la Frontera In the News
Round Rock Leader
January 3, 2002
Companies Finalizes rates as deregulation era begins
by Kathryn Culver, Leader Staff
The New Year ushered in the first ever deregulation of Texas power companies, giving electricity customers the opportunity to choose their provider.
Up until Jan. 1, customers in Round Rock and much of Texas could purchase electricity only from TXU Electric, but the area now has five additional power providers capable of serving customers.
The Texas State Legislature made electrical utility deregulation mandatory in 1999 for investor-owned utilities like TXU and Reliant. The 1999 restructuring law required a rate cut to be established when the field opened to competition and in December, the state's Public Utility Commission finalized what they're calling the "Price-to-Beat," a benchmark rate that will help customers comparison shop.
"With the start of competition, Texans will be able to select their electric provider for the first time in our state's history," PUC Chairman Max Yzaguirre said in a press release. "The Price-to-Beat rates that we've established strike a good balance between immediate customer savings and attracting retail electric providers to enter our market and offer even greater savings and service innovations."
Electricity Providers
in Round Rock |
| First Choice Power, Inc. |
| Gexa Energy |
| Green Mountain Energy Company |
| The New Power Company |
| Reliant Energy Retail Providers |
| TXU Energy Services |
| *Texas Electric Choice website, www.powertochoose.org |
The PUC designed a rate that would offer a discount to customers who do not switch, but that will also establish a rate competitors can challenge.
TXU Electric's current rate is 9.67 cents per kilowatt hour. The legislatively-mandated Price-to-Beat rate is 8.25 per kwh.
The new retail electric providers, not associated with TXU or its affiliate, can offer rates below. But TXU's REP, TXU Energy Services, must offer that rate until 2007. If 40 percent of its customers switch, TXU can offer a different rate to contiue being competitive.
Round Rock residents can now choose between TXU's Energy Services, Gexa Energy, Green Mountain Energy Company, First Choice Power, Inc., The New Power Company and Reliant Energy Retail Providers.
State-mandated deregulation essentially forces utility companies to open up their service areas. For customers, the source of electricity coming into their homes will not change. The utility end of TXU Electric will continue to provide power over its established lines. The only choice cutomers have is who to purchase it from.
If a customer chooses not to switch, they will automatically be serviced by TXU's REP, and receive the Price-to-Beat rate.
Texas Electric Choice, an organization established by the state, serves as a non-biased source for customers to obtain information about deregulation and company choice.
TEC's website, www.powertochoose.org, provides comprehensive information on how to change REPs and links to each company's website and rate information.
