The state consumes electricity to heat, cool, and light office buildings, prisons, mental health facilities, and state schools. Electricity runs office equipment, food storage and preparation equipment, laundry facilities, and recreational equipment. Electricity is also used in state parks and to light Texas' highways. The state pays for its electricity consumption in two ways. The amount the state pays indirectly cannot be accurately estimated.
State agencies have limited choices when buying electricity.
Like all other consumers, state agencies must buy power from the utility company that serves their area. In some cases, an agency with a large facility may find it cost-effective to generate its own power and bypass the utility. For example, the University of Texas at Austin generates all of its own power and has significant excess capacity. When occupying leased space, agencies may either include utility payments in the monthly lease cost or pay the utility bill separately. Since utilities are not required to bill nonresidential customers at the most economical rates, the burden of making complex rate comparisons falls on the customer.