Donors tied to pipelines accused of triggering blackouts gave $6.3M to Texas officials

quote:

---

Donors tied to 36 natural gas pipeline and trading companies accused of causing or profiteering from the 2021 blackouts have given $6.3 million to the top seven elected officials overseeing the industry since 2017, a new analysis from Texas for Public Justice revealed Friday.

Perhaps that explains why no Texas official is looking into fraud and market manipulation accusations that attorneys general in Kansas and Oklahoma find so concerning. Or maybe Texas Attorney General Ken Paxton has been too busy doing other things to read the lawsuit brought by CirclesX, a Houston energy data firm.

Texans for Public Justice took on the tough job of going through thousands of pages of campaign finance data after reading my series explaining how pipeline companies seeking to boost profits are alleged to have triggered four days of blackouts during Winter Storm Uri in 2021.

---

quote:

---

Gov. Greg Abbott appoints the Public Utility Commission, which oversees the Texas electricity grid, and received $4,258,597. Lt. Gov. Dan Patrick presides over the Senate, which oversees state agencies, and received $799,337.

---

quote:

---

Railroad Commissioner Christi Craddick, the longest-serving commissioner at the agency charged with regulating natural pipelines, received $380,174. The other commissioners, Jim Wright and Wayne Christian, received $210,202 and $202,801, respectively.

Pipeline-connected donors gave House Speaker Dade Phelan $317,253 and Paxton $161,702.

---

quote:

---

Texas law forbids companies from making campaign donations, but individuals may give as much as they want. Large donors must report their employer’s name or any relevant corporate affiliations.

People affiliated with Energy Transfer Partners, which made $2.4 billion in excess profits during the storm, gave Texas politicians the most. Led by CEO Kelcy Warren, who wrote a $1 million check to Abbott’s campaign, Energy Transfer executives donated $3,240,500.

---

quote:

---

Kinder Morgan folks are in second place, giving $1,077,600. Richard and Nancy Kinder gave Abbott $500,000 alone.

---

quote:

---

Why do Texas-based pipeline companies make such huge donations? Because Texas is a very special place when it comes to pipeline regulation.

Federal law governs pipelines that cross state lines, but state laws apply to the others. Most states mirror federal law and require pipelines to behave like a toll road, only allowed to charge for the volume of natural gas that passes through them.

Texas uniquely allows pipeline companies to own what’s inside the pipe, giving them monopoly powers. For decades, well owners have complained that pipelines require them to sell their gas at secret, low prices, while power plant operators complain pipelines demand secret, high prices when the gas reaches them.

Texas officials could take away the right to own the gas or insist on a transparent gas market where prices are public. But if Texas took those steps, Texas pipeline company profits would plummet. They make billions annually by secretly trading and moving gas around to maximize profits.

---