Summary

Directs the Public Utility Commission to study the feasibility and impact of re-regulating the states electricity market if the price of electricity in Texas is above the national average in 2008.

Background

SB 7(76R) deregulated the electricity market in the Texas. This deregulation proceeded in a series of stages, with the last stage (the elimination of the “price to beat”) beginning January 1st, 2007. Recently, a report by the Texas Coalition of Cities for Utility Issues demonstrating that electricity prices in Texas are among the highest in the country received national and local attention (see here and here).
This report was consistent with the findings of other research about the impact of deregulation in Texas. Retail electricity prices in Texas have increased 73%-80% since the beginning of deregulation.

Additional Links

Johnston, David Cay "Competitive Era Fails to Shrink Electric Bills" New York Times October 15, 2006
Rep. Burnam's Press Release on HB 395 (via McBlogger)