Federal Energy Regulatory Commission chairman Joseph Kelliher said last Friday that the federal government would not change its policy of allowing competitive markets to determine prices.
That is great news for Texas consumers, who benefit from the most stable and competitive electric market in the country. Consumers who have taken advantage of the new choices are paying rates as much as 40% below the price to beat that existed before deregulation was completed.
But Kelliher makes an important point that where prices are going up, it’s driven by fuel costs. Texas relies on natural gas to generate most of its electricity, and those prices have nearly quadrupled since Texas passed its electric dereg law.
New coal and nuclear power plants could provide reliable power in the short and long terms, but environmentalists fight them tooth and nail. Wind and solar alternatives are neither cheap nor reliable.
– Bill Peacock