Public Utility Commission Unveils

AUSTIN - Texas Electric Choice, the public education campaign created to inform Texans of their right to choose their Retail Electric Provider (REP), kicks off this month with an information insert in utility bills for non-residential customers, a series of advertisements, a toll-free customer information line (1-866-PWR-4-TEX) and the launch of a new Website (www.powertochoose.org).

In 1999, the Texas Legislature passed Senate Bill 7, designed to give electric customers greater control over their electric buying decisions. This means that customers will be able to shop around for the best electricity deal, much as they do for groceries or automobiles. The law also ensures electric customers the same reliability and safety as their current electric service. The new law allows municipally-owned utilities and electric cooperatives to decide whether their customers will have a choice of providers.
Electric retail competition will begin with a Pilot Program, for 5% of the customers served by investor-owned utilities, on June 1, 2001. Full retail competition will begin on January 1, 2002. In February, all non-residential customers currently served by an investor-owned utility will receive a bill insert about the retail Pilot Program. This marks the kick-off of the PUC' s customer education campaign.

Only electric customers of Texas' investor-owned utilities, including American Electric Power (Central Power & Light, Southwestern Electric Power Company), Entergy, Reliant Energy, Texas New Mexico Power, TXU Electric, TXU SESCO and Southwestern Public Service Company will be able to participate in the Texas Electric Choice program. Customers of El Paso Electric will not receive customer choice until January 1, 2005.

Non-residential customers may sign-up for the Pilot Program from February 15, 2001 to March 15, 2001. If more than 5% of each current electric utility's customers sign-up for the Pilot Program, then a lottery will be conducted to select the participants.

Here are a few tips on how non-residential customers can participate in the Pilot Program:

Non-residential customers can visit their current electric utility's Website for information on how to enroll in the Pilot Program. Customers should have their latest utility bill available.
Your current electric utility will make information available on its Website no later than March 21, 2001 regarding which customers have been selected to participate in the Pilot Program.
Non-residential customers must contact a Retail Electric Provider (REP) and sign a contract by May 10, 2001 to participate in the Pilot Program.
Non-residential customers interested in joining the Pilot Program through an aggregator, or buying group, should visit the Texas Electric Choice Website at www.powertochoose.org for a list.

Residential customers will receive information about the Texas Electric Choice program and their opportunity to participate in the Pilot Program with their March electric bill.

Both non-residential and residential customers who do not want to participate in the Pilot Program will continue to receive the same electric service from their current electric utility, and no one can switch their service without approval.

"Many people may not realize this, but efforts to give Texans a choice of electricity providers has been in the works for several years," said Pat Wood, Chairman of the PUC. "Texas electric customers will now be able to select the electric provider that best suits their needs."

"Competition tends to result in prices lower than they otherwise would have been under a regulated market, and it usually leads to the development of new products, services and technological innovations," said Wood. " During the Pilot Program, customers should try to learn how the Texas Electric Choice program works and make informed decisions about their electric provider."

The introduction of competition for electric service will not affect the reliability of the current system. Specifically, under the Texas Electric Choice program:

Customers will continue to receive electricity over the same poles and wires as they do today. There will not be multiple wires criss-crossing your neighborhood.
The current electric utility will continue to be responsible for restoring service in the event of a storm or accident.
The PUC will continue to ensure that customers receive safe, reliable electricity.

Since 1995, 47 new power plants have been built or are being built in Texas. There is plenty of power in Texas.

The PUC and Texas Electric Choice campaign encourages customers to compare the service offerings of competitive REPs. Customers should ask REPs for their "Electricity Facts Label," which will provide information on prices, terms and conditions, sources of power generation and emissions and waste per kWh generated. This information will allow you to compare the offerings of different REPs.

A wide range of informational materials - including a list of REPs certified by the PUC - is available at the Texas Electric Choice Website (www.powertochoose.org). Educational materials are available in English and Spanish, and alternative materials will be provided via the Website for customers with visual impairments, as well as a toll-free TDD number (877-864-5678).

For more information about Texas Electric Choice, visit www.powertochoose.org, or call our answer center toll-free 1-866-PWR-4-TEX (866-797-4839).