Qualcomm Stock Falls as Weak Q4 Forecast, Apple Revenue Decline Overshadow AI Data Center Growth 
Starbucks Stock Jumps as Q3 Earnings Beat, Sales Growth Drives Higher 2026 Outlook 
Sony Raises Full-Year Outlook After Q1 Profit Jumps 40% on Gaming and Chip Growth 
Holcim Raises 2026 Outlook After Strong Q2 Earnings Beat 
Apple Stock Slides 7% as Weak Sales Forecast Overshadows Quarterly Earnings Beat 
Standard Chartered Beats Profit Forecasts as First-Half Earnings Rise 9% 
Roblox Stock Drops 16% as Q3 Bookings Forecast Misses Expectations 
Colgate-Palmolive Reaffirms 2026 Sales Outlook Despite Weak North America Demand 
Japan Earthquake Disrupts Auto and Chip Supply Chains 
OpenAI Revenue Surges After GPT-5.6 Launch as IPO Expectations Grow 
Meta-backed research finds exposure to ‘untrustworthy’ social media is rare. The fine print is less reassuring 
Meta Stock Drops After Earnings Miss as AI Spending and Legal Costs Weigh on Profit 
GSK Unveils $2.52 Billion Cost-Cutting Plan to Accelerate Drug Pipeline 
Warner Bros. Discovery Shares Rise as Newsom Pushes Settlement in $110 Billion Merger Fight 
Tesla Weighs China Business Separation Amid SpaceX Merger Speculation 
Russia Charges Telegram Founder Pavel Durov With Facilitating Terrorism, Seeks International Arrest 
SpaceX Wins $1.6 Billion U.S. Space Force Launch Contracts for Falcon 9 Missions Through 2027 
AUSTIN, Texas, May 02, 2018 -- Yesterday, the Texas Senate Committee on Business & Commerce held a hearing to investigate whether consumers in Texas are better served through competition in electric service. The testimony provided will help the legislature understand the impact of competitive versus noncompetitive retail markets across the state in terms of price and reliability. Information shared at the hearing will assist the legislature in setting future policies regarding the state’s electricity market.
Edward Henigin, Data Foundry’s CTO, was invited to testify by the committee on Data Foundry’s battle with Austin Energy’s non-competitive business practices that cost Austin Energy ratepayers hundreds of millions a year.
Austin Energy is both a service provider and a generator of electricity; however, the power they generate does not directly serve the Austin market. According to Austin Energy’s 2015 Cost of Service Study and Proposal to Change Base Rates, their owned and contracted power plants do not serve Austin Energy customers directly. Instead, this electricity is sold wholesale to ERCOT, the grid, at a loss.
“Generation is totally unnecessary for Austin Energy to provide service to its subscribers. We have established, and Austin Energy agrees, that 100% of the power consumed by its customers is purchased from third parties,” says Henigin.
Some Austin companies have come to the realization that Austin Energy loses money generating electricity for the wholesale market. Data Foundry discovered Austin Energy loses approximately $300 million a year in generation costs. To compensate, they cross-subsidize, charging their retail customers higher rates. Because Austin Energy is a monopoly, customers are forced to pay these rates. “The practice of cross-subsidization is anti-competitive and illegal,” says Henigin.
Data Foundry has long supported free and open market policies, especially when it comes to the Internet. The company feels the same about electricity and will continue to fight anti-competitive practices in the Austin market.
About Data Foundry
Founded in 1994, Data Foundry is a privately held company headquartered in Austin, Texas that owns and operates purpose-built, carrier-neutral data centers, providing colocation and managed services for enterprises across a variety of industries. The company's data centers are supported by onsite technicians and security staff 24x7x365. Data Foundry operates a global network with colocation presences worldwide. For more information, visit www.datafoundry.com.
Media Contact [email protected]
