Political Updates
Chapter Eight: Public Policy and Administration

Public Utilities, pg. 335

The focus of PUC has shifted from rate making to supervision of competition among utility companies. Under terms of the Texas Electric Choice Act of 1999, for example, rates charged by existing investor-owned power providers (like Dallas-based TXU for North Texas and Houston-based Reliant Energy HL for southeast Texas) were frozen from September 1, 2000, until January 1, 2002. Then rates were to drop 6 percent for atleast 5 years or until provider loses 40 percent of its customers to competitors. In addition, on the first day of January 2002, consumers became free to switch to any competing retail electric provider (REP) offering a better deal. REPs and their rates are listed on the PUC Web site www.puc.state.tx.us. Also, at the start of 2002, each existing provider was allowed to compete as a REP in other areas. To test the Electric Choice system, a phase-in or pilot program involving limited numbers of residential and commercial customers was conducted during the final months of 2001.