Lawmakers and Texans are calling for more transparency about a taxpayer-funded program that provides loans and grants for electrical infrastructure projects.
According to Houston ChronicleThe state Public Utilities Commission spent thousands of taxpayer dollars keeping details of the questionable claim secret.
What's happening?
The Public Utility Commission of Texas (PUC) is responsible for administering the energy fund, which voters approved in November 2023 to “fund the construction, maintenance, modernization and operation of electric power facilities in Texas,” according to a statement press release.
Two years later, lawmakers and residents are demanding information about Texas Energy Fund applicant Aegle Power, which was seeking funding from the $7.2 billion allocated for gas plants.
They found out that Eagle Power listed according to The Chronicle, a major company sponsored him without permission. It was also revealed that energy company CEO Kathleen Smith pleaded guilty to participate in an embezzlement scheme when she headed another company.
As of July, the PUC had spent more than $31,000 of taxpayer money to keep details of the application confidential after Attorney General Ken Paxton ruled that it must release the information.
The agency has also spent thousands more on lawyers (using taxpayer dollars) in its fight to suppress details of a controversial Dallas-area gas power plant and Bitcoin mine, as well as other cryptocurrency mining operations registered in Texas.
Why is this important?
When gas power plants and cryptocurrency mines open, they can have an undesirable impact on the well-being and quality of life of society. For example, in Granbury, a small town southwest of Fort Worth, residents reported permanent hearing loss as a result of 24-hour cryptocurrency transactions. Gas power plants are also radiate hazardous air pollutants such as formaldehyde.
Cryptocurrency mining businesses are increasingly using more sustainable energy sources, indicating a positive trend in the industry that could spur green innovation and offer a safer form of banking. However, the PUC's lack of transparency has undermined taxpayer confidence.
Ultimately, it could set back progress in solving energy infrastructure problems exacerbated by the massive energy demands of the data centers that support cryptocurrency mining—an energy demand that has contributed to rising electricity prices in Texas and elsewhere.
“You have your hand in my wallet and I still pay to hide all this information?” said Hood County resident Cheryl Shadden, the Chronicle reported.
What is being done about it?
PUC Representative Ellie Breed said The Chronicle noted that there was nothing “very extraordinary” about the commission’s call to keep the information confidential. But energy consultant Alison Silverstein, who served as PUC counsel in the 1990s, said she found it odd that the PUC was challenging Paxton's decision since his office rarely rules against state agencies.
“Much of the business that the PUC does involves money, and in the case of the Texas Energy Fund, significant amounts of taxpayer money,” Silverstein said. “I'm just kind of stunned.”
Meanwhile, the Texas Energy Fund's gas-fired power plant lending program is failing. Texas Tribune reports tariffs, a shortage of turbines and the high cost of such projects are reasons why solar panels and batteries continue to be a popular choice for developers. Texas also has dominated the US wind energy market for almost 20 years.
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