[Watchdogs] Troy Fraser files PEC reform bill on last day to file bills f...

[Merle L. Moden]

Ken:

I have not read the bill, but I'll take your word for it.

As you may recall, Senator Fraser was the one of the original sponsors 
of deregulation of electric generation.  The ostensible purpose was to 
disconnect customers from generation provided by the utility in their 
service areas, and allow for customers to receive electricity generated 
by independent power producers.  The net effect of deregulation has been 
higher overall costs of electricity, rather than the lower costs that 
were promised that would result from more competition.  The real purpose 
for deregulation, of course, was to create economic opportunities for 
investors in these independent power plants.

Little wonder that Senator Fraser's SB 1743 would start to prohibit 
electric cooperatives from acquiring their own conventional generation, 
i.e., natural gas-fired, coal-fired, and nuclear.  It's pretty clear 
that the purposes for this restriction are two-fold. First, electric 
cooperatives must obtain their future generation needs from these 
independent power producers to continue to guarantee them a market for 
their generation.  Second, the last thing that the independent power 
producers want is more available generation, as it is my understanding, 
notwithstanding the brownouts in February, that there is/was a glut of 
independent power producers and some investors lost their shirts.

It's a peculiar form of capitalism.  First, we argue that the 
conventional electric generation market must be opened-up to ensure low 
prices from more competition,  Then, we argue that the conventional 
electric generation market must be closed to electric cooperatives so 
that this market is open only to independent power producers.  Like I 
said, it's a peculiar form of capitalism.

The reason that there would be no mention of economic justification is 
that one might find that comparisons would be embarrassing.  For 
example, conventional generation would be cheaper than a lot of 
alternative energy projects, and electricity from an electric 
cooperative-built power plant would be cheaper than electricity from an 
independent power producer.

Mr. Merle L. Moden
1111 Thompson Ranch Road
Wimberley, Texas 78676-6129
512 847-1335


On 3/12/2011 9:08 AM, TEXAS66 at aol.com wrote:
> I, for one, don't see any problem with the proposed legislation.  
> Interesting that Co Ops are prohibited from getting into the 
> generation business EXCEPT for alternate energy sourced generation.  
> Nothing, however, about economic justification.
> I wonder how it will be amended along the route?
> Regards,
> Ken Rigsbee
> In a message dated 3/12/2011 1:53:08 A.M. Central Standard Time, 
> andy.citizen at gmail.com writes:
>
>     http://www.legis.state.tx.us/BillLookup/Text.aspx?LegSess=82R&Bill=SB1743
>     <http://www.legis.state.tx.us/BillLookup/Text.aspx?LegSess=82R&Bill=SB1743>
>
>     Only applies to co-ops over 170,000 members.
>
>     Mandates single member districts
>
>     Disallows proxy votes with very few exceptions
>
>     Disallows offering incentives for proxy votes
>
>     Requires some minimal open meetings and records policies
>     (basically that co-ops have to follow their bylaws)
>
>     What does everyone think?  I'll keep a watch on this and let
>     people know if a committee hearing is called.
>
>     ~~Andy Wilson
>
>
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