De·regu·lation
(n). - To free from regulation, especially to remove government
regulations from: deregulate the energy industry.
In 1999 the Texas Legislature
passed Senate Bill 7, which creates competition in the sale
of electricity in Texas. This allows customers to choose from
the many retail electric providers, allowing them to shop for
the best possible rate.
Retail Electric Providers (REP)
are companies that buy electricity directly from the power plants
and deliver that power to you.
This does not change how you
receive your electricity. The energy is still delivered to you
by the same regulated transmission and distribution facilities
that serve you now. The same lines that are in your neighborhood
will still be used.
This creates competition that
results in these key changes.
First, your bills will come
from a different provider offering a better rate.
Second, the customer service
level will rise in order to keep you as a client.
Third, cleaner air in Texas.
The price to beat
Senate Bill 7 also included
a standard rate known as "the price to beat." They
established this rate by taking the average bundled residential
and industrial rates as of January 1, 1999 and reduced them
by 6%. This is the rate in which competitors strive to beat.
The bill also included these
consumer protections:
Protection against service
disconnection
Flexible billing options
and easy to read bills
Offer 10% reduction for
low-income Texans
Requires power plants to
reduce harmful emissions and increase their generating power
capacity by using renewable resources like the sun and wind
power.
Utility
Discounters
