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Deregulation +10 Years: Texas Electricity Rates Are Up, Not Down
Fort Worth Star Telegram ^ | 2006.03.20 | R.A. Dyer

Posted on 03/20/2006 3:00:56 PM PST by B-Chan

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By the numbers

$108.40: The average utility bill for a typical Texan.

$94.80: The average utility bill for a typical electricity consumer in the United States.

40th: The ranking of Texas among the 50 states and Washington, D.C., on the affordability of electricity.

SOURCE: Office of public utility counsel, based on 2005 figures

1 posted on 03/20/2006 3:00:59 PM PST by B-Chan
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To: B-Chan

Part of Texas's problem is the ERCOT grid. Very expensive.


2 posted on 03/20/2006 3:02:45 PM PST by MeanWestTexan (Many at FR would respond to Christ "Darn right, I'll cast the first stone!")
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To: B-Chan

I don't take Fort Worth Star Telegram but I'll bet their rates have gone up in the last ten years. Who's investigating that scandal?


3 posted on 03/20/2006 3:03:58 PM PST by FreePaul
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To: B-Chan
$94.80: The average utility bill for a typical electricity consumer in the United States.

Really? Then I'm well above average.

4 posted on 03/20/2006 3:07:07 PM PST by bad company ("Any damned fool can write a plan. It's the execution that gets you all screwed up." - James F. Hol.)
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To: B-Chan

Well, Texans don't typically have rolling blackouts either. Those states with regulated utilities typically have to get some of their electricity from states like Texas.


5 posted on 03/20/2006 3:08:36 PM PST by VRWCmember
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To: FreePaul
I don't take Fort Worth Star Telegram but I'll bet their rates have gone up in the last ten years. Who's investigating that scandal?

Apples and oranges. One does not need a subscription to the Startlegram to live.

There was a good reason the electric utilities used to be regulated. It was called "the public interest". The traditional Christian term was "commonweal". You should look it up.

6 posted on 03/20/2006 3:11:00 PM PST by B-Chan (Catholic. Monarchist. Texan. Any questions?)
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To: bad company

"Really? Then I'm well above average."

Yeah, I'd take $94.80 in a heartbeat.


7 posted on 03/20/2006 3:14:46 PM PST by Buck W. (John Kerry: The Emir of Absurdistan.)
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To: VRWCmember

Typically? Out of all 50 states, how many regulate electricity rates and are forced to buy power from Texas? 2? 12? 24?

You claim that the deregulation of electric utilities in Texas is connected to the lack of blackouts here. Please post some support for this contention.

Got any evidence? Any numbers? I posted hard data in my article. I have yet to see any evidence posted in refutation of these data.


8 posted on 03/20/2006 3:15:42 PM PST by B-Chan (Catholic. Monarchist. Texan. Any questions?)
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To: B-Chan
You claim that the deregulation of electric utilities in Texas is connected to the lack of blackouts here. Please post some support for this contention.

I'm not claiming the deregulation of electric utilities is connected to the lack of blackouts. I merely pointed out that Texas is a provider of electricity to many other states that have regulated their utilities, some of which have experienced some rather widely publicized rolling blackouts (or Gray-outs in one rather infamous example).

As for the hard data, yes rates have gone up, but they were going up every year before regulation as well. I haven't looked at the source behind this story in the Startlegram, but it sounds like the study was conducted by an organization that might have an agenda.

9 posted on 03/20/2006 3:21:52 PM PST by VRWCmember
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To: B-Chan
One does not need a subscription to the Startlegram to live.

Nor does one need electricity to live. It is convenient but not necessary. Maybe the state should just find out what the poorest person can pay for electricity and set the rate at that. Some would consider that to be "in the public interest."

10 posted on 03/20/2006 3:22:54 PM PST by FreePaul
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To: B-Chan
I posted hard data in my article. I have yet to see any evidence posted in refutation of these data.

He said a recent study by the Public Utility Commission has found evidence of savings under the state's deregulation law, and that Rose, in his August report, did not specifically examine the features of the Texas market.
From the article itself, there is a claim that Rose's study did not specifically examine the features of the Texas market, thereby implying that the analysis is flawed at best.
11 posted on 03/20/2006 3:25:48 PM PST by VRWCmember
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To: B-Chan
There was a good reason the electric utilities used to be regulated. It was called "the public interest".

And there is also a good reason for deregulating; it is called production efficiency and competition. It almost always leads to better quality, higher production, and more consumer choice.

12 posted on 03/20/2006 3:27:40 PM PST by VRWCmember
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To: FreePaul

The basic differences between you and I:

1. You prefer an efficient society to a Christian society.

2. I post data to support my claims.


13 posted on 03/20/2006 3:32:11 PM PST by B-Chan (Catholic. Monarchist. Texan. Any questions?)
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To: VRWCmember

I'm still waiting to see some data in refutation of the data I posted. Any data. Any data at all.


14 posted on 03/20/2006 3:33:22 PM PST by B-Chan (Catholic. Monarchist. Texan. Any questions?)
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To: B-Chan

Does anyone know long it took for this whole telephone thing to shake out?

25 years or so?


15 posted on 03/20/2006 3:34:59 PM PST by pollyannaish
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To: B-Chan

The "data" you posted is meaningless. The "average utility bill" figures don't give the KWH purchased for that amount. If you post that it would help. I am not aware of any evidence that electricity has a religious preference.


16 posted on 03/20/2006 3:44:35 PM PST by FreePaul
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To: VRWCmember
I'm not claiming the deregulation of electric utilities is connected to the lack of blackouts. I merely pointed out that Texas is a provider of electricity to many other states that have regulated their utilities, some of which have experienced some rather widely publicized rolling blackouts...

You implied without evidence that some states have a shortage of electric power due to utility rate regulation. If so, then please tell us: how many states does Texas supply with electricity? Are all of the importing states regulators of electic utility rates? If not, what percentage are? And what linkage, if any, is there between Texas' deregulation of rates and its provenance of electric power to other states? I see no answers to these questions in anything posted so far.

As for the hard data, yes rates have gone up, but they were going up every year before regulation as well.

Evidence? Please cite.

I haven't looked at the source behind this story in the Startlegram, but it sounds like the study was conducted by an organization that might have an agenda.

The basic data used in the study cited in the article I posted came from the State of Texas. I see no reason to doubt the accuracy of the facts cited in the story based upon their source.

Every organization, from the U.S. government on down, has an agenda. Objectivity is a myth. The best that a thinking person can do is to examine the evidence from all sources, judge each source for its trustworthiness, and make a decision as to whose biased version of the truth is likely to be closest to reality.

Until I see evidence refuting the data cited in the story, I have to come down on the side of the article's author. Again: if anyone has better evidence, please post it. Otherwise, the claim stands.

17 posted on 03/20/2006 3:45:21 PM PST by B-Chan (Catholic. Monarchist. Texan. Any questions?)
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To: B-Chan

Often regulators do not work in the public interest, but serve the interests of the reigning party. Further, many utility companies engage in rent-seeking by deliberately raising the regulatory burden. Also, the "public interest" or "commonweal" is not necessarily best served by the lowest possible retail price for power. What would be the incentive for additional capital investment under such a regulatory regime?


18 posted on 03/20/2006 3:46:12 PM PST by oblomov (Join the FR Folding@Home Team (#36120) keyword: folding@home)
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To: B-Chan
More comments on this article and actual data from Texas Freepers are cross referenced on Free Republic at Texas' electrical rates among the highest
19 posted on 03/20/2006 3:50:27 PM PST by Unmarked Package
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To: B-Chan
It may well be that Texas' rates have increased faster than the national average, but this article doesn't provide enough evidence to draw that conclusion. It would've been nice to see whether these academics controlled for such things as size and number of homes, volatility in demand, local industry characteristics, etc.

Without further evidence, I'd say the jury's still out on this one.

20 posted on 03/20/2006 3:51:21 PM PST by NittanyLion
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