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Texans Shocked by Spiking Power Bills

State not quite prepared for deregulation, and higher fuel costs don't help, either

By Katherine Thompson, Newser Staff

Posted Jul 17, 2008 9:30 AM CDT

(Newser) – As energy prices soar, many Texans are wishing they had added "regulation of electrical companies" to the list of things not to mess with. Authorities predicted competition would lower prices when they deregulated the industry in 1999, the Wall Street Journal reports, but inadequate infrastructure, rising fuel costs, and other factors have meant just the opposite.

Prices are often double or triple the national average, spiking to $40 per hour—40 times the US norm—during peak usage. In addition to the splintering effects of deregulation, unexpected bottlenecks are causing problems getting power to customers, further fueling price inflation and worrying analysts. "I don't think we can put the toothpaste back in the tube," one legislator says. "All we can do is go forward."

An unidentified woman gathers her laundry outside her home near Santa Rosa, Texas, Thursday, July 10, 2008. Line drying clothes is one way to cut back on electrical costs. (AP Photo/Eric Gay)

Windspire, a consumer-friendly wind power appliance for homes and businesses, was launched today at Windpower 2008 in Houston, Texas. It might become more popular as energy prices soar. (AP Photo)

Texans are paying between 13 and 27 cents per kilowatt hour, up to three times the national average. At times of peak useage, prices can go as high as $4 per kilowatt hour. (AP Photo/Efrem Lukatsky)

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Texans Shocked by Spiking Power Bills

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Texans Shocked by Spiking Power Bills

State not quite prepared for deregulation, and higher fuel costs don't help, either

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OTHER STORIES ON OUR RADAR

Texas • alternative energy • electricity • energy bill • George W. Bush • energy costs • deregulation

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Student in Texas Accused of Plotting Attack on Bush

Khalid Ali-M Aldawsari was buying chemical explosives, say authorities

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It transmits electricity to help state get through crisis

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Then-Gov. George Bush's staff failed to tell him Jones was asking for test

Joe Klein: Gulf Spill Is Bush's 2nd Katrina

Deregulation caused disaster, Klein says

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First lady felt weight of the world lifted upon return to Texas

About Us

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Newser By Users

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What is Newser?