Texas Is America's Blueprint for Electric Deregulation

By Jerry Dyess

Unfortunately, when companies get the chance to establish monopolies so that customers no longer have competition they can choose from, the companies are the ones with the advantage, such that consumers are simply left to put up with what they've been given; this gives companies all of the advantage, and they can drive prices up to make profits without having to provide significant value for customers at the same time. This is true for electric companies as well.

Because of this, electric companies have been reined in such that deregulation laws in Texas have been put in place as of 2002. Now, most citizens in Texas can choose the providers they want for their electricity. That gives more competition, which puts customers in control once again. Deregulation means better customer service, a chance to use renewable energy sources instead of the "same old, same old" nonrenewable, bad for the environment sources, and better pricing as well.

This wasn't always true. Before deregulation was put in place in Texas, a single utility provided service to an entire area and performed all duties of service, including destination, transmission and sales. Consumers were simply left to put up with what they were given, whether it was the best or not. Deregulation, however, has changed the landscape. Now, one company usually handles transmission and distribution, with other companies handling sales and billing. This gives consumers choice, so they can choose the providers they want to provide service to them. The entire process is overseen by the Public Utility Commission, so that problems are taken care of immediately, before they become major difficulties.

Approximately three fourths of today's Texas citizens can choose their own utility providers, which means that they also control what they pay, to some extent. They can choose where they get their power from and what level of service they want as well. Businesses and private consumers alike benefit from this, because when businesses receive this kind of value, their customers also benefit.

That's because when businesses get the ability to choose who provides their electric service, this means lower utility costs and better service for them -- and that means lower costs for them, too. That means those businesses can pass their cost savings onto their customers.

Even with deregulation improvement, of course, about one fourth of Texas' electric consumers don't enjoy the benefits of deregulation and competition. Large cities such as San Antonio and Austin don't have deregulatory benefits, and electric cooperatives are also exempt from deregulation.

Even so, electric utility providers are still performing positive changes. Renewable energy sources continue to be experimented with, implemented where possible, and continually developed. For example, wind farms are springing up statewide and are one way of providing completely renewable and clean energy that can be converted for electrical needs.

If you live in Texas and you live in an area where you can choose your provider, the best way to make sure deregulation stays in place is to utilize its benefits. Shop around for the company that's going to suit you and your family. In some cases, like on ChooseEnergy.com, you can actually compare prices in real time between companies, all on the same website. Even if you can't compare prices in real-time from one website, you can certainly shop around online with just a click of the mouse.

Once you've done your homework and have chosen an electric provider that meets your needs the best, and at the best possible prices, you simply place your order with the company; you should expect to receive information from them on your rights as a customer, and the terms of service agreement from your new provider as well. You don't have to contact your old provider to discontinue service, either. Your new provider will handle that, and you'll simply get a notice of service change in the mail. Actual change of service will happen at your next meter reading.

It should be noted that your new company will not be assuming responsibility for sending you your final bills from the old company, so make sure you address those and get them taken care of. Other than that, though, the change is completely seamless and automatic. You simply choose your new provider, and the wheels are set in motion so that you can enjoy the benefits of going with an electric provider you've chosen. - 29939

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