$4 Billion Subsidy to Texas Power Plants

Written By: Energy Guru - Jan• 06•14

power plantThe billions of dollars in expense for new power plants will have an effect on the state of Texas, and reports are looking into how they will need to accommodate these big power companies. The state senate committee also held a hearing to try and analyze the market for electricity further.

What’s being considered is a capacity market which will involve a subsidy that would fund these new power plants in Texas. This idea has drawn fierce opposition. Passing off around $4 billion per year is not an idea that many are backing up, and it is being determined what kind of effect this subsidy would have on the economy in Texas.

Senators in Texas who attended the hearing in Austin weren’t so sure if the power plants are really needed in the state.

New Jersey is critical of the state’s choice for a subsidy, saying that it is a stake that they should not be taking. $4 billion is a lot to give out to power plants, so it is uncertain how this situation will play out.

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