RSSDeregulation In Texas Benefits Businesses And Consumers
Dec 16
Texas deregulation, Electricity, energy, Texas No Comments
Texas lawmakers knew they were taking a big step when they deregulated the state’s retail electricity industry back in 2002. Although other states deregulated their energy at roughly the same time, some of those states are now considering adding regulations back into the way their power industry operates. Texas, however, has never regretted its deregulation. While electricity transmission wires and poles in this state are still regulated, there is no doubt that retail and wholesale electricity will stay competitive in Texas. In truth, the end of the monopolies held by the electricity utilities has resulted in many benefits for both consumers and businesses. Texas lawmakers feel that the step they took by deregulating the industry has made the state stronger as a whole.
According to research economist Dr. M. Ray Perryman, the Texas businesses, consumers and governments that swtiched power providers following deregulation saved more than 815 million dollars in the course of one year. As an example, in 2002 the state itself paid about 20 billion dollars in electricity bills, while the five deregulated small town services areas and residential services areas only accounted for 12 billion dollars of that year’s energy expenses.
Similarly, Dr. Perryman estimated that the deregulation put more than 11,000 jobs on the market at a time when the jobs were sorely needed. With an expectation that the need for these jobs would grow, there was also the figure that this gave Texans an extra 2 billion dollars to put into the economy thanks to the increased discretionary income. Similarly, there would be better productivity through lower power costs and impressive effects that would continue to branch out from this. With figures like this, there are a number of different options that companies can now explore. This is something that many companies never had the expense accounts to take on in previous years.
It is interesting to see where the switches are occurring. While private residents are not so interested in switching to retail electricity providers who have only offered them a marginally competitive price, the bigger businesses are definitely taking note. Think about the fact that there are businesses where between five to ten percent of their expenditures lie with electricity and power; this significant sum could definitely take some shaving and with the companies saving money on their heretofore untouchable power bills, the possibilities for new operations, more workers and more expansion is impressive.
Although the wholesale energy market still must be addressed, it is quite clear that Texas as a state has benefitted from its deregulation of electricity. If you are someplace where you can see the ways you could benefit from the state’s deregulation of electricity, you will find several areas you can invest in which have never been available to you in the past.
Author: Jerry Dyess has been in the Texas Electricity business segment for the past 7 years and published many articles on Texas Electric news.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.