Texas electricity wholesale markets overhaul sparks debate

Metroplex residents could get slammed with higher electric bills -- up to 100 percent higher, by some estimates -- under a big overhaul of the Texas electricity market set for 2006.

The plan has drawn fire from Metroplex businesses, municipalities and other government groups. Critics warn that the contemplated overhaul will drive up bills and could sap the economy.

"We could end up taking a huge hit," said Diane Weklar, executive director of the DFW Electric Consumer Coalition.

But Paul Hudson, chairman of the Texas Public Utility Commission, said it's too early to determine the potential effect on consumers.

He said the PUC, which is hearing commentary now, can reverse course.

Is "this process irrevocable?" Hudson said. "The answer is no."

The switch, initially approved by the PUC in August, would change how operators of the Texas power grid oversee wholesale electricity transactions. Instead of overseeing transactions in the current five- region setup, grid operators would oversee them in scores, or perhaps hundreds or thousands, of "nodes."

In theory, this market would clear the way for competitive forces to ease electricity bottlenecks that frequently occur on transmission lines. Such bottlenecks can cause blackouts.

Under the plan, prices should fall in regions with fewer bottlenecks such as Houston, and rise in regions with more, such as the Metroplex. Supporters say the new system would increase competition in the wholesale market, which would gradually lower prices.

Fort Worth Star-Telegram, Texas