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