A popular joke making the rounds these last few months has been that the good citizens of Louisiana now have a bumper sticker that says “Thank God for Illinois!” The ethical craziness that once plagued the Bayou state has been forgotten ever since Rod Blagojevich and Roland Burris became role models for government graft and corruption.
In this legislative session with electricity regulation back on the table, the hazard we now risk is whether or not our friends in California, home to rolling blackouts and high energy prices, will one day have their own bumper sticker that says “Thank God for Texas!”
State Sen. Wendy Davis (D-Fort Worth), along with state Rep. James Keffer (R-Eastland) have introduced a bill to allow local governments to collectively negotiate bulk-rate electricity prices for their constituents. Residents who don't like their plan can "opt out."
But the Davis-Keffer proposal raises a few eyebrows.
First, why should Texans have to opt out of something they might not have wanted in the first place?
If someone is happy with the plan they have it is fundamentally unfair to force them into a government plan and then make them go through the trouble of resigning from it.
Second, according to the Texas Public Policy Foundation, in Dec. 2001 the lowest per kilowatt hour, adjusted for inflation, was 11.4 to 12.6 cents. In Feb. 2009 and with a deregulated market, the price was 8.9 to 10.4 cents, a decrease of 19 percent.
Competition lowers prices. The same study also found that since deregulation the five companies that had a monopoly on Texas electricity have seen a 56 to 80 percent drop in their market share. Today, the average Texas consumer can choose from 23 different providers offering 85 different rate plans. Two years ago it was 17 providers and 36 plans respectively.
There is a virtue to letting people run their own affairs, and that tradition is why many people here proudly say "Thank God for Texas!"
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