San Antonio leaders and CPS Energy are pushing back against Gov. Greg Abbott's proposal to open San Antonio’s electricity market to private, for-profit providers.
Abbott is arguing that competition would give customers more choices and lower their monthly bills.
San Antonio Mayor Gina Ortiz Jones has said local energy bills would increase under Abbott's plan.
Most Texans in deregulated markets can select a retail electricity provider. San Antonio residents instead receive power from CPS Energy, the nation’s largest municipally owned electric and natural gas utility.
Abbott’s office estimates competition could reduce residential electricity bills in San Antonio by an average of 13% and commercial bills by as much as 20%. However, the governor has not released a detailed analysis supporting those estimates. Abbott has also criticized the city’s use of utility revenue for purposes unrelated to providing electricity.
The governor's office has called CPS Energy's contribution to COSA's general revenue fund a "slush fund."
CPS Energy transfers 14% of its gross revenue to San Antonio’s general fund. The city budgeted approximately $504 million from CPS Energy for fiscal year 2026 — nearly 30% of general-fund revenue. That money supports police and fire protection, parks, libraries, senior services and other city operations.
Jones rejected Abbott’s description of that money as a “slush fund,” saying it pays for services that protect the community’s health and safety. She warned that losing the revenue would leave the city searching for replacement funding while confronting a projected budget shortfall.
CPS Energy says its not-for-profit structure keeps combined electric and gas rates among the lowest in Texas. Board Chair Francine Romero has also challenged Abbott’s comparison with Houston retail plans, arguing that advertised prices may be temporary or exclude fees.
Under current Texas law, a municipally owned utility’s governing body decides whether to participate in retail competition. Forcing CPS Energy’s market to open would therefore require the Texas Legislature to change state law. Abbott said he plans to pursue legislation during the 2027 session.
Guest:
Frank Almaraz is the interim president and CEO of CPS Energy.
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