Texas Coalition for Affordable Power: Despite Persistent Price Gap, Competitive Electricity Market Makes Gains in Texas

AUSTIN, Texas–(BUSINESS WIRE)–#buyingelectricity–Average residential electricity prices in areas of Texas with retail
electric competition declined during a recent 10-year period, while
average prices in deregulation-exempt areas increased.

And although residential electric prices in areas with retail electric
competition have remained consistently higher, on average, than prices
in deregulation-exempt areas ÔÇö the annual percentage price gap between
these two areas has dwindled to the narrowest point ever.

These findings and more are included in a new Snapshot Report on
Electricity Prices by the Texas Coalition for Affordable Power
(TCAP). Taken together, the developments suggest the 16-year-old
deregulated retail electricity market is delivering some of its best
results so far for Texas residential consumers.

However, the news is not all good for Texans living in areas with retail
electric competition. Year after year, average residential prices in
deregulated areas of Texas have remained higher than those in areas
exempt from deregulation.

TCAP has posted its new analysis on the coalitionÔÇÖs website, tcaptx.com,
at this link.

ÔÇ£We have been conducting this report for years, and this is the most
encouraging one yet for Texans living in areas with retail electric
deregulation,ÔÇØ said Jay Doegey, TCAPÔÇÖs executive director. ÔÇ£Average
deregulated prices continue their decline ÔÇö and while those prices have
been consistently higher than prices in non-deregulated areas, the gap
is the smallest weÔÇÖve seen. This is good news for Texans purchasing
power from competitive providers.

ÔÇ£However, given that the price gap has stubbornly persisted, itÔÇÖs clear
that the deregulated market could do better,ÔÇØ he added.

Under the stateÔÇÖs retail electric deregulation law, consumers living in
about 85 percent of Texas can shop for electricity in much the same way
they can shop for cell phone service. Residents in the remaining 15
percent of Texas do not have options for service, and instead must
purchase electricity from a single deregulation-exempt provider in their
area.

This bifurcated system ÔÇö with some Texans receiving service in
deregulated areas, and others receiving service in areas exempt from
deregulation ÔÇö provides a unique opportunity to compare prices.

The new TCAP
Snapshot Report also reveals that rates charged by the stateÔÇÖs two
largest transmission and distribution providers have increased beyond
the level of inflation, and that these transmission and distribution
rates comprise a larger proportion of home residential bills than they
did previously.

You can find the new Snapshot Report on Electricity Prices and other
TCAP reports at TCAPTX.com.

ABOUT TCAP

TCAP is
a coalition of more than 160 cities and other political subdivisions
that procure electricity in the deregulated market for their own
governmental use. Because high prices can undermine municipal budgets
and the ability to fund essential services, TCAP, as part of its
mission, actively promotes affordable energy policies. Sign up for
TCAPÔÇÖs free online newsletter at this link.

Contacts

Texas Coalition for Affordable Power
R. A. Dyer, 512-322-5898
[email protected]