Electric Deregulation in Texas
It’s a known fact that when electric companies (or any company, for that matter) get the chance to establish a monopoly such that consumers have no competition to choose from, the companies themselves hold all the cards and the unfortunate consumers are left to take what they can get, at whatever price the company deems necessary for profit.
Because of this, electric companies have been reined in such that deregulation laws in Texas have been put in place as of 2002. Now, most citizens in Texas can choose the providers they want for their electricity. That gives more competition, which puts customers in control once again. Deregulation means better customer service, a chance to use renewable energy sources instead of the “same old, same old” nonrenewable, bad for the environment sources, and better pricing as well.
It wasn’t always that way; before deregulation took hold in Texas, a single utility would provide service to an entire area, including sales, transmission, and distribution. That meant consumers had no other options but to take what they got. Deregulation has changed that, such that now, one company can handle the transmission and distribution of electricity within a given area, but other companies take over billing and sales. For consumers, this gives choice, such that they can choose the providers they want to work with. The Public Utility Commission oversees the entire process, to forestall any problems that may arise.
Approximately three fourths of today’s Texas citizens can choose their own utility providers, which means that they also control what they pay, to some extent. They can choose where they get their power from and what level of service they want as well. Businesses and private consumers alike benefit from this, because when businesses receive this kind of value, their customers also benefit.
That’s because when businesses can choose their own electric service providers, they get better service and lower utility costs, which lowers their own costs. In turn, they usually pass this cost savings onto their own customers.
At present, some 25% of Texas’ electric consumers still do not have the ability to receive the benefits of competition. That includes those in large cities like Austin and San Antonio, and those that use electric cooperatives.
Nonetheless, positive changes continue to be made in Texas when it comes to electric utility providers. Renewable resources continue to be explored and implemented, with wind farms, as one example, springing up all over the state as a means to provide clean, completely renewable energy that can be converted into electricity.
If you are a citizen of Texas and you live somewhere where deregulation is enforced, make sure you use it and utilize its benefits. Choose your provider by shopping around for the company that’s best going to suit you and your family’s needs. Many websites, like ChooseEnergy.com, also provide tools whereby you can choose a company by comparing between companies with real-time pricing data. This allows you to shop around just by going online and comparing different companies with ease.
Once you’ve done your homework and have chosen an electric provider that meets your needs the best, and at the best possible prices, you simply place your order with the company; you should expect to receive information from them on your rights as a customer, and the terms of service agreement from your new provider as well. You don’t have to contact your old provider to discontinue service, either. Your new provider will handle that, and you’ll simply get a notice of service change in the mail. Actual change of service will happen at your next meter reading.
It should be noted that your new company will not be assuming responsibility for sending you your final bills from the old company, so make sure you address those and get them taken care of. Other than that, though, the change is completely seamless and automatic. You simply choose your new provider, and the wheels are set in motion so that you can enjoy the benefits of going with an electric provider you’ve chosen.
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