AUSTIN, Texas–(BUSINESS WIRE)–#consumers–Average residential electricity prices in areas of Texas with retail
electric competition have declined during a recent 10-year period, while
simultaneously increasing in areas exempt from electric competition, according
to a new
report from the Texas Coalition for Affordable Power.

Moreover, the average price of electricity for residential customers in
areas with retail electric competition dipped below the national average
during 2015. This marked the third such occasion in four years that
average residential electricity prices in those areas fell below the
national average, according to the report.

But the news is not all good for Texans livings in areas with retail
electric competition. For instance, average residential electricity
prices have remained consistently higher in those areas, as compared to
deregulation-exempt areas. This has been true for every year for which
data exist to conduct this analysis.

Texans in deregulated areas could have saved thousands of dollars
individually — and billions of dollars in the aggregate — had they paid
the same average prices as those observed in areas exempt from the
deregulated system, according to the analysis.

These good news-bad news findings are included in a new Snapshot Report
on Electricity Prices released today by TCAP. The online analysis can be
found on the TCAP website at http://tcaptx.com/reports/snapshot-report-electricity-prices-texas-july-2017.

“These residential price declines are promising, and show the retail
electric market is maturing,” said Jay Doegey, executive director for
the Texas
Coalition for Affordable Power. “But it’s also true that electric
prices historically have been significantly higher in areas with retail
electric deregulation, as compared to other areas of Texas. We’re
encouraged by the price declines, but more progress is needed.”

Under the state’s retail electric deregulation law, consumers living in
about 85 percent of Texas can shop for electricity in much the same way
they can shop for cell phone service. But residents in the remaining 15
percent of Texas don’t have similar options for service, and instead
must purchase electricity from a single deregulation-exempt provider in
their area.

This bifurcated system — with some Texans receiving service in
deregulated areas, and others receiving service in areas exempt from
deregulation — provides a unique opportunity to compare prices. The new
TCAP analysis reveals that average residential electricity
prices in deregulated areas remained higher than average prices
outside deregulation for every year from the beginning of deregulation
through 2015, which is the last year for which data exist to conduct the
analysis.

The new TCAP
Snapshot Report also reveals that rates charged by the state’s two
largest transmission and distribution providers have increased in recent
years beyond the level of inflation, and that these transmission and
distribution rates comprise a larger proportion of home residential
bills than they did in previous years.

Transmission and distribution charges are “non-bypassable,” which
means that all electric customers in a given region must pay them,
regardless of the retail electric provider the consumer has selected for
service.

You can find the new Snapshot Report on Electricity Prices and other
TCAP reports at TCAPTX.com.

What
is the Texas Coalition for Affordable Power?

TCAP
is a coalition of more than 170 cities and other political subdivisions
that purchase electricity in the deregulated market for their own
governmental use. Because high energy costs can impact municipal budgets
and the ability to fund essential services, TCAP,
as part of its mission, actively promotes affordable energy policies.
High energy prices also place a burden on local businesses and home
consumers.

Contacts

Texas Coalition for Affordable Power
R.A. Dyer, 512-322-5898
[email protected]