Smart Shopping for Electricity

AUSTIN - May 21, 2001 - Shopping for electricity is a new concept for Texans, and the introduction of the Electricity Facts Label will help electric customers to make an "apples-to-apples" comparison of offers from competing electric providers. The Electricity Facts Label gives helpful information on prices, contract terms, generation sources and emissions in a standardized format.

The Electricity Facts Label is a product of a 1999 state law that restructures Texas' electric industry, allowing most Texans to choose a Retail Electric Provider (REP) - the company that provides their electricity. The Electricity Facts Label, which the Public Utility Commission of Texas (PUC) requires all REPs to provide to customers upon request, is similar to labels consumers typically see on a range of packaged foods and other items. By comparing prices, generation sources, emissions, and other factors, customers can make an informed decision about which REP is best for them.

"The Electricity Facts Label will have much of the information customers need to make a decision that best meets their needs," said PUC Commissioner Brett Perlman. "The Electricity Facts Label helps to make shopping easy."

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

Electricity Price: This provides information on how the REP will charge customers for electricity. It includes the average cost of electricity in cents per kilowatt-hour at various usage levels. This average price must include all charges assessed by the REP in selling electricity to customers.
Contract Term: This provides specific information on the REP's contract terms and conditions.
Sources of Power Generation: This provides a listing, on a percentage basis, of the fuel mix, such as coal, natural gas, nuclear energy, renewable energy and others, used to produce electricity for a REP's customers.
Emissions: This provides information on the amount of air emissions attributable to the sources of generation used to produce power.

The price comparison represented on the Electricity Facts Label is adjusted to include all 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.

This summer, under the Texas Electric Choice Pilot Program, up to 5 percent of the state's electric customers served by investor-owned electric utilities can choose their own REP. Most customers currently served by those utilities will have a choice of REPs next January, when Texas Electric Choice is fully implemented. Residential and small business customers interested in enrolling in the Pilot Program can visit the Texas Electric Choice Web site at www.powertochoose.org for more information.

When shopping for a REP, customers may want to consider the following steps:

Call/Click: Call the Texas Electric Choice Answer Center at 1-866-PWR-4-TEX (1-866-797-4839), or visit www.powertochoose.org for a list of REPs and helpful shopping tips.
Compare: Contact one or more of the certified REPs to obtain information on electric rates and services offered during the Pilot Program. You should have your latest electric bill available. Ask each REP for its Electricity Facts Label.
Choose: After you have compared offers, make an informed decision based on your needs and what matters most to you. When you sign up with a REP, it will enroll you in the Pilot Program. You do not need to contact your current electric utility to inform them of your choice.

Competition is expected to result in electric rates lower than they otherwise would have been under a regulated system, and should speed the development of new products and services.

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.

"There has been tremendous interest in the Pilot Program from business customers throughout Texas because they recognize they can save money by switching electric providers," said Commissioner Perlman of the PUC. "With the hot summer months on the way, residential customers should begin comparing offers from REPs serving their area to see if they can save money on electricity - and the Electricity Facts Label should help them make an 'apples-to-apples' comparison."

While the Pilot Program is scheduled to begin on June 1, it is important to remember that competition takes time to develop, and some areas of Texas may not yet have active REPs serving their market.

The Texas restructuring plan provides measures to ensure an ample supply of power to meet the demands of Texas homes and businesses. First, Texas has encouraged the construction of new power plants - more than 50 power plants have been built or are being built since 1995. Texas has also expedited the time it takes to build a power plant to about two years. Additionally, Texas has diversity in its generation of power, using natural gas, coal, nuclear energy, and renewable sources such as water, wind and solar energy. EDITORS: To download a sample of an Electricity Facts Label, visit http://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'll forward you a copy. To request Electricity Facts Labels from individual REPs, log on to http://www.powertochoose.org/, or contact individual REPs serving your area.

For a sample Electricity Facts Label click here.