SAN ANTONIO – Texas Gov. Greg Abbott on Tuesday announced a plan aimed at opening parts of Texas’ electricity market to competition in cities served by municipally owned utilities, including San Antonio, where CPS Energy provides electric and gas service. In remarks previewing the proposal, Abbott described municipally owned utilities as “energy monopolies” and argued their structure can prevent customers from shopping for lower rates.
Abbott also criticized what he called a “tax through electricity prices,” referring to the practice in some cities where a portion of utility revenue is transferred to local governments to support public services. In San Antonio, CPS Energy’s revenue transfers have long been a significant source of funding for the city budget. Supporters of municipally owned utilities say those transfers help pay for local services while allowing local control of the electric system. Critics argue the structure can raise costs and reduce consumer choice.
>> Gov. Abbott announces plan to break energy monopolies in cities like San Antonio, Austin
The announcement comes months before the next Texas legislative session, when any major restructuring affecting municipally owned utilities like CPS Energy would likely need to be debated and approved. Abbott is running for re-election in 2026, and energy affordability has become a major political issue statewide. Abbott’s office has not publicly provided a detailed explanation for the timing of this week’s rollout.
If lawmakers were to approve legislation that changes the current municipal utility model in certain cities, it could open communities like San Antonio to retail electric providers that already compete in deregulated parts of Texas. The Public Utility Commission of Texas lists roughly 140 certified retail electric providers statewide. It is unclear how many, if any, would choose to enter a newly opened San Antonio market, but the change could create opportunities for providers seeking additional customers.
Campaign finance disclosures show Abbott has received political donations from some energy-related interests. According to Transparency USA, a nonprofit, nonpartisan organization that tracks and publishes state-level campaign finance data, entities tied to several electricity companies have contributed to Abbott’s campaign in recent reporting periods, including:
- Vistra Corp. (through Vistra Employee State PAC): $25K (Transparency USA)
- NRG Energy (NRG Energy Inc. PAC): $35K (Transparency USA)
- CenterPoint Energy (CenterPoint Energy, Inc. PAC): $20K (Transparency USA)
- Oncor Energy (Oncor TX State PAC of Oncor Electric Delivery Administration Corp.): $100K/$200K (Transparency USA)
- Vistra Energy Corp.: $25K (Transparency USA)
- NextEra Energy Inc. PAC: $15K (Transparency USA)
- El Paso Electric Company Employee PAC: $10K (Transparency USA)
The list is not comprehensive and reflects a sample of donations from electricity-related interests to the three-term governor, as shown in Transparency USA’s database. Texas law allows corporate PAC participation in campaign giving.
KSAT also checked whether retail electricity providers donated to Democratic challenger Gina Hinojosa’s campaign. Campaign officials said Hinojosa does not accept donations from corporate PACs, including those associated with electricity or utility companies.
San Antonio Mayor Gina Ortiz Jones, on the KSAT Q&A, said, “San Antonio and Castroville that are both municipally owned utilities actually have the cheapest utility cost when it comes to electricity and gas. So this idea that we’re sort of being frivolous and not managing this well is not correct.”
WATCH THE Q&A BELOW:
CPS Energy responded to the governor’s announcement with a statement:
“CPS Energy consistently maintains the lowest combined electric and gas residential rates in Texas and high reliability, including compared to investor-owned utilities.
As an organization that is owned and operated by Texans, our success supports regional jobs, energy resiliency, small businesses, customer assistance programs, and strengthens both the state grid and economy. Any threat to the not-for-profit municipal model is a threat to all customers.
Our returns benefit the community, with the investment going to our customers rather than private investors. We welcome the opportunity to have conversations about this once a proposal is shared.”
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