Energy Deregulation in Texas

The History of Electricity Deregulation in Texas

Right at the beginning of the year 2002, the State Legislature of Texas made a significant decision to deregulate the electricity market in the state. It means the supply of electricity within the state would now be open to a lot of competition, and a huge variety of choices. 

Before the year 1975, all the cities in Texas used to regulate their electric utilities. This included adjusting the services as well as the rates they had to pay for the services. But then in 1975, the PURA (Public Utility Regulatory Act) came into being. This act enforced by the Texas Legislature aimed at giving more control and power to the state for regulating all the aspects of its electric utilities.

Since the cities in Texas already were controlling their rates and services, this act remained stationary and was not taken as seriously as they would have hoped. With a lot of monopoly playing out in the energy markets, PURA was not able to make a fair and reasonable market for the energy consumers of Texas. There were many reasons why the PURA was unsuccessful, and the energy consumption pattern was the most prominent one. The energy markets were also inflated, which resulted in the rates of electricity to rise.

In the year 1995, energy in Texas was finally deregulated, primarily due to the passing of Bill 373. This bill is passing resulted in significant changes in the ERCOT (Electric Reliability Council of Texas). After this, the utilities of Texas were required to give access to the transmission capabilities to independent energy generators. These utilities also needed to keep a check on the new suppliers since the unregulated market resulted in many different suppliers emerging.

Energy generation and consumption in Texas – 

  • In terms of residential electricity consumption, a regular average home in Texas consumes about 77 million BTU of electric energy each year. This figure is 14% less than the national average electricity use by a household.
  • Texas has the highest electricity bill in America, and this is because of the sweltering summers the state faces.
  • Air conditioning units use 18 % of the electricity used in a home in Texas.
  • 22% of the total electricity used in a home in Texas goes towards space heaters.
  • 19% of the total electricity used by a household in Texas is spent on water heating
  • The remaining 41% of the electricity is used up by electronics, appliances, and lighting in a home.
  • In terms of commercial and industrial electricity consumption of the state, Texas is one of the leading electricity consumers in the country.
  • The commercial industry uses up more than 12% of the state’s total energy.
  • The industrial sector uses 49% of the state’s total energy.
  • The transportation sector uses a little more than 24% of the state’s total energy.
  • Texas is the biggest lignite coal producer in the United States.
  • The petroleum refining sector in Texas contributes to 29% of the country’s total refining capacity.

How has energy deregulation benefited the people of Texas?

There are many advantages to having deregulated energy, and some of the biggest benefits are:

  • Money and energy savings

Now homes and businesses can opt for energy plans that fulfill their energy needs. They no longer have to adhere to the standard rates. They can assess their energy needs and only pay for how much energy they use. This leads to a great deal of energy as well as money savings.

  • More choice of energy plans

Thanks to a variety of energy suppliers coming up, consumers can choose from a wide range of companies offering different types of energy plans. They can choose from fixed-rate plans, floating plans, or even hybrid plans. The power to choose is very empowering, and every citizen deserves to select their source of power and pay only for how much energy they use.

  • Opt for renewable energy options

Consumers who care about greener energy options can now support eco-friendly energy suppliers. Solar and wind energy suppliers are now becoming increasingly popular. Consumers can switch their home or business to a greener energy source, and also reduce their carbon footprint.

  • Hassle-free switching

Switching from one energy company to another has never been simpler! You can check out our website and select a new plan from a new energy company, and we will work on the rest. And the best part, your energy services will face absolutely no interruption.

  • Excellent customer care

The increase in competition has resulted in companies continually upping their game. This means that the quality of customer care has gone up tremendously.

Electricity Providers in Texas – 

If you want to know about all the different electricity providers in Texas, then you must reach out to a reputed energy procurement service like Navigate Power. Contact Navigate Power by dropping us an email at [email protected].