Texas’ energy market has been deregulated for over ten years, as a result of Texas Senate Bill 7. This bill deregulated the market over a period of several years, and has attracted its share of supporters and critics. Praise and detraction aside, why was Texas Senate Bill 7 put into place? What caused Texas’ deregulation?
For starters, it’s important to look at Texas’ market before the bill. Texas has an enormous electrical demand– if it was an independent nation, it would have the 11th highest demand in the world. This means that electrical companies, like those found at www.electricitycompaniestexas.com/, would have an enormous potential customer base to compete for, provided they had the impetus to do so.
The aim of deregulation was to create an environment that would allow customers to choose their electrical provider, which would lower costs for consumers by forcing electrical compete to compete based on price. Competition within the market would also allow the companies with the best service and most reasonable prices to grow and expand their service areas, further helping Texans have access to power without paying exorbitant rates. On the whole, Texas’ deregulation reads like a measure to help break up energy monopolies and inject some healthy competition into the marketplace. Studies show that the cheapest offers on the market now are priced less expensively than they would have been prior to deregulation.
While this vision offers some compelling arguments in favor of deregulation, the reality hasn’t always been so rosy. While many people and Texan energy manufacturers have been able to enjoy lower prices, data compiled by the U.S. Energy Information Administration shows that Texas’ energy prices were 17 higher than the national average in 2009. The Texas Coalition for Affordable Power argues that typical consumers paid as much as 3,000 in extra costs in the decade following deregulation, for a cumulative cost of 11 billion.
Financial setbacks have also prevented electricity manufacturers from being able to keep up with Texas’ need for energy, further influencing price and distribution concerns as they scramble to keep up with demand.
Texas’ reasoning behind deregulating their energy market is fairly simple– it would theoretically help lower prices for consumers. Unfortunately, the debate about whether or not deregulation has actually benefited Texas continues.
Posted by admin on September 21st, 2013 filed in Uncategorized |
Quality insulation can save you a significant amount of money on heating costs and reduce your impact on the environment. The use of insulation made from green products is growing in popularity across the country. Green insulation is made from either recycled materials or materials that cause less strain on the environment.
Traditional insulation materials can contain harmful chemicals like formaldehyde. Insulation made from recycled materials are often chemical free. There are several different types Read the rest of this entry »
Posted by admin on June 20th, 2013 filed in Uncategorized |
Reducing the amount of power your household consumes can can several important economic and environmental benefits. Learning more about the appliances, habits and changes that can make a greater impact in your efforts to consumer less electricity can be an important step towards creating a more sustainable home and lifestyle. Failing to consider the means and options you have for reducing your electric consumption may find you with higher monthly utility bills and no way to limit the harm your lifestyle may be having on the environment Read the rest of this entry »
Posted by admin on June 18th, 2013 filed in Uncategorized |
Cutting back on the amount of energy used can benefit any family. Parents who have children at home can relate to what it is like going from one room to another in a home turning off light switches that children have left on long after leaving the room.
Not only does this run down light bulbs, it also generates more electricity usage that drives up the home’s energy bill. Resorting to using natural lighting as much as Read the rest of this entry »
Posted by admin on June 16th, 2013 filed in Uncategorized |
If your power bills are forcing you to make financial sacrifices in other areas, it is time to find a way to reduce your energy usage. These seven tips will help you save money on your monthly power bill.
1. Run your high-energy appliance such as your dishwasher, washing machine and dryer during off-peak hours. Hang your clothes whenever possible to avoid using the dryer.
2. Organize your refrigerator so you don’t have to leave the door open as long Read the rest of this entry »
Posted by admin on June 12th, 2013 filed in Uncategorized |
Buying an energy efficient water heater is going to save you a lot of money every single month. The problem that a lot of homeowners have is that they do not realize just how expensive it is for them to run the water heater in their home. This results in them having to spend more on the appliance than they had initially wanted so that they are not able to stay on budget. This can add up over Read the rest of this entry »
Posted by admin on June 10th, 2013 filed in Uncategorized |