Monday, October 19, 2009

Deregulating Texas Electricity

The blog "Texas Electricity: Lower Prices, greater consumer choice" written by Emma Pickering, discusses the Austin-American Statesman's position on the deregulation of the State's electrical suppliers creating higher utility rates for the State's residents.
In her blog, Ms. Pickering brings to light the fact that the Statesman's report was based on incomplete and therefore inaccurate data between the years of 1999 and 2007. It seems that the Statesman based its calculations on an article prepared by the Cities Aggregation Power Project (CAPP). In brief, the report used figures dating back to 2002 before electricity was fully deregulated. I would agree with Ms. Pickering in that based on this fact alone, one cannot accurately conclude what, if any, the increases are.
As a Texas consumer, I feel that increasing choices in the marketplace is ultimately more beneficial in not only savings, but service as well. Ms. Pickering further outlines the vast choices deregulating has opened up. More specifically Texas has gone from four providers in 2002 to twenty-eight providers in 2007.
Ms. Pickering also brings light to the fact that among the five largest states electricity rates in Texas rank in the middle.
It is obvious at this early juncture that it is impossible, if not irresponsible, to declare that deregulating electricity has caused an increase to Texas consumers.
I was impressed by Ms. Pickering's consideration of important factors which the Statesman either chose to gloss over or simply ignore.
Her blog was not particularly long, nor did it go into great depth, but the points she raised were eye catching and of interest to every Texas consumer; and gave them a better understanding on the issues of electricity deregulation. Ms. Pickering summarized it best when she concluded with, " deregulation has helped Texas electricity consumers by opening the market to competition, boosting consumer choice, and at least holding the line on prices."

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