The year the Texas Legislature changed the energy game forever

by Russell Gold, Texas Monthly | Source: Texas Monthly | Posted 10/18/2023

Keyword Tags: SB 7 deregulation 1999 Texas David Sibley Steve Wolens Tim Morstad Pat Wood competitive market renewables grid reliability Texas Legislature

In 1999 lawmakers radically altered the electricity marketplace. We can all breathe easier—literally—because of it.

AI generated summary

If you lived in Houston in 1999, Reliant Energy was the dominant electricity provider. However, Senate Bill 7, which aimed to deregulate the electricity market, changed that. The bill sought to create a competitive marketplace that would encourage companies to generate low-cost power. Large businesses were in favor of the bill, as it allowed them to negotiate lower prices. However, there is evidence that residential customers who had to select a new retail provider ended up paying more over a ten-year period than they would have if there had been no deregulation.

Deregulation also had other effects. It forced older coal plants to compete with more efficient gas plants and led to a cleaner state environment. The law also encouraged the development of renewable energy, with Texas now obtaining nearly a quarter of its electricity from wind power. Despite the drawbacks and problems, such as the 2021 blackout, many believe that the deregulation of the electricity market in Texas had some positive aspects.

Link to Original Article

Please find the link to the full article below. (Please note that content provider might require a paid subscription)

Source Link: https://www.texasmonthly.com/news-politics/the-year-the-texas-legislature-changed-the-energy-game-forever/

Create a free trial account: Sign Up

Grid monitor is free to try. No credit card required

The year the Texas Legislature changed the energy game forever

AI generated summary

Link to Original Article

Create a free trial account: Sign Up

Already have an account? Login