Texas PUC Issues Electric Markets Competition Report

Michael Giberson

The Texas PUC has released its “2007 Scope of Competition in Electric Markets in Texas” report.

The Dallas Morning News reported a story headlined Power company competition not working, report says. The story said:

The report offered suggestions for the Legislature as it goes into session next month, including ideas that would cut the market share or the size of the state’s largest power companies, such as Dallas-based TXU Corp. Specifically, the report suggests, consumers who haven’t actively chosen an electricity plan could be forced to do so, or be randomly assigned to a provider.

It also proposes that the Legislature force companies to separate their power line divisions from retail or wholesale operations. …

“We see the opportunity to make the market a little more vigorous,” said PUC Chairman Paul Hudson. “There are certain market participants that, by virtue of the way the market was set up, were in a structurally advantaged position.”

Other reports include the Galveston Daily NewsExperts: Deregulation Not Working — and an Associated Press story that ran in the Houston ChronicleReport Says Some Power Companies Are Too Big.


2 thoughts on “Texas PUC Issues Electric Markets Competition Report

  1. I just finished reading the entire Texas PUC report. It takes a very selective reading to infer that its main conclusion is that the market isn’t working. Most of the report demonstrates that there’s a substantial amount of competition. The report does note that in 2006, many customers declined to switch providers even though competitors offered prices that were better than the “price to beat” offered by sellers affiliated with utilities. This is an interesting puzzle, and the PUC’s suggestion was — a more aggressive effort to induce customers to switch suppliers! (Definitely not a “turn back the clock” approach!)

  2. I just finished reading the entire Texas PUC report. It takes a very selective reading to infer that its main conclusion is that the market isn’t working. Most of the report demonstrates that there’s a substantial amount of competition. The report does note that in 2006, many customers declined to switch providers even though competitors offered prices that were better than the “price to beat” offered by sellers affiliated with utilities. This is an interesting puzzle, and the PUC’s suggestion was — a more aggressive effort to induce customers to switch suppliers! (Definitely not a “turn back the clock” approach!)

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