The Outcome Of Texas Deregulation Electricity Bill
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 introduction bill acknowledged the introduction of REPs (Retail Electricity Producers) which would complement the incumbent traditional producers like Texas Energy. The law gave liberty to customers to choose from a pool of REPs that has been formed in those areas that had opted in concerning the bill. 85% of the Texans made shifts from at least one REP to another since 2002. This showed the impact that the introduction of REPs had to the consumption of power and the preferences Texans had.
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).
Whenever the numbers of sellers increase in any market, this is an advantage to customers. They benefit from price wars and better service and commodity production. The case is similar as Texans have option to pick from. The variety has boosted the sector from just a mere necessity and a service delivery sector to a more competitive, job creating and business oriented sector.
The deregulation has commercialized the sector to the extent that, demand and supply interplay directs the flow and manner in which consumption patterns take. At first, the levels increased by almost 50% in first two years the bill was introduced. Much of this was bared by the consumers however the producers too had a share in this as the energy costs in production also rose.
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 ought to take bold steps in order to turn around the electricity issues that are racking the state. Better legislation and energy efficient innovations are best options on the table.
The introduction bill acknowledged the introduction of REPs (Retail Electricity Producers) which would complement the incumbent traditional producers like Texas Energy. The law gave liberty to customers to choose from a pool of REPs that has been formed in those areas that had opted in concerning the bill. 85% of the Texans made shifts from at least one REP to another since 2002. This showed the impact that the introduction of REPs had to the consumption of power and the preferences Texans had.
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).
Whenever the numbers of sellers increase in any market, this is an advantage to customers. They benefit from price wars and better service and commodity production. The case is similar as Texans have option to pick from. The variety has boosted the sector from just a mere necessity and a service delivery sector to a more competitive, job creating and business oriented sector.
The deregulation has commercialized the sector to the extent that, demand and supply interplay directs the flow and manner in which consumption patterns take. At first, the levels increased by almost 50% in first two years the bill was introduced. Much of this was bared by the consumers however the producers too had a share in this as the energy costs in production also rose.
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 ought to take bold steps in order to turn around the electricity issues that are racking the state. Better legislation and energy efficient innovations are best options on the table.
About the Author:
Texas deregulation electricity suppliers offer commercial and residential property owners advice on how to save money on their energy bills. For FAQs, visit the related homepage at http://www.enertelconnections.com.