Most Texans Now Have Power to Choose Their Electric Provider

Business Wire, Dec 28, 2001

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--Dec. 28, 2001

Texas Retail Electric Market Opens to Competition January 1;

Public Utility Commission Will Continue to Ensure

Safe, Reliable Electric Service

Most Texans can add a new item to their annual post-holiday shopping list: choosing the company that provides electricity to their homes or businesses.

Now, most Texans will have the power to choose a Retail Electric Provider (REP). REPs will compete for your business, often offering lower prices, renewable energy options, added customer service, or other incentives.

"Shopping" for electricity is a new concept for Texans, and there is no need to worry for those individuals not ready to select a new provider. The lights will stay on. Customers who aren't ready to select a new REP will automatically be served by an Affiliate REP -- a company affiliated with their current electric service provider.

Each Affiliate REP will offer customers a standard rate for electric service, or "Price to Beat," which includes a six-percent discount on their base rates (adjusted for fuel prices).

Those Texans who are ready to shop for a new REP will have the option of choosing a company that meets their needs and may see even greater savings.

The Public Utility Commission of Texas (PUC) will no longer set rates for electric service -- they will be determined by the competitive electric marketplace. However, the PUC will continue to regulate the delivery of electricity to ensure safe and reliable electric service. Local Distribution Utilities will continue to maintain poles and power lines and will respond to emergencies and power outages.

Not all electric service territories in Texas will be open to competition on January 1. Competition has been delayed in portions of Northeast Texas served by SWEPCO, parts of Southeast Texas served by Entergy, areas of the Texas Panhandle served by SPS, and portions of West Texas served by El Paso Electric. In addition, customers served by city-owned utilities or electric cooperatives will not be offered competition unless their local service provider decides to compete against REPs.

Texans interested in learning more about electric competition should visit www.powertochoose.org, or call the Texas Electric Choice Answer Center toll-free at 1-866-PWR-4-TEX (1-866-797-4839 or TTY 1-877-864-4725).

In the meantime, there are 10 things electric customers should know about Texas Electric Choice:

                  TOP 10 THINGS YOU SHOULD KNOW ABOUT
                         TEXAS ELECTRIC CHOICE
           Electric Competition in Texas Begins January 2002

1.   Beginning in January 2002, most residential and small commercial
     customers in Texas will be able to "shop" for electricity.
     Companies called Retail Electric Providers (REPs) will compete
     for your business, often offering lower prices, renewable energy
     options, added customer service, or other incentives.

2.   If you are not ready to select a REP, don't worry. You will
     continue to receive power. Your electric service will be provided
     by an Affiliate REP -- a company affiliated with your current
     service provider. If you choose to stay with the Affiliate REP,
     you will receive a standard rate, or "Price to Beat," which
     includes a six-percent rate decrease adjusted for fuel prices.
     Competing REPs may offer rates lower than this, or other product
     and/or service options.

3.   In a competitive electric market, customers' current service
     providers, now known as Local Distribution Utilities (LDUs), will
     continue to maintain poles and power lines. Local Distribution
     Utilities also are responsible for responding to emergencies and
     power outages.

4.   The Public Utility Commission of Texas will continue to regulate
     the delivery of electricity to ensure safe and reliable electric
     service.

5.   Customers need only contact their new REP if they wish to switch
     providers. The specifics of your electric service will be based
     upon a Terms of Service document, or contract, with the REP of
     your choice. Once you have signed up with a new REP, you will
     receive a notice in the mail that a request has been made to
     switch service to a new provider. If you change your mind and
     decide not to switch, the notice will provide information for you
     to cancel your switch request.

6.   To help customers make an "apples-to-apples" comparison of
     competing REP offers, the PUC requires all REPs to provide
     customers with an Electricity Facts Label upon request. The
     Electricity Facts Label, like a nutrition label found on many
     food items, contains the details of a REP's price of electricity,
     contract terms, sources of generation, and emissions.

7.   The PUC has designated certain companies to serve as Providers of
     Last Resort, or POLRs. The POLR serves as a back-up provider. If,
     for example, your contract with your REP is terminated or if your
     REP goes out of business, you will be transferred automatically
     to the POLR, unless you find another REP to serve you. A REP may
     terminate your contract for electric service, but only the POLR
     can disconnect your electric service.

8.   The PUC will continue to enforce customer protections, including
     protecting against cramming, slamming and discrimination,
     ensuring proper dispute resolutions, maintaining customer privacy
     and establishing "No Call Lists" for customers who do not want to
     receive telemarketing calls.

9.   Discount and payment programs are available for qualified

     low-income customers. Call toll-free 1-866-4-LITE-UP
     (1-866-454-8387) for more information or to obtain an application
     form.

10.  To learn more about electric competition, the PUC has established
     the Texas Electric Choice education campaign. Call toll-free
     1-866-PWR-4-TEX (1-866-797-4839 or TTY 1-877-864-4725) or visit
     www.powertochoose.org for more information.