Eight years after state legislators deregulated the electric industry Texans continue to question the wisdom of the ruling and whether it has helped or hurt consumers. And the role smart meters will play in improving the daily lives of citizens while saving consumers money and reducing the local carbon footprint is also the subject of vigorous debate.
Since 2002 the majority of Texans have been free to choose their electric utility. In addition, the legislature also deregulated the wholesale market, meaning anyone with the financing could build generation plants and trade power. Only power line utilities such as Oncor remain fully regulated.
While it is true that Texas consumers can currently find prices that are lower than before deregulation, attorney Geoffrey Gay, who represents cities in rate negotiations, thinks the big picture tells a more accurate story. According to data from the Energy Information Administration, the average price for electricity for the entire country has risen 40 percent since 1999. But, says Gay, average price in Texas rose “a whopping 68.5 percent. You have to say something’s wrong.”
Public Utility Commission Chairman Barry Smitherman says the PUC is working to eliminate congestion that has contributed to price spikes. “The wind is clearly making a difference on price,” he says, noting that a new power line carrying wind-generated electricity to South Texas and Houston cut prices in those areas.
Consumer advocates worry that the array of pricing plans offered by providers have resulted in consumers paying higher bills than necessary. Some plans promise a fixed price while others offer prices that vary monthly or even hourly. Gay suggests that the PUC should require each retailer to make at least one standard offer that people can easily compare, with no special fees or extras.
Smart meters have added a new wrinkle because it enables utilities like Oncor to monitor when and how consumers are using power. When fully implemented, the consumer or power company will be able to communicate with household appliances remotely. Critics are unhappy that the PUC is allowing Oncor to recoup the $686 million price tag for its smart meter deployment by charging residential customers $2.19 a month for the next 11 years.
Bob Shapard, chief executive of power line operator Oncor, said studies show that once people can see their usage in real time, they reduce their energy consumption by around 10 percent. “If we use 10 percent less power in this state, we’d save over $3 billion a year,” he says, meaning the price of power would go down for all customers.
While it is true that Texas consumers can currently find prices that are lower than before deregulation, attorney Geoffrey Gay, who represents cities in rate negotiations, thinks the big picture tells a more accurate story. According to data from the Energy Information Administration, the average price for electricity for the entire country has risen 40 percent since 1999. But, says Gay, average price in Texas rose “a whopping 68.5 percent. You have to say something’s wrong.”
Public Utility Commission Chairman Barry Smitherman says the PUC is working to eliminate congestion that has contributed to price spikes. “The wind is clearly making a difference on price,” he says, noting that a new power line carrying wind-generated electricity to South Texas and Houston cut prices in those areas.
Consumer advocates worry that the array of pricing plans offered by providers have resulted in consumers paying higher bills than necessary. Some plans promise a fixed price while others offer prices that vary monthly or even hourly. Gay suggests that the PUC should require each retailer to make at least one standard offer that people can easily compare, with no special fees or extras.
Smart meters have added a new wrinkle because it enables utilities like Oncor to monitor when and how consumers are using power. When fully implemented, the consumer or power company will be able to communicate with household appliances remotely. Critics are unhappy that the PUC is allowing Oncor to recoup the $686 million price tag for its smart meter deployment by charging residential customers $2.19 a month for the next 11 years.
Bob Shapard, chief executive of power line operator Oncor, said studies show that once people can see their usage in real time, they reduce their energy consumption by around 10 percent. “If we use 10 percent less power in this state, we’d save over $3 billion a year,” he says, meaning the price of power would go down for all customers.
