A new study shows deregulation is working to lower electric rates in Texas. According to the Texas Coalition for Affordable Power, prices for those living in Houston and other competitive markets dipped more than 17 percent over the past ten years – but are still not the lowest in the state.
“The good news is that people's rates are lower, and the lowest they've been since the start of electric deregulation, but areas that remain regulated in Texas still have better rates,” says Jay Doegey, executive director of TCAP.
The price gap between deregulated and regulated areas is shriking thanks in part to new fracking technology and the growing use of wind and solar.
“Fracking technology increased the amount of natural gas that was available and that increased the supply and availability of electricity so much that prices went down,” says Doegey.
“The percentage of reliable energy that is provided to the power grid is 20 percent or more, and in some peak days it has gotten up well over 20.”
Overall, the average price for electricity in Texas is well below the national average.