San Antonio residents and officials responded Wednesday after Gov. Greg Abbott unveiled a plan to break up city-owned energy utilities — a proposal that would affect CPS Energy, the municipally owned electric and gas utility that serves more than half a million customers in the San Antonio area.
What Abbott proposed
At a news conference this week, Gov. Abbott said his plan would dismantle what he called energy monopolies in cities such as San Antonio and Austin, allowing customers to choose among retail electric providers the way Texans in many other cities can. Abbott argued increased competition would lower bills for consumers.
Local reaction: from a supporter and the mayor
Some San Antonio customers embraced Abbott's pitch. Carl Duelm, a CPS Energy customer who hosted Abbott at his Northeast Side home, described rising bills and urged change.
“My last bill right at this time last year was $280, and this one was $326, so that’s almost a $50 increase,”Duelm said, according to the local report. He told KSAT he supports Abbott’s proposal so San Antonio residents could search for lower retail rates online and force CPS Energy to be competitive.
Abbott pointed to examples such as Dallas and Houston, saying cheaper energy options are available there because customers can shop retail providers. He cited figures during his remarks, saying the average cost for electricity in San Antonio is 12 cents per kilowatt-hour, and that in Houston rates are available as low as 6 cents per kilowatt-hour; he also noted some rates statewide reach as high as 19 cents per kilowatt-hour. KSAT checked those numbers and referenced ElectricChoice.com for comparable rates.
San Antonio Mayor Gina Ortiz Jones pushed back on the governor’s characterization, disputing the suggestion that municipal ownership has led to high prices.
“San Antonio and Castroville that are both municipally owned utilities actually have the cheapest utility cost when it comes to electricity and gas. So this idea that we’re sort of being frivolous and not managing this well is not correct,”she said on air with KSAT after Abbott’s announcement.
What the numbers show
KSAT reported that ElectricChoice.com lists Houston rates that can go as low as 6 cents per kilowatt-hour, while the average rate cited for San Antonio was 12 cents. The local coverage noted that although some low-rate offers exist in larger markets, average rates can be closer across cities depending on the plan.
| Area | Rate cited |
|---|---|
| San Antonio (average) | 12¢/kWh |
| Houston (lowest cited) | 6¢/kWh |
| Some statewide offers | up to 19¢/kWh |
Why San Antonio officials object
Mayor Ortiz Jones’ remarks underscore a central point of dispute: whether municipal ownership delivers lower costs and greater public accountability than a competitive retail market. Municipal utilities like CPS Energy are governed locally and, supporters say, can prioritize reliable service and community-oriented investments over shareholder profits.
- Supporters of Abbott’s plan say retail competition could drive down consumer bills and offer more choices.
- Opponents, including San Antonio city leadership, argue municipal utilities already provide competitive rates and local control.
- Customers who’ve seen bills rise say immediate relief is their priority, regardless of ownership structure.
As the debate continues, San Antonio residents should expect more public discussion and scrutiny. Any legislative changes proposed by the governor would need to clear the Texas Legislature and likely trigger an extended public policy debate about rates, reliability and local control of energy resources.
For now, the clash highlights a practical concern for many households: how to keep electricity affordable. Whether that will come from more retail competition or from reforms within municipal systems remains the central question confronting San Antonio voters and policymakers.
