TCA: Prop 7 Is Expensive Subsidy That Never Ends

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Oct 12, 2023, 17:27 ET

AUSTIN, Texas, Oct. 12, 2023 /PRNewswire/ -- Texans will vote Nov. 7 on Proposition 7, a $10 Billion, never-ending subsidy scheme that will not improve grid reliability, said Texas Consumer Association (TCA) which represents the interests of electric customers across the state. TCA is encouraging Texans to vote NO at the ballot box.

Key problems with Proposition 7 include:

It never ends. The Energy Fund created by Prop. 7 will be a permanent fixture in the Texas constitution. There is no end or limit to the taxpayer dollars that could be used to subsidize billion-dollar corporations into perpetuity.
It's structured to benefit only one industry. To qualify for the subsidy, a company must specifically build a natural gas power plant, regardless of whether it would be economically viable or if there is a better alternative.
There is no guarantee that new generation will be built. No companies provided a commitment to use this program to build new generation if the amendment is passed by voters. No experts testified that this scheme will actually work.
It doesn't fix the generation problem. For $10 Billion, the state will only get about 3,500MW of new power plants – in 2028. ERCOT recently announced it needs 3,000MW just to make it through this winter and that need is expected to grow about 10 percent per year. By the time new generation is built, Texas will need significantly more generation.

"The problems with Proposition 7 have been recognized by a number of groups across the political spectrum. Remarkably, this scheme has resulted in a rare case of Texans from both sides of the aisle coming together in opposition," said TCA President Sandie Haverlah. "Texans believe in a hand up, not a handout. Proposition 7 is nothing more than a handout that our children and grandchildren will be paying for and should be voted down."

Texas Consumer Association is a non-profit organization representing individual and small-business consumers on pocketbook issues for over 50 years. Find TCA at https://www.texasconsumer.org/ and on X (Twitter) @TXConsumer. Email [email protected]. For more information or questions, you can reach Sandie Haverlah, President of TCA, at (512) 423-0913.

SOURCE Texas Consumer Association