Texans enjoyed electricity rates well below the national average for a number of years preceding deregulation. For the period '95 to '02, average annual prices fluctuated between 7.7 and 8.1 cents per kWh for the eight years. The system was cost plus then. Deregulation has simply added a new layer for profit taking. Yes, new jobs were created and that is good, but at the expense of Texas consumers.
After Texas restructured its market, prices have remained above the natural average until very recently. As of September 2010, the latest data available, shows the average price for the residential sector to be 11.49 cents/kWh. The U.S. average was 11.97. The commercial and industrial sectors had average prices of 9.07 and 6.11 respectively. Source: Energy Information Administration
We were promised lower rates after deregulation. What went wrong? Comments are invited.
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