The Railroad Commission was founded in the 1890’s as one of the first agencies in Texas designed to protect everyday Texans – it was set up to protect the farmers from the railroads and their predatory tariffs and rates. Although the railroad regulation side of the Commission is gone, the Commission still can perform an important consumer protection role. The Texas Railroad Commission hears contested case hearings regarding natural gas utility rates. In recent years, these hearings have gone badly for consumers (who are often represented by the cities). Unwarranted and unnecessary costs have been wrapped into the rates consumers must pay. Also, the move toward more flat fees has the effect of decreasing the consumers’ incentive to conserve energy. And all of this goes on while the utilities receive a guaranteed rate of return, regardless of the economy.
Texans’ utility bills are too high. I will have no bias, real or perceived, toward any party in the hearings. I am in favor of the utility companies making a fair profit – but in tough economic times, burdens felt by individual consumers who are fighting to make ends meet should be shared by the utility companies too.
