Brownwood Poor, Electricity, & Politics

May 23, 2005, 11:58PM
Low-income bill-payers face jolt

Fund providing electricity break likely to be empty
Associated Press
AUSTIN - About 120,000 low-income TXU customers can expect to pay 10 percent more for electricity each month because of state budget negotiations.
That would be on top of TXU's 9.9 percent rate hike approved May 11 by the Public Utility Commission of Texas.
A legislative committee considering the state's budget voted last week to drain a fund that provides electric discounts for about 370,000 low-income Texans. The panel directed the money to other uses in the two-year budget.
Critics contend that breaks a promise of lower rates made under the state's 1999 electric deregulation law. It also adds to the generally shabby treatment of low-income Texans by the 79th Legislature, said state Rep. Sylvester Turner, D-Houston.
However, state Sen. Steve Ogden, chair of the Senate Finance Committee, said the money would be better used for other social services.
"The issue before us is how we cover the health and human services budget that has increased by 18 percent," said Ogden, R-Bryan.
About $200 million flows each year into the System Benefit Fund, which was created as part of the electric deregulation law adopted by the Legislature in 1999.
TXU supports the fund and has made a separate $15 million contribution to help low-income customers.
"We recognize that electricity is a matter of life or death in Texas," company spokesman Chris Schein said. "We support the System Benefit Fund and what it does — and what it can do — for those customers in need."
The committee has yet to approve the final budget, which must go to the full House and Senate before the Legislature convenes May 30.
source: http://www.chron.com/cs/CDA/ssistory.mpl/business/3195125