However, some desired efficiency gains from the reforms require retail prices to dutifully reflect wholesale prices. In this paper, data from Texas, was used to evaluate the effect of reforms on the retail market. The Texas Legislature initiated electricity market deregulation with the Public Utility Regulatory Act of 1995, amended by Senate Bill 373, which made room for competition in the wholesale market.
Texas Senate Bill 7, passed in 1999, further reformed the Electric Reliability Council of Texas (ERCOT) electricity market by “unbundling” vertically integrated utilities into three separate entities: a power generation company, a transmission and distribution utility and a retail electric provider. Utilities overseen by local political authorities, such as municipally-owned utilities and electric cooperatives, were given a choice to “opt-in” to competition, but were not required to do so.
What this invariably means for the common man, is that, like never before has there been a stiff competition to get the average consumer’s attention. Every electrical distribution company in Texas, both those at the wholesale level and those at the retail level are fighting to become the best, but it is beneficial for one to choose wisely. With so much electrical distribution companies out there, it is hard to know which one to choose from. But don’t be perturbed, like the saying, “the proof of the pudding, is in the eating”. There is a simple approach to determining which electrical distribution company one should subscribe to. One just needs to compare all Texas electrical ratings and their corresponding features to determine which electrical company he or she wants to subscribe to. It’s just as simple as that