an *idea* than a reality.

Not saying competition is a bad thing! Just saying, the *idea* isn't aligning with actual numbers.