Energy Deregulation for the state of Texas
The state of Texas was home to a monopoly in both the electricity and the gas markets. A few companies controlled all the energy supply and rates were sky high. Apart from all of that, the demand for electricity just keep on increasing and all the companies in that monopoly just could not keep up! Pollution was at a high and the green energy market that was thriving in other areas of the world was pretty much non-existent in Texas. A much needed reform came in the form of deregulation.
Essentially, the Federal Power Act and the Public Utilities Holding Company Act of 1935 were responsible for instigating the stabilization of energy prices during the Great Depressions. Changes needed to be made according to the times, and these were just some of them. Soon, with the energy crisis of the seventies, it became imperative for some hard stance to be taken, and Texas soon implemented the deregulatory policies. The deregulation of gas happened in 1989 by virtue of The Natural Gas Wellhead Decontrol Act, and preceded the deregulation of electricity which came as a result of the Energy Policy Act of 1992.
This deregulation was necessary for the following reasons:
1. Monopolization of the energy market
New energy production was nearly impossible with the resistance of this monopoly, and so was the creation of energy plants. The process was much less transparent than it should have been, and this was becoming a problem because the energy demands of the state were not being met at all.
The economy was not very good. People could not afford the high prices of energy, and the monopoly in the energy sector had created huge problems for everyone. In the age of technology, it became essential for all houses and businesses to rely on energy, and that became a huge problem for their productivity and livelihood because of the extreme prices.
While some states had a lot of issues with deregulation, Texas actually took really well to it. This was because the competition that acme into the market drastically lowered prices and met the demands for electricity, which was warmly welcomed by Texas residents. Apart from that, the companies in the competitive market now were inclined to provide the best rates and the best services for their customers. This gave way to more innovative energy technologies such as Green Energy in a place such as Texas where they were genuinely lacking.