Texans stranded with $ 5,000 electricity bills after winter storm need help, officials say

(Reuters) – Elected officials in Texas have said the state should help pay for some of the haunting electricity bills sent to residents after the devastating and deadly winter storm that caused widespread blackouts.

Texas has a very unusual deregulated energy market that allows consumers to choose from dozens of competing electricity providers.

Some providers sell electricity at wholesale prices that increase with demand, which has skyrocketed as a record frost gripped a state unaccustomed to extreme cold, killing at least two dozen people and cutting electricity to more than 4 million people at its peak; some 30,000 people were still without power on Sunday, Texas Governor Greg Abbott said.

As a result, some Texans who were still able to turn on the lights or run their refrigerators ended up with $ 5,000 bills for just five days, according to photos of bills posted on social media by people. angry consumers.

The Dallas Morning News said a provider with a wholesale tariff plan urged its thousands of customers to switch providers before the storm to avoid high prices, but many felt it would take too long to switch providers. .

“The bill should go to the state of Texas,” Houston Mayor Sylvester Turner said in an interview with CBS News on Sunday. “When they get these sky-high electricity bills and have to pay for their house, fix their house, they shouldn’t have to take responsibility for it.”

Fort Worth Mayor Betsy Price told CBS the state and federal government should help with the bills.

US Senator Ted Cruz, who was forced to cut short a vacation getaway with his family to the Mexican resort town of Cancun after public outrage, also distanced himself from the free market system he previously had rented.

“It’s BAD,” Cruz wrote on Twitter. “No utility company should have a windfall due to a natural disaster, and Texans shouldn’t be hit with ridiculous rate hikes for last week’s energy debacle. National and local authorities must act quickly to prevent this injustice. “

Abbott called an emergency meeting of state lawmakers on Saturday to discuss the issue, saying in a statement they have a responsibility to ensure Texans “don’t get stuck with soaring energy bills. sharply”.

The governor told reporters on Sunday that the Texas Public Utilities Commission will order power companies to stop sending utility bills to customers. The commission is also issuing a temporary moratorium on disconnection for non-payment, Abbott said.

Separately, Texas Attorney General Ken Paxton has issued civil inquiries to utility companies regarding the outages, their contingency plans and tariffs, saying the companies had “mismanaged” the emergency. meteorological.

U.S. President Joe Biden on Saturday approved a major disaster declaration for Texas that makes federal funding available to those affected by the storm, including help with temporary housing and home repairs and low-cost loans.

All power plants were back online this weekend and power had been restored to most homes as the weather returned to normal, but concerns remained over the water supply to millions of Texans being advised to boil the water before using it. Houston officials said the city’s water was safe to use without boiling as of Sunday.