Key Points
The Texas market is working, as consumers and producers find innovative ways to reduce costs and enhance service quality. Still, Texas can make further policy improvements to enhance its competitive market.
Recent price fluctuations indicate a healthy Texas market, which provides the proper signals to investors on where, when and how to invest. They also provide an incentive for active consumer participation like shifting consumption and investing in back-up generation.
Texas has the most consumer-friendly electricity policy in the country, as evidenced by downward pressure on retail rates and an array of product offerings.
Texas has the best market structure to signal resource investment and integration, especially for variable and use-limited resources, suggesting that it offers the best model for affordable decarbonization in the country.
Image credit: Per Bengtsson
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