Electricity is getting cheaper in Texas, except in non-competitive areas

Lubbock’s non-competitive market demonstrates differing trends.

Robert Pratt

“Between 2006 and 2015, the last year for which data is available, residential electric prices for Texans who live in a competitive market decreased by 17.4 percent, while prices increased by 5.5 percent in other areas,” the Texas Tribune reported.

Where are those “other areas” in Texas? For one, places such as Lubbock where electric utility customers are held hostage to a municipal  utility.

And if you still think this competitive electricity market is some novel experiment you might want to know that “about 85 percent of Texans can purchase electricity from a number of providers in a deregulated marketplace, while the remaining 15 percent must buy power from a single provider in their area,” the Tribune pointed out.

That’s right, only 15 percent of Texans live where they can only buy electric power from a sole provider such as a municipal utility.

Again, you should note that the average residential electric prices for Texans in competitive markets, about 85 percent of Texans, decreased by 17.4 percent between 2006 and 2015, while average prices went up by 5.5 percent for the 15 percent of Texans hostage to a sole provider such as a municipal utility.

Take Lubbock for example. It’s citizens are told how lucky they are to be hostage to Lubbock Power and Light and yet while costs have been trending down statewide in competitive markets, Lubbock ratepayers are suffering with annual increases on a multi-year plan designed to purposefully raise rates. They’ll be paying much more to fund the tie-in to the ERCOT electric grid too.

The facts are clear, competitive electric markets lead to choice and lower rates. The 15 percent of Texans who are not allowed choice pay higher rates and support a less efficient industry.