05/09: The Texas House of Representatives unanimously approved Senate Bill 547 and House Bill 870. The two bills delay deregulation of electric utilities in Northeast Texas indefinitely.
Source: Texas Legislature Online
http://www.legis.state.tx.us/

04/09: Senate Bill 547 and House Bill 870 were introduced into the Texas Legislature to halt electricity deregulation in Southwestern Electric Power Company’s service area in Eastern Texas in 2011. Under these two bills, a pilot program would first need to prove that electricity deregulation would lower rates before the entire service area could be deregulated.
Source: Texas Legislature Online
http://www.legis.state.tx.us/

06/08: The Public Utility Commission (PUC) urged customers of Sure Electric, LLC, also known as Riverway Power Company, to shop for a new provider as the Electric Reliability Council of Texas (ERCOT) began the process to switch Riverway customers to a Provider of Last Resort (POLR). ERCOT began the switching process for approximately 6,200 customers on Tuesday, June 10.
Source: Public Utility Commission of Texas
http://www.puc.state.tx.us/

02/04: The Texas Public Utilities Commission (PUC) set forth a rule establishing new monitoring, enforcement and market behavior standards for the wholesale electric market. The new rule 1) clarifies the standards and criteria the PUC will use when reviewing market participants’ activities; 2) requires market participants to maintain records showing compliance; 3) identifies the role of the Electric Reliability Council of Texas (ERCOT) in enforcing operating standards; 4) and establishes a PUC process for an expedited informal review of market participant activities.
Source: Texas Public Utilities Commission
http://www.puc.state.tx.us/nrelease/2004/021804.cfm

05/03: The Texas Public Utilities Commission has delayed retail choice in Northern Texas, which comes under the jurisdiction of the Southwest Power Pool (SPP) Regional Transmission Organization, until 2011.
Source: Texas Public Utilities Commission
http://www.puc.state.tx.us/rules/subrules/electric/ch25complete.pdf

12/02: Central Power and Light, a subsidiary of American Electric Power, filed its divestiture plan with the Public Utility Commission of Texas. The utility proposes to sell its generating assets to determine the level of stranded costs that may be recovered, as provided for under Texas’ restructuring law, SB 7. According to an AEP press release, “the assets to be sold have a nameplate generation capacity of 4,241 megawatts and a net book value just under $1.9 billion.” The proposed plan “does not include power plants owned by other AEP subsidiaries in Texas – West Texas Utilities (WTU) or Southwestern Electric Power Company – as AEP is not seeking stranded cost recovery for those generating assets.”

10/02: The Texas Public Utilities Commission issued a settlement agreement for NewPower’s exit from the Texas retail electric market. According to a PUC news release, NewPower’s final bills must follow PUC rules. “Customers with past due bills of more than $50 may request a deferred payment plan,” but they “will not be charged any late fees or penalties.” The NewPower call center will remain “open until December 30, 2002 or the 61st day after NewPower issues its final bill, whichever date is later.” All complaints received by October 16, 2002 must be resolved, and “all other complaints sent by the PUC to NewPower must be resolved within 21 days.”

08/02: The PUC approved a new rule that prohibits retail electric providers (REP) from transferring non-paying customers to the Provider of Last Resort (POLR). As of September 24, 2002, residential and small commercial customers who have switched to an REP will not be transferred to the POLR because they did not pay their electric bill. According to a PUC press release, "they will be switched to the affiliated REP and be charged the Price-to-Beat rate, which is lower than the current POLR rates." Also, current affiliated REP customers will not be switched to a POLR for non-payment. POLR customers must choose a REP before December 31, 2002 or they "will be served by the POLR's competitive affiliate at an unregulated rate."

08/02: The Texas Public Utilities Commission approved a rate increase due to rising fuel costs. According to a PUC press release, Texas' restructuring legislation, Senate Bill 7, provides that the PUC can raise rates "twice a year if natural gas prices increase at least four percent over a 10-day period." The PUC is considering this issue and may change it in the near future, but the Commission stated that customers are still paying "approximately 10 percent" less than last year. Customers should see the fuel cost increase on their October bills.

08/02: As part of the upcoming "Report to the 78th Legislature on the Scope of Competition in Electric Markets," the PUC released its July 2002 Report Card on Retail Competition. According to the report card, 349,612 switch requests have been completed as of July 22, 2002. There was a 31 percent increase in switching activity since the May 2002 Report Card. The final report will be given to the Legislature in January 2003.

07/02: As part of the upcoming "Report to the 78th Legislature on the Scope of Competition in Electric Markets," the PUC released its June 2002 Report Card on Retail Competition. According to the report card, 262,593 switch requests have been completed and 39,634 switch requests are either in review or scheduled. There has been a 9 percent increase in switching activity since the May 2002 Report Card on Retail Competition. The final report will be given to the Legislature in January 2003.

06/02: New Power Company customers will be switched to either TXU Energy (TXU) or Reliant Energy Retail Services based on the customer's location. The PUC struck an agreement with the two companies to prevent the customers from being switched to provider of last resort (POLR) service. According to a PUC press release, TXU will take on New Power customers in the Houston metropolitan area, and Reliant will take on New Power customers in the Dallas-Fort Worth area and areas in north and west Texas. Reliant and TXU will offer rates "significantly below POLR rates" and below each other's proposed "price to beat" rates, which will be reviewed by the PUC this month. Since the agreements provide for monthly service contracts, customers can switch to another service provider at any time "without a fee or penalty."

03/02: According to a press release, the Public Utility Commission of Texas (PUC) "issued an interim order approving a procedure to allow for the transfer of customer contracts from an Enron subsidiary, Enron Energy Services, Inc. (EES), to Constellation Power Source, Inc. The order also prohibits EES from marketing to or serving customers in Texas pending the sale. This action will allow EES customers to keep the existing contract terms with a qualified provider who buys the contracts from EES or to opt out of their contracts with EES and choose another retail electric provider (REP)."

03/02: The Federal Energy Regulatory Commission delayed deregulation in Southeast Texas from September 15, 2002 until 2003 because no consensus has been reached on the formation of a regional transmission organization.

12/01: The PUC set the "Price to Beat" for the six utility-affiliated retail electric providers in the State. Customers who do not choose to switch to an alternative retail electric provider will continue to receive full service from their utility-affiliated provider. Rates for residential customers will be cut by at least 6 percent on January 1, 2002, when all customers will be able to choose to buy their energy from a competing provider. See the Texas Electric Choice web page (http://www.powertochoose.org) for customer information about choosing a retail electric provider.

11/01: Exercising its option to delay retail access in regions where fair competitive service cannot be implemented, the PUC accepted a settlement to delay implementation of retail access in Southeast Texas. Affected are customers of Entergy within the Southeast Regional Reliability Council. The PUC cited a lack of an RTO in the region and the absence of marketing by retail electric service providers as the primary reasons for the decision.

11/01: Exercising its option to delay retail access in regions where fair competitive service cannot be implemented, the PUC accepted a settlement to delay implementation of retail access in Southeast Texas. Affected are customers of Entergy within the Southeast Regional Reliability Council. The PUC cited a lack of an RTO in the region and the absence of marketing by retail electric service providers as the primary reasons for the decision.

10/01: The PUC delayed retail choice in the area covered by the Southwest Power Pool in Texas (Panhandle area). The delay will affect customers of Southwest Electric Power Company and a few customers of West Texas Utilities. Reasons cited include the lack of an RTO in that region, no retail electric suppliers, and wholesale electricity markets in the area are not yet competitive.

09/01: Utilities in Texas began the process of auctioning part of their generating capacity. According to SB 7, at least 60 days before competition begins, each generation company affiliated with a former monopoly utility must sell entitlements to at least 15 percent of its installed generation capacity. The action is designed to increase the pool of available power for new retail suppliers entering the market, prevent market power, and promote competition in electricity markets.

08/01: The official opening of the pilot program in Texas has been delayed twice, from the original data of June 1 to July 6, and now to at least July 31. The schedule for full implementation of retail open access is still set to begin January 2002.

07/01: The Texas Supreme Court upheld the March PUC settlement with Central Power and Light (a subsidiary of American Electric Power) to securitize approximately $764 million in regulatory assets. Securitization, or refinancing of debt, is the mechanism to recover stranded costs as provided by the Texas restructuring law, SB 7, passed in June 1999.

07/01: Three companies were chosen by a competitive bidding process to be the POLR for Texas customers whose retail electricity providers (REP) cancel service. POLR service is designed as a safety net to provide continuity of service when a customer's REP does not continue service. POLR service is relatively high-priced and should only be used as a temporary service until a customer can choose another REP.

05/01: The Texas retail pilot program has 12,723 residential participants in the TXU service territory, but can admit as many as 113,295 customers. However, more commercial and industrial customers signed up than are allowed under the 5 percent rule, and a lottery was conducted to determine participants.

03/01: A high level of interest in participating in the retail choice pilot program by nonresidential customers is requiring most of the investor-owned utilities to conduct lotteries to choose the allowed 5 percent of their customers who will be allowed to choose their electricity supplier. Beginning in June, 5 percent of each customer class in each of the investor-owned utilities will be allowed to choose their supplier of electricity. The residential participants are being selected on a first-come, first-serve basis.

03/01: The PUC is overseeing the pilot program set to begin retail competition by June 1, 2001. The pilot program will be open to customers in the State's IOU service territories. Enrollment began in February 2001, and if over 5 percent of customers choose to enroll, a lottery will be held to choose participants.

03/01: The PUC began its consumer education program to promote competition for electricity suppliers. Inserts are being enclosed in bills, and an information website (http://www.powertochoose.org) and telephone line are now operating.

12/00: The PUC issued a Request for Proposals (RFPs) to select electric service providers to be providers of last resort (POLR). The POLR will serve customers in areas open to competition on January 1, 2002, where the Retail Electric Provider (REP) of choice fails to continue service. According to the PUC's restructuring rules, POLRs must offer a firm, nondiscountable, seasonally differentiated rate to any of three consumer classes: residential, small nonresidential, and large nonresidential. The POLR service is not supposed to be competitive, innovative or anything other than basic standard service.

10/00: The PUC adopted rules for the provider of last resort for when competition begins in early 2002. The rules will allow for continuity of service if a service provider goes out of business or drops a consumer. The provider of last resort will be required to provide to consumers no longer served by their provider of choice with service at a fixed price. A competitive bidding process will designate the last resort providers for each consumer class. Bidding is expected to be completed by June 1, 2001.

07/00: Pilot programs involving 5 percent of each utility’s load are scheduled to begin June 1, 2001. Proposed rules have been issued by the PUC. Retail electric providers must register with the PUC, and affiliate companies may not operate in the incumbent utility’s territory. Customer class participation will be determined by the share of load each class represents in a utility territory, and apportioned accordingly. Full implementation of retail access is scheduled to begin January 1, 2002, in Texas.

04/00: Utilities filed restructuring plans with the PUC. The plans incorporate how the utilities will implement retail choice by 2002, a mandated rate reduction of 6 percent after January 1, 2002, and how the utilities will separate their business into generation, retail provider, and delivery divisions.

04/00: Southwestern Public Service Company (SPS) announced a rate reduction of 7 percent for most of its consumers, beginning in 2001. Also, they are planning to sell about 2/3 of their generating capacity in order to meet the mandated requirement of owning no more than 20 percent of capacity in their territory in order to participate in retail competition.

12/99: Texas-New Mexico Power Company’s (TNMP) pilot programs in Gatesville and Olney City began November 1, when customers began receiving power from Bryan Texas Utilities. Prices are between 7 and 10.5 percent lower than other TNMP customers. The pilot programs are required by the Texas restructuring legislation. All utilities must conduct pilots by June 2001. TNMP is ahead of schedule with the implementation of these two programs.

10/99: Central Power & Light (CPL) filed an application with the PUC to securitize or refinance their regulatory assets, as allowed in the recently passed restructuring legislation. If granted, CPL would securitize about $1.27 billion of its retail generation-related regulatory assets and about $47 million in other qualified costs.

10/99: Southwestern Public Service Company filed its plan for evaluation of market dominance with the PUC, as required by the legislation passed in June. To alleviate market dominance, SPS plans to transfer ownership or control of 595MW of generating capacity. Some entitlements to power will be auctioned, and some generation assets divested (by 2002).

09/99: Gatesville, TX, will begin one of the largest pilot programs in the Nation. The city banded together all its customers and sought bids from competitive suppliers. Bryan Texas Utilities will supply all Gatesville’s consumers with power, and Texas- New Mexico will continue to provide the distribution services. Individual customers may opt out of the program. The program is scheduled to begin 11/1/99, and expected to provide 8- to 10-percent savings.

06/99: Restructuring legislation, Senate Bill 7, was enacted to restructure the Texas electric industry allowing retail competition. The bill requires retail competition to begin by January 2002. Rates will be frozen for 3 years, and then a 6 percent reduction will be required for residential and small commercial consumers. This will remain the "price to beat" for five years or until utilities lose 40 percent of their consumers to competition. The bill will also require a reduction of NOx and SO2 emissions from "grandfathered" power plants over a 2-year period. All net, verifiable, nonmitigated stranded costs may be recovered. Securitization will be allowed as a recovery mechanism. Utilities must unbundle into 3 separate categories, using separate companies or affiliate companies, the generation, the distribution and transmission, and the retail electric provider. Utilities will be limited to owning and controlling not more than 15 percent of installed generation capacity in their region (ERCOT). Municipals and cooperatives are not affected by the law, unless they choose (after January 2002) to open their territories to competition. The law also requires an increase in renewable generation and 50 percent of new capacity to be natural gas-fired.

12/98: As part of Texas-New Mexico's transition to competition, the PUC approved a price reduction for their customers retroactive to January 1998, resulting in a credit on bills for customers. The price reduction is part of TNMP's plan to reduce residential rates by 9 percent and commercial rates by 3 percent over a 5-year transition period.

11/98: The House committee released a report on the tax impacts of deregulation indicating a major overhaul of the state's tax system would be necessary if restructuring legislation were to pass in 1999.

10/98: Texas-New Mexico Power Co. named 2 communities, Gatesville and Olney City, in which to initiate its pilot program, “Community Choice,” for retail access to generation suppliers of choice.

07/98: The PUC approved TNMP's proposal for retail competition. The plan includes provisions for a pilot program and a five-year transition to competition. This voluntary plan has a provision that it would be modified to conform to any restructuring legislation passed.

05/98: The PUC’s revisions to their plan for deregulation would allow securitization of stranded assets, estimated to be $4.5 billion if retail competition happens in 2001. Deferring full competition one more year would lessen stranded costs to $3.3 billion, and delaying competition until 2003 would set stranded costs at approximately $2.3 billion.

05/98: An administrative law judge recommended the PUC reject Texas-New Mexico's restructuring plan. The plan would provide residential customers an immediate 3-percent rate reduction and another 3 percent in January 2000 and January 2001, totaling 9 percent over 3 years. Also, the plan provided for full recovery of stranded costs through a customer transition charge (CTC). A final decision by the PUC is expected by July.

04/98: The PUC is finalizing its plan and recommendations for restructuring and expects to forward it to the legislature within days.

03/98: The PUC approved Texas Utilities restructuring plan.

03/98: HL&P's restructuring plan was approved The HL&P plan provides a 4- percent rate cut this year and another 2 percent next year.

12/97: The Senate Interim Committee on Electric Industry Restructuring met, and will continue meeting with stakeholders; next meeting set for February 1998. The committee expects to issue a report prior to when the 1999 legislative session reconvenes in January.

12/97: Houston Light and Power, Texas Utilities Electric Co., and Texas-New Mexico Power Co. announced agreements with the PUC on proposed competition plans, although final approval by the PUC is still needed. All three contain rate reduction measures. Texas-New Mexico's plan offers a guaranteed date, 2003, for full retail choice beginning with a phase-in of customers as early as January 1998, and a plan for stranded cost recovery.

10/97: Houston Light and Power presented its transition proposal for restructuring. Included is a 4-percent rate decrease over 2 years for residential customers.

08/97: A Senate committee was formed to review electric industry restructuring.

01/97: The PUC issued three reports as directed by the legislature. Volume I is on the scope of competition in the electric industry in Texas; Volume II is an investigation into retail competition; and Volume III focuses on recovery of stranded costs and competition.

08/96: The PUC authorized the ERCOT ISO, to be operational by July 1997.

1995: Senate Bill 373 enacted to restructure the Texas' wholesale electric industry, consistent with FERC requirements. The law requires utilities to provide unbundled transmission service on a non-discriminatory basis and establish an ISO.