Smart Shopping for Electricity

AUSTIN - October 11, 2001 - Texans needing information to help them compare competitive offers for retail electric service can now get a brochure entitled, "The Electricity Facts Label: What It Is and How It Will Help You Shop for Electricity." Competition for the retail sale of electricity begins in January 2002, and the Electricity Facts Label will help customers decide between competing suppliers when shopping for electricity.

The brochure, produced by the Public Utility Commission of Texas (PUC) and the Texas Electric Choice education campaign, provides details about how the Electricity Facts Label will help customers make a direct comparison when choosing a Retail Electric Provider (REP) - the company that provides electricity to homes and businesses.

The Electricity Facts Label, similar to a nutrition label found on many food products, provides helpful information on electricity prices, contract terms, generation sources, and emissions in a standardized format. This information will help customers make an informed decision about their electric service.

Under the 1999 state law that restructures Texas' electric industry and gives Texans a choice of electric providers, each REP is required to provide its Electricity Facts Label to customers upon request.

"The Electricity Facts Label will have much of the information customers need to decide which REP's service plan best meets their needs," said PUC Commissioner Brett Perlman. "The Electricity Facts Label will help make shopping for a new electric provider simple."

Each REP's Electricity Facts Label is formatted in a uniform way that enables electric customers to compare the following factors:

Electricity Price: This includes the average cost of electricity in cents per kilowatt-hour at various usage levels. The average price must include all charges assessed by the REP in selling electricity to customers, including promotions, discounts, or incentives offered by the REP. For example, a REP offering customers one month of free electricity must include this incentive in its price per kilowatt-hour to reflect the free month of service.
Contract Terms: This provides specific information on the REP's minimum contract period and any penalties assessed to customers for early cancellation of their contract.
Sources of Power Generation: This provides a listing, on a percentage basis, of the fuel mix used to produce electricity for a REP's customers, such as coal, natural gas, nuclear energy, and renewable energy.
Emissions: This provides information on the amount of air emissions attributable to the sources of generation used to produce power for the REP's customers.

While most Texans will soon have the opportunity to shop for a new REP, those customers not interested in selecting a new REP will have their electric service provided by a REP affiliated with their current electric utility. This seamless transition will occur in January 2002. Lawmakers gave cities that own their electric systems and member-owned electric cooperatives the option of allowing REPs to compete for their customers, or keeping things the way they are today.

To obtain a copy of "The Electricity Facts Label: What It Is and How It Will Help You Shop for Electricity" brochure, customers may contact the Texas Electric Choice answer center toll free at 1-866-PWR-4-TEX (1-866-797-4839). Customers also may download a copy of the brochure from the Texas Electric Choice website, www.powertochoose.org.

EDITORS: To download a sample of an Electricity Facts Label, visit www.powertochoose.org/residential/choosing/worksheet.html. Or, if you would prefer a camera-ready version of the Electricity Facts Label, contact one of the names at the top of this release, and we will forward you a copy. To request Electricity Facts Labels from individual REPs, log on to www.powertochoose.org, or contact individual REPs serving your area.