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Texas Deregulated Electric Utility Market is Fine

 
 

ODESSA, TX-Despite some disagreement within the ranks, the Texas deregulated electric utility market is just fine, a member of the Public Utilities Commission of Texas says.

State Rep. Steve Wolens, co-chair of the joint committee on oversight of electric utility restructuring and a co-author of the 1999 deregulation law, in June called for an overhaul of the Electric Reliability Council of Texas (ERCOT). Wolens proposed a restructuring of the board so that staff members would have more independence and the board would be less influenced by private industry.

But Public Utility Commission Chairman Rebecca Klein, on a statewide "deregulation education campaign," gave high marks to the legislation that opened the electric industry to competition, saying it created a "good market paradigm," the Odessa American reported. Klein said she and other state legislators monitoring retail competition agree they can "live with Senate Bill 7 as is," the paper reported.

A spokesperson for TXU Energy agreed, saying that early problems have been worked out and that only minor tweaking remains to be done. New service and billing problems prompted most of the complaints about delays.

State Sen. Teel Bivins (R-Amarillo) told the newspaper that Texas has largely avoided the pitfalls that caused problems in other states and particularly in California. "If we see anything that's not being dealt with by ERCOT or the PUC, I anticipate the legislature will act," he said. Bivins, who, like Rep. Wolens, is a member of the oversight committee, said he would be watching for signs of energy merchants trying to game the system.

Energy & Power Management