Retail Power Prices in Texas: Analyzing the Whole Market in Context

This is the second article with a critique and analysis of Texas retail power prices in response to the recent Wall Street Journal article “Texas Electric Bills Were $28 Billion Higher Under Deregulation.” In the first article, we discussed the issues associated with using a ‘weighted average’ measure of central tendency to represent a highly skewed distribution of residential power prices. In this article, we cover the last two questions posed previously.

  1. The WSJ article only covers residential prices. What has transpired in the (roughly 2/3) of the market for commercial and industrial customers? …

Retail Power Prices in Texas: When the ‘Average’ Misrepresents

I read with interest the front-page Wall Street Journal article “Texas Electric Bills Were $28 Billion Higher Under Deregulation” of February 24th of this year. It promised an “analysis” of Texas retail power prices. The headline graph and its title (reproduced here) seemed to provide a definite conclusion: deregulated retail customers are overpaying.

Pricey Power

The roughly 60% of Texans who must choose a retail electricity provider consistently pay more than customers in the state who buy their power from traditional utilities.

Wsj Graph
Wsj Graph

Source: Wall Street Journal analysis of U.S. Energy Information Administration data

The article then takes the price differential in this…

Dale Furrow

consulting and software development projects: energy trading, risk management, compliance, economic analysis. https://www.linkedin.com/in/dale-furrow-68aa02166

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store