The Houston Chronicle has published an editorial blasting Texas generators for seeking government interference in the market to result in higher prices -- whether that be through administratively triggered higher energy prices, or through a capacity market

The Chronicle reaches this inescapable conclusion from such pleas (conclusions that have been noted before following similar logic) -- if the free market can't support investment in new generation, then deregulation is a failure (and the next logical question is, if some sort of administrative assurances are needed to build new generation, what do customers get in return?)

And running around claiming that Texas -- the United States' most competitive market -- doesn't support generation investment also doesn't do any favors for those trying to open (or keep open) new markets, and Texas generators' chicken-little attitudes have been seized upon by market foes from Arizona to Michigan to keep generation under regulated planning -- with no customer choice

Of course, deregulation hasn't failed, which is why we must take any angst from generation owners over allegedly insufficient pricing with a grain of salt. The same thing was said five years ago, yet, as expected under a true market, new generation has been built when needed. Indeed, over the past decade, ERCOT is the only market to see consistent new build -- in stark contrast to other markets with administrative pricing mechanisms like capacity markets.

The Chronicle also bemoans an alleged "premium" paid by customers in deregulated Texas areas, but compare the 10-11¢ rates (at 1,000 kWh) of CPS and Austin Energy with competitive offers on Power to Choose (5¢ with no gimmicks, and even cheaper for risk takers), and the benefits of customer choice are unmistakable

See the Houston Chronicle for the editorial