Sam Houston Electric Cooperative

News > Electric Deregulation > Related Articles About Deregulation > Electric Deregulation

Electric Deregulation: Not such a great “deal” after all.
Bob Boyd, Sam Houston EC Board Director

It’s a jungle out there – in the deregulated electricity market, that is. In theory, electric deregulation was supposed to undo government rules that stifle competition and efficiency, and give consumers lower prices, better service and greater choice. In reality, consumers subjected to the deregulated electricity market have endured broken promises, deceptive marketing tactics and dreadful customer service in a flailing, “Wild West” electricity marketplace.

A recent study by Consumer Reports found that while a few consumers have made gains under deregulation, on balance the majority have lost ground. Service has typically deteriorated. Consumer rights have been compromised. Claimed price cuts have never materialized. Furthermore, when free markets go bad, deregulated industries see no contradiction in getting multi-million dollar government bailouts.

Disastrous results in California and other states have caused Texas to take a second look at deregulation. The Public Utility Commission (PUC) has pulled back the reins. While Senate Bill 7 called for deregulation to begin on January 1, 2001, implementation has come to a halt. While in effect in some markets, deregulation won’t touch Northeast Texas until at least 2007. As for the Sam Houston EC service area, the PUC has yet to determine whether the existing infrastructure in Southeast Texas can accommodate retail competitive choice.

In a time of such uncertainty and confusion surrounding the deregulated electricity market, Sam Houston Electric has remained steadfast in our position. The Board of Directors continues to maintain a “wait and see” approach to deregulation. Although deregulation has been delayed for the majority of consumers in the Sam Houston EC service area, we have elected to monitor the progress of electric competition in other parts of Texas and will not participate in a deregulated electricity market unless we determine it to be beneficial to our members.

Truth is, for 65 years our goal has been to look after the best interests our members. Our members already enjoy all the so-called advantages of deregulation under the cooperative business model. We do the shopping for you – we use our expertise to negotiate prices and team up with other cooperatives to purchase power in bulk. Our members can rely on us to find the best deals possible and pass the savings on to them. The Co-op way of doing business is not a crafty game of smoke and mirrors. Our rates are not only lower than those being offered in many deregulated areas across the state, but they also beat those of several of our neighboring utilities.

At Sam Houston Electric, we don’t believe in leaving our members on their own to navigate the electricity market. Our Board works hard to ensure that won’t happen. Being part of a member-owned cooperative, especially Sam Houston Electric Cooperative, is the best way to ensure you’ll get the lowest price – and the best service.