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.
To that end, deregulation laws were introduced in Texas in 2002, such that now, most Texas citizens can choose their electric providers. That means more competition, and THAT means that customers are once again in control. Deregulation means better customer service, better pricing, and a chance to use renewable energy sources instead of entrenched but “bad for the environment” and nonrenewable energy sources.
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.
About 75% of today’s citizens in Texas can choose their own power providers, and to some extent, this also controls how much they pay. It also helps them choose where they get their power from and the level of service they enjoy. Private consumers and businesses alike are benefited by this, because when businesses benefit, their customers benefit, too.
That’s because when businesses get the ability to choose who provides their electric service, this means lower utility costs and better service for them — and that means lower costs for them, too. That means those businesses can pass their cost savings onto their customers.
Even with this improvement, of course, there are still some 25% of electric consumers in Texas who do not get the benefits competition provides. Large cities like Austin and San Antonio, for example, are among those who do not experience the benefits of deregulation, and areas that use electric cooperatives also are exempt from deregulation practices.
Even so, electric utility providers are still performing positive changes. Renewable energy sources continue to be experimented with, implemented where possible, and continually developed. For example, wind farms are springing up statewide and are one way of providing completely renewable and clean energy that can be converted for electrical needs.
If you live in Texas and you can take advantage of deregulation, make sure you do. Choose your provider by making sure you shop around for a company that’s best going to suit your needs. For example, many websites provide “real time” cost comparisons between providers so that you can shop around just by going online and doing some research, easily.
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.
One important thing to be aware of is that your new company will not be taking over responsibility for any final bills from the old company. Make sure you take care of old bills from your old company, and you should be set. Other than that one small detail, your change from one electric provider to another should be absolutely automatic and painless. Simply choose your new provider, and enjoy the benefits electric competition deregulation can bring.
About the author: Jerry Dyess has been in the Texas Electricity business for the past 7 years. He has published many articles on Texas Electric prices.
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