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Inertia Resources is a third-party distributor of electricity, natural gas, and solar services. With all our options, we will find what will work best in your situation so you can manage your own energy use.
Texas deregulation of electricity and natural gas markets began in the late 1990s with the passage of Senate Bill 7 (SB7) by the Texas Legislature. This legislation, which was signed into law by then-Governor George W. Bush in 1999, aimed to create a competitive market for electricity and natural gas in Texas.
Prior to SB7, the Texas electricity market was dominated by a few large utilities that had a virtual monopoly on power generation and distribution. These utilities were regulated by the Texas Public Utility Commission (PUC), which set rates and approved construction of new power plants.
Under SB7, the state began the process of deregulating the electricity market, allowing retail electric providers (REPs) to compete for customers. This meant that customers could choose their electricity provider, and REPs could offer a variety of pricing plans and incentives to attract customers.
The deregulation of natural gas followed a similar path, with the passage of Senate Bill 373 (SB373) in 1997. SB373 allowed natural gas customers to choose their gas supplier and established a competitive market for natural gas in Texas.
The goal of deregulation was to create a more competitive market that would result in lower prices for consumers. However, the transition to a competitive market was not without its challenges.
In the early years of deregulation, some REPs offered low introductory rates to attract customers, only to raise prices significantly once customers were locked into contracts. This led to a number of complaints from consumers and prompted the PUC to introduce regulations to protect consumers from deceptive marketing practices.
In addition, the deregulation of electricity and natural gas led to a proliferation of new companies in the market, some of which were poorly capitalized or had little experience in the industry. This led to a number of bankruptcies and consolidation in the industry.
Despite these challenges, the deregulation of electricity and natural gas in Texas has generally been viewed as a success. The competitive market has led to lower prices for consumers and has encouraged innovation in the industry, with new technologies and business models emerging to meet the changing needs of customers.
Today, Texas remains one of the few states with a fully deregulated electricity market, and the state's natural gas market is also largely deregulated. While there have been some bumps along the way, the deregulation of electricity and natural gas in Texas has proven to be a positive development for consumers and the industry as a whole.
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