Coverage Map of Deregulated Cities in Texas
The Deregulation of Electricity in Texas
In January 2002 the Senate approved Bill 7, which gave Texas cities the ability to choose to retail electricity or for it to be provided by a co-operative entity.
With this, 85% of Texas energy consumers (those served by a company not owned by a municipality or a utility cooperative) can choose their energy service from a variety of “retail electric providers” (REPs), including the incumbent utility. The current utility in the area still owns and takes care of the local power lines (and is the company to call in the event of a power outage) and is not subordinate to deregulation. Customers served by cooperatives can choose an alternate retail provider only if the utility has “opted in” to deregulation; to date, only the area served by the Nueces Electric Cooperative has chosen to opt-in.
The Effect of Deregulation on Electricity Prices
One wished-for effect of the opposition was lower energy rates. In the first few years after the deregulation in 2002, the residential rate for energy increased seven times, with the price to beat at around 15 cents per kilowatt-hour (as of July 26, 2006, www.powertochoose.org). But while prices to consumers increased 43% from 2002 to 2004, the costs of inputs rose faster by 63%, showing that not all increases have been borne by customers. (See Competition and entry of new firms above for discussion on the conjunction between retail prices, inputs, and investment.)
The deregulation allowed a few areas to retain regulated rates, such as in Austin. In these territories, the electricity rate has stayed closer to the average rate of about 10 cents per kilowatt-hour in the U.S. For those residents that have access to competitors (often more than a dozen), rates are only a little lower than the price to beat. For example, the lowest cost retailer in central Texas was charging 6.8 cents per kilowatt-watt (as of December 7, 2011).
If you live in any of these deregulated cities in Texas, most likely Electricity Express will be able to assist you.
The Electricity Express difference includes:
- Same day electricity service or connection
- No credit check.
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- No deposit, instead pay as you go
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- and much more.
Call Electricity Express today at 855 781 6970.
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Aditional resources: ChooseEnergy.com