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• Ike recovery update

by Lone Star Report

Thu, Sep 18, 2008, 10:39 AM

Because Texas’s efforts to recover from Hurricane Ike have received very detailed coverage in state and national media, we are restricting our coverage of it to key, policy-relevant items. That said, here are some key developments: * The electric grid operator, the Electric Reliability Council of Texas (ERCOT), estimates that 1.4 million Texans are still without power. The number of high-voltage transmission lines still out has been reduced to 22.
* ERCOT has also announced it is withdrawing a request for an increase in its fee due to a delay in rolling out the new nodal electric market, which is designed to make it more difficult for electric companies to profit from unlawful market manipulation. * More than three dozen school districts remain closed due to lack of power or damage, the governor’s office estimates.
* The state has suspended collection of the hotel and motel tax for evacuees.
* The Attorney General is running operation “Safe Shelter,” providing evacuee shelters access to the list of Registered Sex Offenders to ensure law enforcement in the shelters has access to that information.

* The Texas Coalition for Affordable Insurance Solutions (TCAIS) is warning that the Hurricane will have a serious impact on the state’s insurance market as well as the state budget. TCAIS is estimating that the Texas Windstorm Insurance Association (TWIA) will have to make large assessments against existing homeowner’s insurance companies. Such a large assessment will adversely affect state general revenue, because the insurance carrier gets tax credits to offset much of the assessments. “Although it’s too early to have firm damage estimates, it’s likely they will be extremely high given the force of the storm and its path through a heavily developed and populated area,” Floyd said. “The reality is that all Texans will be affected as the marketplace is rocked by these losses. The combination of company losses and TWIA assessments is an enormous blow to the State of Texas. As we recover from the hurricanes of 2008, all Texans – not just those on the coast – should demand that lawmakers reform TWIA during the 2009 legislative session to provide a financially sound system that would minimize risk to TWIA policyholders, Texas taxpayers and the State of Texas.”

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