Texas electricity officials are considering raising the current cap on wholesale electricity rates that electricity providers pay. Some providers including TXU energy are setting the stage with the Texas Public Utilities Commission to be able to break fixed rate  contracts with consumers in order to be able to pass along their additional costs to consumers.

Excerpt from TXU letter to the Texas PUC:

“TXU Energy believes that, as a matter of policy, the Commission could reasonably interpret P.U.C. SUBST. R. 25.475 to allow REPs to increase the price of existing fixed-rate contracts for residential or small commercial customers to the extent that the REP's actual costs increase due to an increase in the cost of wholesale power caused bythe change in the SWOC.”

See full filing here: http://interchange.puc.state.tx.us/WebApp/Interchange/Documents/37897_149_727044.PDF

Texas electricity rates will almost certainly go up as a result of the PUC move to raise whole rate caps from $3,000 per megawatt hour to $9,000.