Dive Brief:
- Texas customers in deregulated markets are now consistently paying under the national average, according to a new report from the Texas Coalition for Affordable Power (TCAP).
- But while the deregulated portions of the state are improving, the report also finds that areas where rates remain regulated, customers are paying even lower prices.
- TCAP's analysis found Texas customers in deregulated areas would have saved more than $23 billion from 2002 to 2013 had they been in regulated markets.
Dive Insight:
The encouraging news is that deregulated markets are improving in Texas -- and an increasing number of good deals are available for customers willing to search. For the first time, deregulated residential electricity prices have remained below the national average for two consecutive years. But Texas customers in regulated markets continue to pay lower rates than their deregulated neighbors, according to TCAP.
“Texans living in deregulated areas have paid too much for electricity — and the lost savings has been substantial,” TCAP Executive Director Jay Doegey said in a statement. “But the deregulated market is improving, and the good news is that if you shop carefully, you can find good deals. These relatively low-cost deals are more common than they were in previous years.”
Most of Texas customers can choose their electricity provider, but about 15% of the state remains regulated. TCAP said the split system allows for a unique comparison of rates, showing average residential electricity prices in deregulated areas remained higher than average prices outside deregulation for every year from 2002 through 2013.
The "lost savings" amounted to more than $4,800 for a typical household, or more than $23 billion overall.
The report also found that rate increases by Oncor, operating in the Dallas-Fort Worth area, and CenterPoint Electric, in Houston, have both outpaced inflation since 2003. CenterPoint's non-bypassable monthly charges rose from $24.61/month, on a 1,000 KWh monthly bill, to $43.94 this year. TCAP said the same charges in Oncor's service territory rose from $23.01/month to $38.59.