Rather than force Texas consumers to fix an electricity reliability problem created by cheap, subsidized, yet unreliable wind power with a hidden $4 billion tax enacted by… the PUC, a better solution would be to ask wind generators foot the bill to fill the gap… that they themselves created.
Renewable energy subsidies give the bill to the taxpayers Texas Public Policy Foundation
As early as Dec. 20, the Public Utility Commission of Texas may vote to increase electricity costs on consumers by up to $4 billion. Meanwhile, in California, that state’s PUC is considering a “ tax ” on text messages to the tune of $45 million per year and may even apply the “Public Purpose Program” fee retroactively, raising an additional one-time amount for past text messages of $220 million.
Neither the California Public Utility Commission nor its Texas counterpart is run by elected officials; both consist of commissioners appointed by their respective governors: Jerry Brown (D-CA) and Greg Abbott (R-TX).
While the PUCs in America’s two most-populous states are considering moves that will add to consumer costs, voters in both places have little recourse—there’s no one to vote out. And some politicians appear to like this blame-shifting arrangement.
They can stand avoid blame as the PUCs levy fees and taxes, but you can be sure they’ll take credit for the programs.
In California’s case, a Public Goods Charge was applied to electricity and natural gas users in 1996 to fund various programs directed by the legislature. That taxing authority expired in January 2012. Because the legislature couldn’t muster the needed two-thirds vote to extend the tax, Gov. Brown asked the PUC to take administrative action to continue the program by other means. They did so, extending the taxing power of the redistributive welfare state without a vote of the people’s elected representatives.
As a result of this program and others, consumers are charged more for electricity, phone service and other utility services in California, and the government directs the utilities to provide those services at a subsidized rate to specific groups based on income, age, or disability.
In Texas, something similar may happen.
