New Study Finds Energy Choice is a Boon for Texas Consumers

Posted August 4, 2017


Everything is bigger in Texas — including the benefits of retail energy choice. 

That's according to recent, groundbreaking research produced by Rice University's Baker Institute for Public Policy.

The study — "Electricity Reform and Retail Pricing in Texas" — examines retail competition and price data (residential, wholesale, and some commercial) for competitive and noncompetitive markets in Texas from 2002 through 2016. Overall, the study finds that market competition has led to a favorable correlation between retail and wholesale prices for consumers, and has also led to cost reductions in the delivery of energy services by retail providers. 

The chart below compares U.S. and Texas average electricity rates for the residential, commercial and industrial sectors since 2000. 

Source: Baker Institute for Public Policy, based on data from the U.S. Energy Information Administration (EIA) 

As the data indicates, Texas electricity rates are markedly lower than the national rates across all three economic sectors. Despite energy market volatility before the shale gas revolution from about 2002-2010, Texas electricity rates have been $0.003/kWh lower than the average national rate since 2000. The average price difference is largely attributed to natural gas prices and market structure. 

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While the study notes additional research is required to measure the full benefits for Texas businesses, electric choice has already delivered measurable electricity savings for commercial customers across the country. 

Our new eGuide highlights a recent study by the Energy Research Consulting Group (ERCG), which found that U.S. businesses in a number of competitive markets have saved billions on commercial electric costs, simply by switching from the default utility rate to a retail energy provider. The slideshow below offers a brief preview of the report's findings.

Learn how businesses have saved billions through electric choice. 

Download the Full Report

Electric Choice is Saving Billions for Businesses

New research shows competition is paying huge dividends for businesses.

Download the Full Report

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