Abbott Seeks 10% to 13% Power Bill Cuts by Opening Austin, San Antonio Markets
Updated
Updated · Texas Border Business · Aug 11
Abbott Seeks 10% to 13% Power Bill Cuts by Opening Austin, San Antonio Markets
3 articles · Updated · Texas Border Business · Aug 11
Summary
Abbott proposed legislation to let Austin and San Antonio residents choose competing electricity providers, ending the exclusive control of the cities’ municipal utilities.
The plan also would bar cities from using utility revenue to support general budgets, a practice Abbott says inflates rates; city documents show utility transfers fund about 30% of San Antonio’s budget and 10% of Austin’s.
Abbott’s office estimates the changes would cut average electricity costs about 10% in Austin and 13% in San Antonio, where roughly 5 million Texans statewide are served by municipal utilities.
CPS Energy pushed back, saying it already delivers Texas’ lowest combined residential electric and gas rates with high reliability compared with investor-owned utilities.
The proposal revives a fight that stalled in the 2023 legislature and resurfaced at a Texas Senate hearing in May 2026, now folded into Abbott’s Keep Texas Affordable agenda.