Summary

Requires incumbant electric utilities to divest themselves to below 20% of the electricity generation capacity of a market by 2011.

Background

Despite the breakup provisions in the orginal electrcity deregulation bill, A few power companies still control the market for wholesale electricity. For example, TXU owns about 70 percent of the wholesale power market in its service areas./1/

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. Further breakup of the market is intended to reduce the ability of incumbant providers to charge monopoly rents.

Additional Links

/1/ Walker, Lynn Consumer groups concerned move might increase rates Times Record News January 8, 2007