Electricity deregulation stopped in East Texas

While the rest of us in the deregulated market have been shocked with out of control electricity prices, Governor Rick Perry just signed a bill that effectively stops deregulation in East Texas.

Senate Bill 547 by Senator Eltife and HB870 by Representative Hughes will require a lengthy five stage process including a successful pilot program that proves competition will result in lower rates. In other words, Perry killed Ken Lay's electricity deregulation, at least in East Texas. Thank goodness. According to Marshall News Messenger:

"I support competition when it can lower our electric rates here in Northeast Texas," Hughes said. "But all the evidence shows that, if we moved to competition in the near future, it would actually increase our electric bills."

Mighty nice of him! Meanwhile a bill by Senator Wendy Davis that would allow citizens to take advantage of long term low rates the city negotiated with electricity providers, died. So Perry admits deregulation has failed by signing SB547, but a bill that would give homeowners and businesses long term low rates failed.

Look for Eltife and Hughes to use this as a campaign issue like Perry did in 2002. It doesn't make cents.