New study shows Texas electricity rates have changed little in 10 years

A recent study conducted by the Texas Chamber of Commerce Energy Association (TCCEA) found that after adjusting for inflation, Texas electricity rates are essentially the same as they were in 2002.

Data from the study, taken from the U.S. Energy Information Administration, show that rates in the first quarter of 2012 are almost exactly the same as those seen in the first quarter of 2002. Texas averaged 8.72 cents per kilowatt hour for all electricity usage – including residential, commercial, transportation and industrial – in the first quarter of 2012. In 2002 dollars, the rate in the earlier period was 6.81 cents per kilowatt hour.

When inflation is accounted for, that 6.81 cents is equal to 8.70 cents in 2012 dollars.

In 2002, Texas introduced energy deregulation laws, giving residents the opportunity to switch retail energy providers based on the rates that were most appropriate for them. According to the study, the significance of the findings lies in the factors that would typically send energy prices higher, such as the price of generation fuels. However, despite the many fluctuations, electricity rates – perhaps due to Texas’ competitive energy market – have remained the same.