The Outcome Of Texas Deregulation Electricity Bill
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On the 1st of January 2002, Texan legislators passed the Senate bill 7 to law. This bill squarely centered on Texas deregulation electricity. Statistical information about the consumption levels of electricity and the repercussions that come with it at shocking. The state tops in the US in energy consumption in general. As at now, the electric power stands at $24 billion and still rising. This can be compared to Spain and Great Britain consumption levels. These are the shocking statistics that prompted to that legislation. Texans ought to be aware of their energy consumption and check on their habits.
The bill declared that REPs (Retail Electricity Producers) would be allowed to produce energy to compliment the incumbent authority. This in turn led to 85% of all power consumers to choose from a variety of the REPs. Coincidentally, 85% of the total population have also shifted from one REP to another since that time.
There are a number of these retail electric power producers namely: Austin Energy, Ambit Energy, Bounce Energy, Direct Energy, Reliant Energy, Dynowatt, Gexa Energy, Glacial Energy, Just Energy, Mega Energy, First Texas Energy Corporation. These companies lie subordinate to Electric Reliability Council of Texas (ERCOT).
The introduction of the bill has led to improvement of the energy sector within the state. The introduction of the REPs into the system shifted the whole game from a service delivery to more like a business. Market forces played a role in the price setting. In areas where the REPs were concentrated, customers had a variety to choose from, this in turn gave them good prices. For instance, in central Texas where they are concentrated prices can go as low as 7 cents per kilowatt, the lowest in the state.
With the deregulation, this meant this were controlled or governed by the rationality of the Texans. This can be evident through the increase in levels of consumption in the first two years of introduction of the bill. There was an increase of near 50% in consumption of energy in the state. This had to be put in check with pricing and legislation in order to curb a rather extravagant consumption of electricity.
However on the other had negative effects majorly on the environment and the way in which Texans consume electricity cannot be ignored. In first two years of operation of the bill, the consumption levels surged by almost 50%. This is quite an extravagant approach to the use of resources available. Coal, natural gas and other clean ways to produce energy will not be around for forever. Texans ought to change this culture as it is quite alarming
At the end, natural gas is the best was to go forward but basing on the demand of electric power it would be an under performance in terms of production. The endowment in terms of natural gas alone cannot fully support the Texans. That is why companies have opted to invest in a production method that does not pollute the environment.
Texans have had to regulate their consumption through use of moderate energy consuming gadgets in their homes to curb on the rise and cost of energy consumption. At the end, the bill was a positive move however at first not all Texans opted in, the few who did are much aware on issues concerning electricity.
The bill declared that REPs (Retail Electricity Producers) would be allowed to produce energy to compliment the incumbent authority. This in turn led to 85% of all power consumers to choose from a variety of the REPs. Coincidentally, 85% of the total population have also shifted from one REP to another since that time.
There are a number of these retail electric power producers namely: Austin Energy, Ambit Energy, Bounce Energy, Direct Energy, Reliant Energy, Dynowatt, Gexa Energy, Glacial Energy, Just Energy, Mega Energy, First Texas Energy Corporation. These companies lie subordinate to Electric Reliability Council of Texas (ERCOT).
The introduction of the bill has led to improvement of the energy sector within the state. The introduction of the REPs into the system shifted the whole game from a service delivery to more like a business. Market forces played a role in the price setting. In areas where the REPs were concentrated, customers had a variety to choose from, this in turn gave them good prices. For instance, in central Texas where they are concentrated prices can go as low as 7 cents per kilowatt, the lowest in the state.
With the deregulation, this meant this were controlled or governed by the rationality of the Texans. This can be evident through the increase in levels of consumption in the first two years of introduction of the bill. There was an increase of near 50% in consumption of energy in the state. This had to be put in check with pricing and legislation in order to curb a rather extravagant consumption of electricity.
However on the other had negative effects majorly on the environment and the way in which Texans consume electricity cannot be ignored. In first two years of operation of the bill, the consumption levels surged by almost 50%. This is quite an extravagant approach to the use of resources available. Coal, natural gas and other clean ways to produce energy will not be around for forever. Texans ought to change this culture as it is quite alarming
At the end, natural gas is the best was to go forward but basing on the demand of electric power it would be an under performance in terms of production. The endowment in terms of natural gas alone cannot fully support the Texans. That is why companies have opted to invest in a production method that does not pollute the environment.
Texans have had to regulate their consumption through use of moderate energy consuming gadgets in their homes to curb on the rise and cost of energy consumption. At the end, the bill was a positive move however at first not all Texans opted in, the few who did are much aware on issues concerning electricity.
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