Consumers in Texas should shop for electric companies the way they shop
for cars or clothes: the price matters, but so does the quality and the
source of power. Consumers need to understand the environmental quality
differences among the electricity service choices offered in the new
retail competitive market. With competition, you the consumer have the
opportunity to choose cleaner, greener electricity from among the new
choices competition offers.
In the past, individual electric companies, local utilities, provided
all the parts of your electric service (generation, transmission,
distribution, and retail sales). This means that the local utility
supplied the power, read your electric meter, fixed any electric line
problems, and determined what the sources of electric generation would
be.
Because electricity consumers had no option to switch companies,
utilities were able to install any facilities they felt necessary with
little input from residents and consumers.
Before deregulation electric companies were in charge of the generation,
transmission and distribution of electricity. They operated as a
regulated monopoly, and had the sole rights to sell electricity in a
particular region. On January 1, 2002, Texas opened its electric system
to retail competition. With competition, these parts are separated.
The actual delivery of electricity across poles and wires to your home
or business is called transmission and distribution. These services are
provided to you by the local wires company, which is responsible for
maintaining the poles and wires, and responding to emergencies and power
outages as always. The PUC continues to regulate the delivery of
electricity to ensure the safety and reliability of your electric
service.
With electric competition, retail electric providers ("REPs") sell
electricity to you and provide functions such as customer service and
billing. Retail electric providers compete for your business by offering
lower prices, renewable energy options, added customer service benefits
or other incentives.
Generally there are two types of REPS: affiliate retail electric
providers and competitive retail electric providers.
The affiliate retail electric provider was part of the original electric
company that generated and sold electricity in your area. Now, the
affiliate REP only sells electricity and provides customer service.
The competitive retail electric providers are new, competing with other
REPs for your business. You can choose a competitive REP at any time.
However, if you are not ready to choose a competitive REP, your electric
service will continue to be provided by the affiliate REP. This company
offers a standard rate for electric service called the "Price to Beat,"
which is set by the PUC. Competitive retail electric providers may offer
prices even lower than the Price to Beat, and you may switch providers
at any time.
You may obtain information on the Price to Beat by contacting your
affiliate REP and asking for a copy of its Electricity Facts Label, or
you may visit the Texas Public Utility Commission's Electric Choice
website at www.powertochoose.org and enter your ZIP code in the "Compare
Offers" section. The Electricity Facts Label provides standardized
information on electric service, including details on prices, contract
terms, sources of generation and emissions.
http://www.powerscorecard.org/state_issues.cfm?state_cd=TX
Electric Companies
