Texas’ Competitive Energy Market Means Higher Power Bills for 7 million Families
Similar to states in the Northeast restructured energy markets, electricity rates are significantly higher in the Texas “competitive” electricity market!
Texas deregulated its ERCOT market in 2003. About 54% of Texan families (6.8 million households) are serviced by hundreds of retail suppliers. In the Lone Star state’s ERCOT market there are no incumbent regulated utilities. These 6.8 million accounts paid on average 16.7 ¢ per kWh.
For residents living in the non-ERCOT market (5.6 million households), there are no retail energy options. Non-ERCOT market families pay electricity rates that are negotiated by one of 62 energy Co-ops or 17 municipalities. These 5.6 million residential accounts where their municipality or co-op procures their electricity, the average rate was 12.9 ¢ per kWh.
Two investor-owned utilities (El Paso Electric and Entergy Texas with 800,000 accounts) offer a fair rate comparison to ERCOT’s competitive retail rates. The average rate for El Paso and Entergy in 2024 was 13.6 ¢ per kWh.
Families in Texas’ competitive electricity market paid:
3.1 ¢ more per kWh in 2024 compared to El Paso/Entergy’s average rate at 13.6 ¢ per kWh.
About $400 more per family.
$2.8 billion more in the aggregate in 2024 compared to the non-ERCOT market. See chart below revealing DOE EIA sourced data by supplier.
The two dominant players — NRG and Vistra — own multiple brands and charged much higher rates than non-ERCOT markets.
Together in 2024 both firms control 70% market share.
Together these 2 mega-energy firms netted $2.8 billion in revenues above non-ERCOT rates in 2024.
NRG accounts paid 16.7 ¢ per kWh compared to non-ERCOT 13.6 ¢ per kWh.
Vistra accounts paid 18.3 ¢ per kWh compared to non-ERCOT 13.6 ¢ per kWh.
