Texas seeing gains from deregulation, even when prices rise

A huge number of factors play into the changes in electricity prices, and in general electricity rates are inclined to rise over time.

Writing for the Houston Chronicle, Association of Electric Companies of Texas president and CEO John Fainter noted that while electricity rates have risen in Texas since the passage of electricity deregulation, they have actually fallen below the national average.

Some have noted that the electricity rates in deregulated markets are generally higher in Texas than areas that are restricted, but these also tend to have been the areas already suffering from high prices. Meanwhile, Fainter notes that the lowest available prices from alternate electricity providers can prove dramatically lower than both the state average and even the least expensive states in the country.

“Since 2007, nationwide prices outside Texas have risen by 21 percent, while, within the state, prices have fallen by six percent,” Fainter notes. “Over the same period, the average lowest competitive price has fallen by 34 percent.”

The Public Utility Commission of Texas reports that 115 retail electricity provider do business throughout Texas, so while some prices are higher than others, competition has forced each of them to offer their own innovative products.