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| New Braunfels Utility Company Photo by Morgan Mitchell |
New Braunfels Utility Company has been the only
utility company for New Braunfels for several years despite the citizen’s
rights to pursue the option for a competitive market.
In 1999, Texas State Senate put Senate Bill Seven into works and it went into effect on January 1, 2002. The bill made it
possible for cities, towns, and other communities to opt for a competitive
market concerning utilities. The process was named deregulation. This allowed
for the people to lobby their local officials for the right to choose which
electric provider to use.
There were a few contingencies. The bill made it so
there could be no monopolies within the cities. The monopolies only referred to
the utilities being owned by only a private company, but allowed for municipal
ownership – the city can own all the utilities.
Media Spokesman for the Association of Electric
Companies of Texas Ben Gaffaney explained the process of getting a competitive
market in New Braunfels.
“The law says that a city is allowed to enter into a
competitive market if it wants to if a governing body,” Gaffaney said. “So it’s
basically the decision of the city of New Braunfels if they wanted to enter the
competitive market.”
While the citizens have a right to lobby, the decision
is ultimately up to the city council itself. City Councilwoman Aja Edwards of
District Two has often wondered why there is only one utility company allowed
in New Braunfels.
“I don’t know why they initially went with that
option and I’ve often wondered, because it’s basically like a monopoly,” Edwards
said.
New Braunfels is among these select few that are not
deregulated due to the municipal ownership. New Braunfels Utility Company, NBU,
has been the longest running utility company for the city of New Braunfels with
the mayor of the city being declared the city appointed chairman for the board
of directors for the utility company.
“[The mayor] and his mom have been running this town
for forever,” Edwards said. “He knows the why and how of the legalized monopoly
that is NBU.”
Mayor Barron Casteel of New Braunfels explained the
costs of the utility bill and how there would be minor changes to them if New
Braunfels were to go to a competitive market.
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| New Braunfels has no options Photo by Morgan Mitchell |
“I don’t think deregulation would have a great
impact on New Braunfels Utilities, because we don’t actually recover any cost
associate with the actual power charge,” Casteel said. “We do that entirely as
a pass though expense.”
According to powertochoose.com, New Braunfels is not
eligible to be open for competition. However, comparing New Braunfels Utility
rates to those of other power company rates in Houston were astounding.
The current rate for power in New Braunfels is
$0.0452 per kWh. Whereas in Infuse Energy based out of Houston has the rate as
$0.012 per kWh.
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| Rates for Houston Texas Photo by Morgan Mitchell |
The mayor says that the city only makes its money
from delivery cost. However, based on these numbers it is hard to say why the
cost is that much larger.
Citizens of New Braunfels have every right, and
should lobby for the right to choose their utility provider. They can do so at
the City Hall meetings and by making phone calls to their district
representative.
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