CAPP”s recent report on the History of Electric Deregulation in Texas relies upon the most recent annual data from the federal United States Energy Information Administration. Annual data – as opposed to monthly data – provide a clearer picture of long-term pricing trends. CAPP”s study shows that electric prices have increased under the deregulation law.
A review of the most recent monthly data from the federal government confirms that the trend continues. Between January 2008 and November 2008 average electric prices in Texas remained above the national average. That’s in contrast to the decade before the deregulation law. Then, rates in Texas were always below the national average.
Deregulation supporters like to note that prices have declined in recent months. This is true. But electric prices declined by an even larger percentage nationwide. In fact, as the chart above illustrates, prices increased by a larger percentage in Texas than in the United States during the beginning of the year, and then decreased by a smaller percentage in Texas than the United States at the end of the year.
The United States Energy Information Administration could not provide data beyond November 2008.