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Texas Coalition For Affordable Power Releases Updated Report On History Of Texas Electric Choice

September 26,2019



The Texas Coalition for Affordable Power has released an updated version of its report, Electric Deregulation in Texas: A Market Chronicle, which examines the history of Texas electric restructuring to date.

The latest report updates a 2009 report

Included are previously reported analyses of Texas electric rates by TCAP. As previously reported, TCAP recently reported that, for 2017, deregulated Texas electric rates for all customer sectors combined -- that is, residential, commercial and industrial -- were 7.9 percent lower in areas of Texas with competition than corresponding combined rates in areas without it (story here) TCAP earlier this year reported that, during 2017, the average residential deregulated electricity price inside ERCOT stood at 11.10 cents per kilowatt hour. The average residential prices in those ERCOT areas exempt from deregulation (such as in the service territories of electric cooperatives and municipal utilities) was 10.77 cents per kWh in 2017

TCAP said that the findings in the 2019 edition of its market chronicle include:

• "Texans in deregulated areas historically have paid more for residential electricity than have paid Texans outside deregulation. In recent years, however, residential prices in deregulated areas have dropped while they have slightly increased in areas outside deregulation. As a consequence, a long-standing gap between residential prices paid in deregulated and non-deregulated areas has nearly vanished."

• "Customer complaints logged with Texas regulators increased dramatically after the implementation of the deregulation law, but like electricity prices, have fallen in recent years.

• "Transmission and distribution rates have increased at a pace greater than inflation. Although these rates remain regulated, they contribute to electricity costs in deregulated areas."

• "Deregulation-related charges known as stranded costs added nearly $7 billion to consumer bills."

TCAP's book, organized chronologically in a year-by-year fashion, is available through free digital download via TCAPtx.com.

Tags:
Texas   Electric Rates   TCAP  

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