Democrat Gina Hinojosa, who is running for governor of Texas, speaks during a press conference in San Antonio. Credit: Stephanie Koithan

Texas Democratic gubernatorial candidate Gina Hinojosa is accusing Republican Gov. Greg Abbott trying to retaliate against San Antonio and its city-owned electrical utility, CPS Energy.

During her campaign’s Latinas for Gina launch party Thursday at San Antonio’s Woodlawn Theatre, Hinojosa — an Austin state rep — said her rival’s pledge to break CPS Energy’s regulated-monopoly status is less about saving Texans money than it is about enriching his wealthy donors.

Abbott’s comments about his desire to “end the monopoly control that cities like Austin and San Antonio have over electricity services” came about a month after a state district judge ruled against CPS Energy in a lawsuit filed against two gas companies that CPS Energy accused of charging it exorbitant prices during 2021’s Winter Storm Uri.

“Your electric company, CPS Energy, took that gas company to court to defend you, so that your prices wouldn’t go up because of what they did to us,” Hinojosa said. “CPS Energy did that to defend you. They didn’t win in court. And now Greg Abbott has come back — as payback, as retribution — to try to take away your energy company and jack up profits, guaranteeing that you will pay even more for your electricity bill. That is an example of the Greg Abbott corruption tax.”

In July, State District Judge Laura Salinas ordered CPS Energy to pay nearly $400 million to two Energy Transfer subsidiaries.

During Uri, which left millions without power, CPS Energy spent some $850 million on fuel. Nearly half of that went to the Houston Pipeline Company and Oasis Pipeline for natural gas delivered during the storm’s price surges.

CPS Energy paid about $52 million to the two companies, but ended up disputing the charges and refusing to pay the remaining $264 million.

In the end, Judge Salinas ruled against CPS Energy.

A month after that ruling, Abbott announced he’s calling on the GOP-controlled Texas Legislature to break up CPS Energy during its 2027 session.

If lawmakers follow through, many worry the breakup would worsen the Alamo City’s already precarious financial situation. San Antonio faces a $158 million budget deficit, and roughly 30% of the city’s $1.7 billion general fund budget is made up of CPS Energy revenue.

In a statement to the Express-News, CPS Energy said “any threat to the not-for-profit municipal model is a threat to all customers.”

During a town hall last week, San Antonio Mayor Gina Ortiz Jonessaid Abbott’s comments about breaking up CPS Energy are concerning.

“The fact that we own [CPS Energy] means we pay the lowest in electricity and gas rates in Texas,” Jones said. “You tell me the last time was something fully privatized and passed on those savings to you.”

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Michael Karlis is a multimedia journalist at the San Antonio Current, whose coverage in print and on social media focuses on local and state politics. He is a graduate of American University in Washington,...