As did Denton (Denton Municipal Electric), Garland (Garland Power & Light), areas served by what used to be known as the Denton County Electric Cooperative (now CoServ), and so on.
They actually didn't opt out, they simply didn't opt in. The original law putting deregulation in place exempted cooperatives and municipal utilities unless they chose to join the competitive system. However, that choice is one way and permanent. If a co-op or city opts in, it can never go back. Most of the not-for-profit boards wanted to see if deregulation would be good for the rest of the state before they put it on their members.
I remember when natural gas costs spiked and that sent Texas electric rates, especially in the Texas-New Mexico and Oncor/TXU service areas, skyrocketing. Now that natural gas is less expensive, prices have dropped. Municipal systems, on the other hand, either owned their own generating infrastructure and were buffered or bought long-term hedge contracts that the competitive players were scared to buy (what if they bet wrong?) or were so new that they didn't have the credit to buy.
That's true. But you do get some of the lowest electricity costs in the state, as well as the option to select fixed-price contracts for 100% renewable generation if you'd like.
Be careful what you wish for in terms of deregulation. You have a great utility in Austin.
saryant|10 years ago
techsupporter|10 years ago
They actually didn't opt out, they simply didn't opt in. The original law putting deregulation in place exempted cooperatives and municipal utilities unless they chose to join the competitive system. However, that choice is one way and permanent. If a co-op or city opts in, it can never go back. Most of the not-for-profit boards wanted to see if deregulation would be good for the rest of the state before they put it on their members.
I remember when natural gas costs spiked and that sent Texas electric rates, especially in the Texas-New Mexico and Oncor/TXU service areas, skyrocketing. Now that natural gas is less expensive, prices have dropped. Municipal systems, on the other hand, either owned their own generating infrastructure and were buffered or bought long-term hedge contracts that the competitive players were scared to buy (what if they bet wrong?) or were so new that they didn't have the credit to buy.
jhayward|10 years ago
Be careful what you wish for in terms of deregulation. You have a great utility in Austin.