Back in January, most Texas electricity consumers woke up to a bright shiny future of energy deregulation, where competition meant prices magically dropping and big electric firms like TXU producing power by stroking kittens. Low-emission kittens, at that.
Austin Energy, like every other municipal utility in the state, decided not to get involved in what many market-watchers feared would be a race to price increases. Even so, the new deregulated retail policy has affected all the municipalities through changes to the wholesale electric market. So it looks like AE is bringing in some outside help.
According to a press release issued today, they’re teaming up with the Alliance for Cooperative Energy Services Power Marketing (or ACES Power Marketing, or APM for acronym buffs), who are experts in reducing risk on the energy markets. Anyone who tried to keep track of the labyrinthine complexities of the Enron scandal will know how mind-bogglingly complex and perilous longterm contracts and on-the-margin power buying can be.
And before there’s concerns about city cash going on predatory consultants, it’s worth noting that APM is actually owned by other power co-ops and municipalities around the nation.
This article appears in June 29 • 2007.
