Update on Electric Deregulation

Thursday, November 29, 2001
Update on Electric  Deregulation
Article
The Texas Electric Choice Act restructured Texas' electric industry to allow customers to choose their electric companies beginning on January 1, 2002. What does this mean for Texans? The three electrical cooperatives in our area, and Whitesboro, the only municipal utility, will not be affected because they have chosen not to participate at this time. Customers of Texas Utility and Texas-New Mexico who decide not to choose a new electric provider, it's very simple; do nothing. Customers who do not choose will automatically begin receiving electricity on January 1, 2002 from an offshoot of their current utility. The rates for these customers will be reduced by 6%. (Note that a 6% reduction in the rate won't reduce your total bill if your usage goes up by 6% or more.) The only increase allowed will be a pass-through of any increased fuel cost. Meanwhile, customers are free to shop around for the electric company that offers the best prices and most innovative services. Providers will want information on your past usage and about any plans for a substantial increase in usage. Compare the rates offered with your current rates, considering the 6% discount. A long term contract may be an option so consider the pros and cons of this choice. Be sure the company is large enough to provide reliable uninterrupted supply of electricity. Consider extra services available. Once you have decided on a new electric provider, contact that provider to find out what needs to be done to begin switching, such as signing a service contract. A few days after requesting the switch, the customer will receive a post card in the mail that verifies the switch, giving the customer 10 days to cancel. This helps to insure that customers will not be "slammed" (switched to a new provider without the customer's authorization.) The transmission lines will continue to be operated by another offshoot of your current utility. Transmission will continue to be regulated by the PUC. This prevents the waste of every company erecting its own lines. Electricity will be provided over those lines by various companies like long distance service is provided over phone lines. The Texas Electric Choice Act was passed after years of study and debate. We have tried to avoid the problems suffered by California and other states. If you have questions or problems, you can call the PUC at 1-888-782-8477 or your electric provider. State Representative Ron Clark P.O. Box 2910 Austin, TX 78768-2910 (903) 893-9426 * (512) 463-0474 (512) 475-3767 (fax)
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Published Thursday, November 29, 2001
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