Opinion: Consumers win when electricity companies compete
Business // Energy
By Elizabeth Killinger Jan. 3, 2020
1of2Elizabeth Killinger, president of Reliant and NRG Retail.Photo: Steve Gonzales, Staff Photographer / Houston Chronicle
2of2Innovation has been a key benefit of electricity deregulation, Elizabeth Killinger, president of Reliant and NRG Retail, says.Photo: Steve Gonzales, Staff Photographer / Houston Chronicle
There's been a lot of discussion recently around "power players" in the Texas electricity market and who's benefiting from the state's largely deregulated landscape — the customer or the industry? While everyone is entitled to their own opinion — and when talking about electricity, they are entitled to have choice — Houstonians should be given more than one side of the story.
Where are the headlines that focus on how the lights stayed on amid a record tight supply this past summer, or how a family new to Texas is excited to have innovative tools to help them understand and manage their electricity costs? What about the family that's conscious of whom they do business with or chooses a provider that supports their favorite charity? Or the busy mom who, through use of voice commands, doesn't have to lift a finger to pay her bill?
All of these innovations were made possible as a result of the Texas competitive electricity market. Consumers win when companies compete.
As with any household decision or purchase, consumers must take ownership in their energy choices. Consumers in Texas have approximately 130 companies to choose from when it comes to selecting their electricity provider and there is a wealth of information and resources available to help them choose.
Virtually everything we do in our home or business requires energy, so electricity providers focus on helping customers find the right plan to fit their lifestyle or business needs, while also educating them on ways to conserve and save both energy and money. We consider it a privilege to provide electricity to customers in competitive markets, and we work hard every day to earn their trust.
Believe it or not, one size does not fit all when it comes to consumer choices for electricity. An increasing number of consumers want the option to pick an electric plan that aligns with their lifestyle and values. We know this from conversations with those customers. You'll be hard pressed to find a variety of renewable plan options that allow the customer to power their home with 100 percent renewable energy, or support local solar, in a regulated market where consumers are captive to the monopoly local utility.
Weekly summary emails, payment via voice commands using smart technology and real-time usage tracking through a mobile app? Those are the result of innovation spurred by the competitive market. Today's consumer demands the same level of choice and customization with their electricity provider as they have come to expect with other products and services, such as banking, credit cards and mobile phones.
Innovation and savings can co-exist in a competitive market. According to the Association of Electric Companies of Texas, the lowest one-year fixed price offer available to customers on Power to Choose in the greater Houston area is approximately 40 percent lower than when the competitive market opened 18 years ago. This is a testament to the many benefits of competition.
Gap narrows
Coverage recently has drawn comparisons between competitive markets and municipal utilities that are still regulated. In fact, any historical price gaps in residential prices between deregulated and non-deregulated areas has nearly vanished within recent years, according to the updated September report of Texas Coalition for Affordable Power, a group of cities that buy power in the deregulated market.
Though recent media coverage has attempted to sway public opinion on competitive markets, there are other sides to the story. And although information is being twisted to fit a skewed narrative, we know Texans are a smart - and independent - bunch. They see past this, and we trust they are capable of making the best choice for their family and business needs. And if they need help along the way, we've got their back.
Elizabeth Killinger is president of Reliant and NRG Retail, where she is responsible for directing all aspects of the retail electricity business that serves more than 3.5 million homes and businesses across the U.S. and Canada.
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