When Texas lawmakers deregulated the retail electricity industry in 2002, they knew they were taking a big step. While several of the other states who deregulated their power at the same time are now looking into adding some regulations to the way their power runs, Texas has never looked back, and in this state, retail and wholesale electricity are sure to remain competitive, while electricity wires and poles are still regulated. The truth of the matter is that the end of the utility monopolies has been an impressive boon to both businesses and consumers, and Texas lawmakers feel that the step has made the state as a whole stronger.
According to research economist Dr. M. Ray Perryman, the Texas businesses, consumers and governments that swtiched power providers following deregulation saved more than 815 million dollars in the course of one year. As an example, in 2002 the state itself paid about 20 billion dollars in electricity bills, while the five deregulated small town services areas and residential services areas only accounted for 12 billion dollars of that year's energy expenses.
Dr. Perryman also estimates that the Texas deregulation added more than 11,000 jobs to the market at a time when those jobs were desperately needed. Expecting that the need for these jobs would grow, and thanks to the increased discretionary income resulting from the additional jobs, the numbers showed that Texans had an extra 2 billion dollars to put back into the state's economy. Likewise, productivity would increase because of lower electricity costs, and more positive effects would continue to stem off from this. With these kinds of numbers, businesses now have a variety of options to explore. In previous years they were unable to look into these options because of budget constraints.
It is interesting to see where the switches are occurring. While private residents are not so interested in switching to retail electricity providers who have only offered them a marginally competitive price, the bigger businesses are definitely taking note. Think about the fact that there are businesses where between five to ten percent of their expenditures lie with electricity and power; this significant sum could definitely take some shaving and with the companies saving money on their heretofore untouchable power bills, the possibilities for new operations, more workers and more expansion is impressive.
Texas still needs to address its wholesale power market, but it is clear that the deregulation of electricity has benefitted Texas as a state. If you are in a place where you are able to see how you could benefit from the state's energy deregulation, now there are several different areas where you can invest which previously were closed to you. - 30558
According to research economist Dr. M. Ray Perryman, the Texas businesses, consumers and governments that swtiched power providers following deregulation saved more than 815 million dollars in the course of one year. As an example, in 2002 the state itself paid about 20 billion dollars in electricity bills, while the five deregulated small town services areas and residential services areas only accounted for 12 billion dollars of that year's energy expenses.
Dr. Perryman also estimates that the Texas deregulation added more than 11,000 jobs to the market at a time when those jobs were desperately needed. Expecting that the need for these jobs would grow, and thanks to the increased discretionary income resulting from the additional jobs, the numbers showed that Texans had an extra 2 billion dollars to put back into the state's economy. Likewise, productivity would increase because of lower electricity costs, and more positive effects would continue to stem off from this. With these kinds of numbers, businesses now have a variety of options to explore. In previous years they were unable to look into these options because of budget constraints.
It is interesting to see where the switches are occurring. While private residents are not so interested in switching to retail electricity providers who have only offered them a marginally competitive price, the bigger businesses are definitely taking note. Think about the fact that there are businesses where between five to ten percent of their expenditures lie with electricity and power; this significant sum could definitely take some shaving and with the companies saving money on their heretofore untouchable power bills, the possibilities for new operations, more workers and more expansion is impressive.
Texas still needs to address its wholesale power market, but it is clear that the deregulation of electricity has benefitted Texas as a state. If you are in a place where you are able to see how you could benefit from the state's energy deregulation, now there are several different areas where you can invest which previously were closed to you. - 30558
About the Author:
About the author: Jerry Dyess has been writing about the Texas Electricity market segment for many years and written articles on Texas Electric prices.
