For the third year in a row, Texas was No. 1 among all states in 2015 for business facility investments, according to Site Selection magazine. It’s a great accomplishment, particularly because the list only considers investments that involve at least $1 million in capital, 20 new jobs and 20,000 square feet of new space.
From the Statehouse to main street chambers of commerce, those of us involved in attracting business investments and providing services know that Texas’ favorable tax environment and the abundance of affordable labor are big drivers in siting and expansion decisions.
With energy representing a significant business cost, Texas’ innovative and vibrant electricity market, its highly dependable generation and distribution networks and competitively priced renewable resources all are additional factors that have contributed to Texas’ success in securing business facility investments.
Just more than a dozen U.S. states have policies that allow business owners to work directly with electricity providers, and only Texas’ retail electricity market is accessible to all businesses that are in areas open to competition. That direct negotiation opens the door for highly tailored contracts that meet each business’ unique needs, as well as its individual tolerance for risk in electricity spending.
In addition to competitive commodity pricing, the level of competition to serve a business’ electricity needs has generated innovative services that deliver further benefits. For example, some of the strongest retail electricity providers work very closely with business customers to develop co-marketing campaigns that bring tremendous value. Others provide investment and expert advice for energy efficiency projects that provide sustainable solutions and economic savings.
Competitively priced renewable electricity also is a key factor in siting and expansion decisions because it provides the positive effects of a “green halo” without driving up underlying costs.
TXU Energy proudly powers thousands of Texas businesses, and we take great pride in providing innovative and cost-effective solutions to our customers.
Castro is vice president of business markets for TXU Energy. He is a native Texan who has worked in the state’s energy sector for more than 20 years.