The Alliance for Retail Markets (ARM), a group of competitive
electricity providers serving Texas consumers is heralding the first
year of the Texas Electric Choice program as a success. The coalition
cites higher than expected switching levels, consumer savings, and a
robust competitive landscape as reasons for success.
The latest numbers from the Public Utility Commission of Texas show that
over 320,000 residential customers, or roughly 6.5 percent, have already
switched to a new electric provider. Many of these customers are seeing
a substantial cost savings of between $6 and $14 on their monthly bills
as a result of their decision to switch providers. Others are switching
to providers that offer cleaner electricity or the promise of improved
customer service.
"We have been very pleased with the level of activity in the market this
past year," said Gillan Taddune. "Many people were looking to Texas as a
model for electric choice. The past year is proof that competition can
work and consumers of all types can reap the benefits."
The commercial and industrial market was also very active last year,
with more than 80,000 customers switching providers in 2002. Through
August, 2002 commercial and industrial customers have saved an estimated
$645 million as a result of retail customer choice.
"Our customers have certainly realized the benefits of electric
deregulation," said Chuck Sutton. "Through the Texas Electric Choice
program, we have been able to offer customers options in selecting an
energy partner that best meets their specific business needs and energy
requirements and with a significant cost savings compared to regulated
entities."
Looking forward to 2003, ARM is optimistic that the market will continue
to thrive and mature. ARM continues to support the restructuring
legislation passed in 1999 because it has provided a solid framework for
electric choice, although there are some aspects of the law that could
be improved. ARM is committed to working with the PUCT and other groups
to strengthen the law where appropriate in order to ensure that all
market participants, especially consumers, can have confidence in the
Texas electric market.
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