Since Deregulation, Texans Have Suffered Some Of Steepest Price Hikes In The Nation

A new report by the Cities Aggregation Power Project has revealed that Texans have suffered some of the steepest increases in electric prices seen in the nation since the retail electric market was deregulated here in 1999.

From CAPP:

Instead of paying rates below the national average – as was the case for years – Texans now pay above average rates. The report also finds that contrary to industry reports, the relatively high prices in Texas cannot be solely ascribed to the state’s reliance on natural gas to fuel generating plants.

“This new report clearly illustrates the need for reform,” said Jay

Doegey, chairman of the Cities Aggregation Power Project, the non-profit organization that sponsored the investigation. “Consumers are hurting. Lawmakers should take a long, hard look at these findings and  consider how best to provide relief for their constituents.”

CAPP releases the report just as lawmakers prepare to convene in Austin for the 81st Texas Legislature. Efforts to overhaul the state’s deregulated electricity market narrowly failed during the waning days of the 80th legislative session, in 2007.

The report is based on years of data compiled by the United States Energy Information Administration, an agency charged with collecting and analyzing information from the electricity, petroleum and natural gas industries. The report compares residential rates in Texas with residential rates in other states, compares prices in regulated and deregulated states, and looks on the impact of natural gas and prices.

Among the key findings:

*Even compared to residents in other deregulated states, Texans pay
too much. Residential electricity prices have increased by a greater
percentage in Texas than they have in any other deregulated state with retail
competition.

*Contrary to a common misconception, Texas’ dependence on natural gas to fuel many of its power plants cannot explain the state’s poor showing. The review shows that even when considering the effect of natural gas-fired generation, average residential rates were higher in deregulated states with retail competition than they were in states that never deregulated.

*Under deregulation, Texans have paid more for electricity and have suffered steeper rate increases than have residents of a neighboring regulated state that also uses a similar fuel mix to power its generators. This provides further evidence that reliance on natural gas generation does not explain the relatively high rates in Texas.

Related posts:

1. A&M Hikes Tuition
2. Electric Deregulation Produces No Worthwhile Results For Consumers
3. $29.95 Is Not The Price Of Hope
4. Hall’s Manure Deregulation Stirs Shitstorm
5. Right Wing War On Public Education & Texas Deregulation