When Texas lawmakers deregulated the retail electricity industry in 2002, they knew they were taking a big step. While several of the other states who deregulated their power at the same time are now looking into adding some regulations to the way their power runs, Texas has never looked back, and in this state, retail and wholesale electricity are sure to remain competitive, while electricity wires and poles are still regulated. The truth of the matter is that the end of the utility monopolies has been an impressive boon to both businesses and consumers, and Texas lawmakers feel that the step has made the state as a whole stronger.
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.
He also estimated that energy deregulation by Texas added more than 11,000 jobs to the market at a time when the need for additional jobs was severe. With the expectation that the need for new jobs would grow, and due to the added discretionary income resulting from the new jobs, the figures showed that the people of Texas had an extra 2 billion dollars to put into the state's economy. Similarly, productivity would improve through lower electricity costs, and some impressive benefits would continue to appear as a result. These kinds of numbers are providing companies with several new options to explore. Before deregulation, businesses were unable to do this because their energy expenses would never allow it.
It is interesting to look at where the switches in Texas energy companies are taking place. Private residents are not really interested in changing their retail electricity providers when they are offered prices that are just barely competitive. The bigger businesses, however, are clearly noticing the opportunities to save money provided by deregulation. The energy costs of some businesses range between five and ten percent of their total operating expenses. If companies can lower their electricity costs by switching providers they will save money in a way that previously was unavailable. The potential savings open up an impressive array of opportunities for these businesses, includiing business expansion, hiring new workers and additional operations.
Texas still needs to address its wholesale power market, but it is clear that the deregulation of electricity has benefitted Texas as a state. If you are in a place where you are able to see how you could benefit from the state's energy deregulation, now there are several different areas where you can invest which previously were closed to you. - 29939
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.
He also estimated that energy deregulation by Texas added more than 11,000 jobs to the market at a time when the need for additional jobs was severe. With the expectation that the need for new jobs would grow, and due to the added discretionary income resulting from the new jobs, the figures showed that the people of Texas had an extra 2 billion dollars to put into the state's economy. Similarly, productivity would improve through lower electricity costs, and some impressive benefits would continue to appear as a result. These kinds of numbers are providing companies with several new options to explore. Before deregulation, businesses were unable to do this because their energy expenses would never allow it.
It is interesting to look at where the switches in Texas energy companies are taking place. Private residents are not really interested in changing their retail electricity providers when they are offered prices that are just barely competitive. The bigger businesses, however, are clearly noticing the opportunities to save money provided by deregulation. The energy costs of some businesses range between five and ten percent of their total operating expenses. If companies can lower their electricity costs by switching providers they will save money in a way that previously was unavailable. The potential savings open up an impressive array of opportunities for these businesses, includiing business expansion, hiring new workers and additional operations.
Texas still needs to address its wholesale power market, but it is clear that the deregulation of electricity has benefitted Texas as a state. If you are in a place where you are able to see how you could benefit from the state's energy deregulation, now there are several different areas where you can invest which previously were closed to you. - 29939
About the Author:
About the author: Jerry Dyess specializes in Texas Electricity and has published many articles on Texas Electric rates.
