Rewired for Competition: The Restructuring of Electricity Markets in Texas

Traditionally, the U.S. electric utility industry has been subject to a comprehensive system of government regulation. However, in the 1980s, policymakers and economists increasingly questioned the need for regulatory oversight of some utility functions. Particularly in Texas, the potential for competition in the generation of electricity had become greater. Beginning in the mid-1990s, states with high energy costs announced plans to restructure their electricity markets in hopes that greater competition would lead to lower costs and greater choices for consumers. Texans can also expect to see changes in their electricity market. How will these changes affect current prices and the Texas industry?