Rep. Gallego Votes for 15% Electricity Price Reduction
April 24th, 2007
Austin–State Representative Pete P. Gallego (D-Alpine) voted on an amendment that will save electricity customers in Texas millions on their electricity bills. The amendment requires residential electric providers to reduce the price of electricity by 15 percent in so-called deregulated areas of the state. Rep. Gallego’s district has been particularly vulnerable to rising electricity costs.
“Rising electricity prices are hitting Texans in the pocketbook,” said Rep. Galego. “Yesterday, I proudly voted for a bill that will provide relief to those of us who are shocked at the high electric bills we’ve been getting over the last few years.”
Rep. Gallego said the bill will help homeowners by reducing electricity rates by 15 percent. As the summer approaches, that will mean significant relief for consumers in the area.
“Gov. Perry’s deregulation schemes have caused electricity bills to skyrocket,” said. Rep. Gallego. “It is not fair to consumers that electric companies continue to make billions and yet consumer rates still go up. This amendment is in the best interest of all Texas consumers.”
In 1999, Representative Steven Wolens (D-Dallas) passed Senate Bill 7 in the House, which deregulated the electric market. Consumers and Texans praised Representative Wolens efforts, believing the bill would lead to lower electric rates for the average consumer. Since 1999, however, electricity prices have climbed 67 percent. In 2002, the average residential consumer prices in Texas were approximately equal to the national average. Today, the national average is far below the average price charged to consumers in Texas. Deregulation has clearly failed.
“Seven years ago we were told deregulating the electric companies would increase competition and lower prices,” Rep. Gallego said. “But we have yet to see this happen. We have multi-billion dollar companies profiting at the expense of the average homeowner. This is not only unacceptable, but dishonest as well. The legislature promised lower prices and Texas consumers deserve nothing less.”
Today, residential utility users are paying anywhere from 12 to 16 cents per kilowatt hour for electricity–at least 50 percent more than in 1999. Some Texans are paying closer to 100 percent more than seven years ago.
