Business Customers Flocking

AUSTIN - March 20, 2001 - Commercial and industrial businesses across Texas are lining up to participate in a Pilot Program that allows them to choose a Retail Electric Provider (REP) - the company that provides their electricity, according to figures released Monday by the Public Utility Commission of Texas (PUC).

Interest from business customers in the Texas Electric Choice Pilot Program has been so strong that each of the state's investor-owned electric utilities will have to conduct a lottery by March 21 to determine which of their customers will be included in this summer's test run for Electric Choice. The Pilot Program is limited to 5 percent of each customer class served by investor-owned utilities in Texas.

Following the lottery, business customers can find out if they were selected for the Pilot Program by returning to their utility's Pilot Program registration website and entering their account information. If they have been selected, they may then begin shopping for their new REP.

Based on figures released Monday, seven out of Texas' nine electric utilities will hold a lottery for industrial customers, and eight out of nine will conduct a lottery for commercial customers. Each of the utilities still has room available for small business customers in the Pilot Program.

"We're pleased to see such a favorable response to the Pilot Program from business customers," said Pat Wood, chairman of the PUC. "It's clear businesses see value in having a choice of electric providers."

All told, commercial and industrial customers have applied for a total of five million kilowatts, far exceeding the space available to non-residential customers in the Pilot Program.

Because the 5 percent cap on Pilot Program participation is set within each utility's service area, the chance that a particular customer will be selected to participate will vary from utility to utility. To remain eligible for the Pilot Program, businesses must contact a REP and have a contract signed by May 10. If a contract is not complete, that Pilot Program slot will be opened to other business customers on a first-come, first-serve basis. Utilities will post open Pilot Program positions on May 17. Businesses not selected in the lottery can then turn in a signed contract to the investor-owned utility to be included in the Pilot Program.

Residential customers' participation in this summer's Pilot Program is on a first-come, first-served basis, and is limited to 5 percent of each investor-owned utility's customers.

"The Pilot Program gives Texans the opportunity to test the water and find out how competition will affect their electricity service and their bills," said Wood. "It also serves as a dry run for the State and Retail Electric Providers to work out any kinks in their computer and billing systems before electric choice is fully implemented in January."

Investor-owned utilities in Texas include: American Electric Power (Central Power & Light, Southwestern Electric Power Company, West Texas Utilities), Entergy, Reliant Energy, Texas New Mexico Power, TXU Electric, TXU SESCO and Southwestern Public Service Company. Most customers of these utilities will be able to participate in the Texas Electric Choice Pilot Program. Customers of El Paso Electric will not receive customer choice until January 1, 2005.

The PUC has created a public education campaign, called Texas Electric Choice, to inform Texans of their right to choose the company that provides their electricity. Electric Choice begins with this summer's Pilot Program, under which a maximum of five percent of both business and residential customers can choose their electric provider. Customers participating in the Pilot Program can have their service switched to a new REP beginning on June 1.

State lawmakers gave cities that run their own electric systems, along with electric cooperatives, the option of entering the competitive market, or keeping things the way they are today.

"Competition should result in lower prices, and based on what we've seen in other industries that have recently been deregulated, competition should lead to the development of a host of new products and services for customers," Wood said.

"While retail electric service will be open to competition, the delivery of electricity to Texas homes and businesses will remain regulated by the PUC," Wood said. He also noted that state lawmakers and the PUC have taken measures to ensure Texas has an ample supply of power to meet the demands of Texas homes and businesses.

"Unlike California, we've got plenty of power in Texas," Wood said. "Even on the hottest day this summer, during peak demand, we' ll have more electricity than we'll need."

For a complete breakdown of business customers' participation in the Texas Electric Choice Pilot Program by electric utility, visit the PUC' s website at: www.puc.state.tx.us/electric/projects/22834/22834goals.cfm

For more information about Texas Electric Choice, visit www.powertochoose.org, or call our answer center toll-free at 1-866-PWR-4 TEX (866-797-4839). Educational materials will be available in English and Spanish, and alternative materials will be provided on the website for customers with visual impairments. Customers also can call our toll-free TDD number (877-864-5678).