Texas Railroad Commission Trying to Block Renewable Energy Lines to Help Big Oil

Dec. 2, 2009   

Texas Railroad Commission Trying to Block Renewable Energy Lines to Help Big Oil

Statement of David Power, Deputy Director,Public Citizen’s Texas Office

Seemingly out of concern that competitive renewable energy will damage Big Oil’s bottom line, the Texas Railroad Commission wants to block transmission lines that would put affordable energy from west Texas wind farms on an even playing field with the historical titans of Texas energy – oil and gas companies. 

A new investment in these transmission lines would save ratepayers $2 billion a year, reduce carbon dioxide emissions by 16 percent and create more than $5 billion in economic development benefits for Texas. Ratepayers, companies and organizations with an interest in seeing the further development of renewable energy and green jobs should contact the Texas Public Utility Commission (PUC) and tell them to deny the Railroad Commission’s request to intervene.

The Texas Legislature authorized these transmission lines in 2008 to address the lack of available transmission lines to deliver wind energy from the panhandle and west Texas to the major metropolitan areas in central Texas where demand is higher. This renewable energy helps reduce costs for ratepayers by providing abundant and inexpensive clean energy that helps offset the volatile price of natural gas.

In its filing with the PUC, the Railroad Commission inappropriately expressed concern for current and future oil and gas development in Texas. In doing so, the commission stepped outside of its regulatory role to promote the interests of Big Oil. While the commission’s stated task is “primary regulatory jurisdiction over (the) oil and natural gas industry,” in this case, it is attempting to pick winners and losers in regards to Texas’ energy future.  It is also questionable whether Michael Williams, who sits on the Railroad Commission and who is currently in the running for Kay Bailey Hutchison’s U.S. Senate seat, is acting in the best interest of the public or doing favors for potential campaign contributors.

This is another example of outrageous overreaching by the Railroad Commission on behalf of the same industries it is supposed to regulate. The commission is charged with regulating the oil and gas industries, not with protecting their interests with taxpayer dollars. The Railroad Commission and Mr. Williams need to stick to their own jurisdiction, rather than making an inappropriate power play to earn favors with Big Oil.

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