Texas Electric Dereg Subject of PBS Report

Inside E Street, a Public Broadcasting System program featured on more than 200 TV stations nationwide, has begun airing a new segment. It’s main focus: electric deregulation in Texas.

PBS cites data showing electric prices in

deregulated Texas consistently above national average.

“Over the past ten years, the average retail price of Texas electricity has consistent exceeded the national average,” noted Inside E Street host Lark McCarthy, citing federal data. The veteran newscaster also identified new challenges for residential consumers.

Texas is among about 15 states with deregulated retail electricity markets. The intent is that electric companies compete in these markets and free-market forces keep a lid on prices and improve service. But as experts on the PBS report noted, technological and economic barriers unique to electric power can make deregulation a difficult proposition.

Geoffrey Gay

For instance, electricity — unlike other commodities — cannot be stored. This means that under deregulation consumers can become captive to volatile price swings. And because electricity is essential to the public welfare, dips in reliability or increases in price can cause serious hardships.

“The focus of the original deregulation effort was to get lower prices — and that has not worked well,” said Geoffrey Gay, general counsel for the Texas Coalition for Affordable Power. Interviewed for the PBS segment, the Lloyd Gosselink principal also noted that comparison shopping under Texas deregulation can be difficult. “I’ve been dealing with utility business for 33-plus years, and I have found personally the options available very confusing,” he said.

TCAP and other consumer organizations have advocated for the creation of standard-offer products to make apples-to-apples shopping easier. Under the proposal, retail electric providers would offer products with standardized terms and conditions along with their other electricity deals. These deals would be listed at the state-sponsored powertochoose website. But under heavy industry lobbying, lawmakers have yet to embrace the reform.

“For many folks, especially for the elderly and the poor, going to the powertochoose website (to shop for electricity) can be an incredibly intimidating process,” said Gay.

You can click here to watch the entire Inside E Street segment.To learn more about standard-offer products, go here.

The Texas Coalition for Affordable Power

Questions and answers about a leading electric consumer organization

When it comes to electric deregulation, the Texas Coalition for Affordable Power enjoys a unique vantage point. The more than 160 cities and other political subdivisions that make up TCAP purchase in excess of 1.3 billion kilowatt/hours of power each year for their own governmental use. As such, it is one of the largest organizations of energy consumers in the state.

High energy costs can impact municipal budgets and the ability to fund essential services. An increase by even a single penny in electric rates can cost cities millions of dollars. TCAP members understand this first-hand. High energy prices also places a burden on local businesses and home consumers.

That’s why TCAP, as part of its mission, proactively promotes affordable energy policies. TCAP monitors federal, state and local initiatives that may affect the price and availability of energy. The organization represents consumer interests at the Electric Reliability Council of Texas, the Public Utility Commission and before state legislative panels. TCAP’s original policy research has been cited nationally and internationally and has won praise from key lawmakers and staff.

TCAP was originally two separate non-profit corporations — the Cities Aggregation Power Project and the South Texas Aggregation Project — organizations formed in 2001 for the specific purpose of purchasing power in the then-newly deregulated market. TCAP also is the parent organization of Recharge Texas, and supports its online newsletter, the Recharge Ratepayer Report. In 2012, TCAP released Deregulated Electricity in Texas: A History of Retail Competition — The First 10 Years. In 2011, TCAP released The Story of ERCOT: The Grid Operator, Power Market & Prices under Texas Electric Deregulation.

Also in 2011 TCAP named Randolph Moravec, Ph.D., as its first executive director. The former finance director for the Town of Addison served previously on the TCAP board as its organization’s secretary, and also served as vice chairman for the Cities Aggregation Power Project. Dr. Moravec received his Ph.D. in public affairs from the University of Texas-Arlington in 2011.