| Texas Is America's Blueprint for Electric Deregulation |
| Articles - Savings |
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Monopolies aren't good for customers, just companies. That's true of electric companies, too. With monopolies, customers are simply left to put up with what they've got in front of them, service from one company. This gives companies all the advantage, and none of the difficulty. It also lets them drive prices up such that they can make profits without having to provide significant value to consumers.
Monopolies aren't good for customers, just companies. That's true of electric companies, too. With monopolies, customers are simply left to put up with what they've got in front of them, service from one company. This gives companies all the advantage, and none of the difficulty. It also lets them drive prices up such that they can make profits without having to provide significant value to consumers. 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. Today, about 75% of the citizens in Texas have the ability to choose the power companies they want, and thus to control at least to some extent how much they pay, where they get their power from, and the level of service they receive. This benefits businesses as well as private consumers, and when businesses benefit, that business's customers benefit, too. 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. Even with deregulation improvement, of course, about one fourth of Texas' electric consumers don't enjoy the benefits of deregulation and competition. Large cities such as San Antonio and Austin don't have deregulatory benefits, and electric cooperatives are also exempt from deregulation. 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 live in an area where you can choose your provider, the best way to make sure deregulation stays in place is to utilize its benefits. Shop around for the company that's going to suit you and your family. In some cases, like on ChooseEnergy.com, you can actually compare prices in real time between companies, all on the same website. Even if you can't compare prices in real-time from one website, you can certainly shop around online with just a click of the mouse. Once you've done your homework and have chosen the company you want to provide your electric service, you simply place your order with that company, and they'll send you information on your rights as a customer. Your new provider will also send you a terms of service agreement, and you won't have to contact your old provider, either. You're new provider will simply handle the change of service and you'll get a notice about the change of service in your mail. Your service will actually change at your next meter reading. However, do be aware that your new company is not going to take over responsibility for the final bills from your old company. Take care of those bills yourself, though, and you should be fine. Besides that one small responsibility, there is no effort in switching companies, such that it should be absolutely painless and automatically done. Just choose your new provider, and enjoy the benefits of deregulation and competition. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. About the author: J. Dyess has been in the Texas Electricity business for many years. He has published many articles on Texas Electric prices. |