Government Policies Drive $19.9 Billion Increase in Texas Electricity Costs for 2023
A decade of government-imposed costs has added over $84 billion to Texans’ electricity bills, with further increases projected through 2028.
AUSTIN, TEXAS [July 17, 2024] - The Energy Alliance has released a comprehensive report revealing the substantial impact of government policies on Texas electricity costs. According to the report, government-imposed costs (GIC) increased Texans' electricity bills by $19.9 billion in 2023, accounting for nearly 43% of the total electricity costs in ERCOT areas. Over the past decade, these policies have cumulatively added $84.3 billion to the state's electricity expenses, with renewable energy subsidies identified as a major contributor to these rising costs.
The report underscores how continuous subsidies for renewable energy have not only escalated costs but also compromised the reliability of Texas's electric grid. Notably, in 2023, the newly introduced ERCOT Contingency Reserve Service (ECRS) added $12 billion to wholesale electricity prices, further exacerbating the financial burden on consumers.
Bill Peacock, the report's author, states, "Government interventions, particularly in the form of renewable energy subsidies, have led to a significant increase in electricity costs for Texans. These subsidies, intended to support green energy, have instead created a less reliable grid and placed an undue financial burden on consumers."
Looking ahead, the report projects that from 2024 to 2028, government-imposed costs could add another $67.9 billion to electricity costs in ERCOT regions. Renewable energy subsidies alone are expected to account for $27.2 billion of this increase.
The Energy Alliance, a project of the Texas Business Coalition, aims to raise awareness of key energy market issues, focusing on reliability, affordability, and efficiency. The organization advocates for the elimination of all energy subsidies as a necessary step toward restoring a competitive and reliable electricity market in Texas.
More information and the full report can be viewed here.
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