How has deregulation affected Galveston?
Here’s what the latest statistics from the U.S. Energy Information Administration show:
- Texas residential electricity rates are nearly 9.5 percent lower than the national average.
- Texas commercial electricity rates are nearly 26 percent lower than the national average.
- Texas industrial electricity rates are nearly 23 percent lower than the national average.
- Texas generates the most electricity of any state from wind.
- Texas generates the fifth-highest amount of electricity from solar energy.
On January 1, 2002, Texas passed a bill that deregulated the energy market. Although this may sound confusing, the bill is beneficial to consumers because it has led to less expensive energy rates. Prior to the passage of energy deregulation, a single company was responsible for transmitting, delivering, collecting payment and selling energy in Galveston. While this may seem like it makes the process simpler, it actually had the reverse impact because this single utility company had a monopoly on the energy market. This means that the energy company was free to charge any price it wanted. See prices in your area and make the choice that’s right for you.
High demand this summer has placed stress on the Texas electricity grid and driven up wholesale prices. What’s it all mean for savvy Texas electricity customers? That energy rate increases in Texas aren’t going away. Record demand pushed up prices on the wholesale electricity market in mid-August, and those drastic spikes will find their way into rates into the fall.
What’s a Galveston resident to do? Lock in some rate protection now. Enter your ZIP code now and find rates that you’re comfortable with. Remember, however, that if you’re currently in a contract, you could face an early termination fee if you sign up for a new plan.