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Article filed under Energy, Energy Self-Reliant States

Electricity Deregulation Burns Ratepayers, Again

| Written by John Farrell | No Comments | Updated on Feb 14, 2011 The content that follows was originally published on the Institute for Local Self-Reliance website at

A new report about electric grid deregulation in Texas shows (yet again) that deregulation of electricity leads to much higher ratepayer costs:

In 2009, the report found 93 percent of Texans served by deregulated electric companies were charged above the national average. By comparison, 81 percent of customers outside deregulation paid less.

A 2007 story in USA Today examined state electricity deregulation policies and also found that they hadn’t ended well for ratepayers:

While average prices rose 21% in regulated states from 2002 to 2006, they leapt 36% in deregulated states where rate caps expired, according to a study by Ken Rose, senior fellow at the Institute of Public Utilities at Michigan State University.

Texas apparently didn’t learn the lesson from its hometown team and deregulation poster boy – Enron – which manipulated California’s deregulated market to precipitate the 2000-01 California electricity crisis.

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About John Farrell

John Farrell directs the Energy Democracy initiative at the Institute for Local Self-Reliance and he develops tools that allow communities to take charge of their energy future, and pursue the maximum economic benefits of the transition to 100% renewable power. More

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