Governor Rick, Political Payments, and Electric Rates ?

Perry's energy push gets mixed readings
Governor's office says moves are meant to aid ratepayers, not utilities
12:00 AM CST on Sunday, December 11, 2005
By SUDEEP REDDY / The Dallas Morning News
Gov. Rick Perry's efforts this fall to quell the uproar over soaring electricity bills could prove helpful in next year's gubernatorial race. They also should help TXU Corp. – well beyond the election season.
After hurricanes Katrina and Rita rocked energy markets, Mr. Perry won concessions from TXU Energy and other companies to help consumers being hit with the largest rate hikes ever.
Weeks later, Mr. Perry directed state agencies to accelerate approval of new power plants, possibly saving developers hundreds of millions of dollars. The order dovetailed with TXU's plans to become a major developer of coal plants.
Were these farsighted, pro-consumer initiatives, as the governor and industry leaders say? Or were they mutual back-scratching that got Dallas-based TXU favorable treatment and Mr. Perry some political cover, as critics assert?
The questions go to the heart of the long-running debate over how to structure the state's power industry: regulation vs. deregulation; the right mix of generation from nuclear, coal, natural gas and renewable fuels; ensuring that low-income Texans can afford electricity.
The governor's office and industry officials say the recent initiatives will help consumers cope with high prices and encourage long-term solutions to the state's power problems.
"The governor continues to fight hard to protect consumers as much as possible against rising costs of energy," said Kathy Walt, a spokeswoman for Mr. Perry. "His interest is making sure that we have competitive and alternative energy markets for consumers."

Critics say the agreements between Mr. Perry and TXU – parent of TXU Energy – were designed to help the governor deflect any attacks over high energy prices in his 2006 campaign.
"We believe this is part of a political payment to the electric utilities for their large contributions to Perry," said Tom "Smitty" Smith, the Texas director for Public Citizen, a consumer advocacy group. "We'll all pay the high price for this decision" through higher electric bills, more pollution and global warming, Mr. Smith said.

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