ERCOT Switch Allows Pilot Customers to Get New Service

The flow of power from new Retail Electric Providers (REP) to Texas electric customers participating in the pilot program can begin with Tuesday's morning's transfer by the Electric Reliability Council of Texas (ERCOT) to a single control area.

ERCOT reports all market systems and processes are functioning properly to ensure a successful pilot program before the full launch of retail competition on Jan. 1, 2002. The single control area allows REPs to move electricity to serve their customers.

"We are pleased that we made this important step for the phased-in pilot program," said ERCOT chief operating officer Sam Jones. "ERCOT moved control of wholesale electric operations after midnight to begin switching eligible retail customers to new providers."

"I congratulate ERCOT, the new retail providers and the existing investor-owned utilities for their cooperation and hard work," said PUC Chairman Max Yzaguirre. "This is a historic moment for electric customers in Texas. Texans can now choose their electric company the same way they choose other goods and services in their everyday lives."

Over the next several weeks, customers presently enrolled in the pilot program will be switched to their new REP depending on their next full billing cycle after ERCOT processes their switch requests.

"This is an exciting and significant step toward the new world of electric competition in the state, said PUC Commissioner Becky Klein. "Texas electric choice is unique because new providers, incumbent utilities and ERCOT have worked hard together to ensure its ultimate success for the benefit of Texas consumers."

The Texas electric restructuring law establishes a pilot program that allows up to five percent of customers to switch providers. The pilot program provides an opportunity to test and fine-tune systems necessary for retail choice before the full opening of the retail electric market on Jan. 1, 2002. REPs have been marketing electricity at reduced prices to both residential and commercial customers. At the end of last week 90,553 Texas residential customers were enrolled in the pilot.

PUC Web Site: http://www.puc.state.tx.us