Electricity market reform in Texas has, to a lot of degree, unfolded traditional vertically integrated electric utilities and precipitated entry by firms contending at either or both the wholesale and retail levels. According to the U.S. Energy Information Administration (EIA), by 2015 over 20% of U.S. electricity sales were derived from retail power marketers. Most evaluations of the reforms have focused on wholesale markets, where there are huge opportunities for productive competition in generation and consequent cost savings.
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.
Moreover, carrying out plenty of research into some of the different utility providers out there can help you to find the best deal for your needs. For example, if you are looking for ways to reduce your energy bills, it might be worth researching light companies with no deposit plans. Prepaid plans are often a useful way to save money on your utility costs. Ultimately, when using prepaid electricity plans, you are in control of how much and how often you top up your supply. Your payments are typically spread over a time period that suits you, in agreed amounts that you can afford, and some energy providers even offer this facility interest-free.