SOURCE: Texas Energy Association for Marketers (TEAM)

Texas Energy Association for Marketers (TEAM)

February 19, 2010 18:42 ET

Competitive Electricity Market Serves Consumers With Low Prices and Dependability

AUSTIN, TX--(Marketwire - February 19, 2010) -  The following press release is being issued by the Texas Energy Association for Marketers (TEAM):

At the most recent meeting of the Public Utility Commission of Texas, the Chairman and other Commissioners pointed out that competitive retail electricity rates in Texas are low and this is a very good time for customers to shop for competitive retail electricity prices in Texas. The Public Utility Commission correctly noted that prices available in competitive areas in Texas are lower than rates charged to customers in some areas that are not open to competition and where customers have no choice of providers, such as Austin and some areas served by cooperatives. These truths about the electricity market are in stark contrast to a recent press release on behalf of CAPP, where the organization continues to erroneously assert that a "wealth of reputable public data conclusively supports CAPP's case that Texas deregulation has failed to live up to its promise."

In an attempt to support its assertions, CAPP cites outdated and incomplete information in its discussion of retail electric pricing. For example, the pricing data used in the CAPP comparison was from 2008 and was not current. Current prices are significantly lower in Texas than they were in 2008. CAPP's claim that Texas has rates that are 53.1% higher than in Louisiana and 44.7% higher than Oklahoma also leaves their conclusions questionable. This too is misleading in that as of January 2010 Entergy Louisiana had an average monthly electricity price of $100.20 for usage at 1000 kWh, while the competitive rates available in Houston in January had customer's paying monthly bills as low as $81 for the same level of usage. As the Public Utility Commission has stated, benefits, including low prices, are available to customers who shop.

One of the other data sources improperly used by CAPP to support their errant conclusion is an index by WhiteFence. CAPP has erroneously cited the WhiteFence November 2009 index to support CAPP's erroneous conclusions that customers pay more for electricity in Texas cities such as Dallas and Houston than in other larger cities in the nation. This use of WhiteFence's data is misguided -- not even WhiteFence themselves agrees with statements made by CAPP. In a statement provided to TEAM by WhiteFence CEO, Franc Arbide, WhiteFence set the record straight: "WhiteFence does not support the conclusions drawn by CAPP about average electricity rates in Dallas and Houston. The WhiteFence index is not designed to compare average electricity rates; the Index evaluates average home size, weather and consumer usage patterns to estimate costs based on usage."

An actual comparison of current rates shows that Texans have significantly lower market rates for electricity available. An example of a city in the WhiteFence index for which CAPP would claim pays higher rates than Texas cities is New York City. However, based on data from in Texas, and from the New York Public Services Commission, using the lowest competitive market rate available from TEAM members, a customer using 1000 kWh in Dallas would have a monthly bill of $83 for a variable rate product and $103 for a 1-year fixed price product, while the same usage level in Houston would result in a monthly bill of $90 for a variable rate product and $111 for a 1-year fixed price product. In contrast, even on the lowest competitive rate available, a customer in New York City would pay $98 for a variable rate product and $127 for a fixed price product for the same level of usage. This shows that customers in Texas pay approximately 10 to 20 percent less for electricity in Texas as compared to New York City.

Most Texas customers are fortunate enough to have a choice of retail electricity provider. Now is the time to take advantage of particularly low competitive rates in the market.

To find the best electricity product: visit or call toll-free 1-866-PWR-4-TEX (1-866-797-4839), TTY: toll-free 7-1-1

The Texas Energy Association for Marketers (TEAM) is a group of independent retail electric providers that are dedicated to ensuring that Texans fully benefit from the state's competitive retail electric market.

Members include: Accent Energy, Amigo Energy, Cirro Energy, Green Mountain Energy Company, Hudson Energy, Just Energy, StarTex Power, Stream Energy, Tara Energy and TriEagle Energy.

Contact Information

  • For information contact:
    Catherine Webking
    Email Contact