After Texas was recently ranked as the the worst state for electrical system reliability, regulators went about drafting a plan that went into effect on August 1, 2012.

According to Public News Service, the cap on wholesale electricity prices is now 50 percent higher, which regulators say will give energy companies more funds with which to build new power plants – in turn creating more electricity to meet the ballooning demand.

However, some say the rate hikes may only lead to higher profits for the state's largest energy providers.

"The real frustrating thing here is that state regulators are saying we need to do this because power suppliers need to build more power plants, but there's no guarantee that these power suppliers are actually going to build those power plants at the higher prices," said Tim Morstad, associate state director of AARP Texas.

Fortunately for Texas residents, the energy deregulation laws that were implemented in 2002 allow them to decide which retail energy provider they would like to receive their electricity from. This has led to the creation of many resources that help residents make the switch to a new provider.