subject: Learn From Texas Electricity Deregulation [print this page] Deregulation of electricity is now the in thing in a lot of states in the United States of America. Gone are the days when the residents do not have the power to choose the best deal and the energy provider they like. Now, they are freer in their options. Deregulation has a lot of benefits given to the residents and most states look towards Texas as a model of the concept.
Different states have their own terms and conditions when it comes to individual energy providers but one thing remains certain, the consumers now have the options. Texas spearheaded the deregulation trend knowing that it is the state with one of the most expensive electricity rates before. Competition breeds better quality of service, better prices and better rates for Texas residents so other states followed suit.
It was in 1999 when the deregulation law was signed by then President George Bush. Retail electricity providers (REPs) increased throughout the years giving the residents more options in terms of energy source. The providers have their own sources, deals and components so it is up to the consumer to decide.
Statistics show that Texas greatly benefited in the deregulation process. More than 680,000 consumers are reportedly happy with the current situation. There is also 1.5 billion dollars in savings all in all. Electricity deregulation is not only applauded by the residential community but also by the business sector. About 90% of the industrial corporations already switched to REPs.
Among all the states that are already in the deregulation implementation stage, Texas has the best standing of them all. This report on Texas utilities is made possible by the Center for the Advancement of Energy Market. Texas ranked first in the Retail Energy Deregulation Index or the RED Index.
Other markets that are still finding their way in implementing deregulation of electric utilities can base from the successful model of Texas. Texas has a lot of sources available for its residents such as natural gas, coal powered generator and wind energy production. The latter can produce about 9410 megawatts capacity, a figure higher than that in Washington, Iowa and California combined.
