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NewsRelease
May 07 2002
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Texas Electric Competition Ranked #1 in U.S.
Healthy Electricity Surplus Available for Peak Summer Demand
A research group ranking the progress of electric customer choice rates Texas number one in the nation. This top ranking comes at the same time when the state enjoys an abundant supply of electricity to meet peak demand this summer.
"Texas represents a large, coherent retail market," said Ken Malloy, director of the Center for the Advancement of Energy Markets. "I am confident that Texas customers will enjoy the benefits of electric competition much sooner than customers in other states." The Center''s Retail Energy Deregulation (RED) Index relies on actual implementation, and does not give credit for things that may happen in the future.
The RED Index gives Texas high marks for protecting customers by requiring utility companies to separate their competitive and regulated businesses, for adopting business practices that are uniform across the state, and for establishing a bilateral wholesale market for electric power. A bilateral market allows for a more competitive process.
Since open transmission access and wholesale competition began in Texas in 1995, 48 new power plants have been completed. Another nine generation projects are scheduled for completion by the end of this year, contributing to the state''s abundant supply. Today, statewide capacity is approximately 85,000 megawatts (MW).
The summer is when electricity demand peaks in Texas. The Electric Reliability Council of Texas (ERCOT), which manages the electric grid for approximately 85 percent of Texas, predicts a healthy 23-percent reserve margin this year and a similar cushion for 2003. The PUC has started a rulemaking process to ensure sufficient future reserves.
Actual electricity usage depends not only on the weather, but also on population and the economy. To help ensure adequate electricity supplies, the PUC typically expects a 3.5 percent annual growth in electricity demand. However, in 2001, peak electricity demand actually fell about five percent from 2000.
While the PUC expects a smooth-running market this summer, it continues working with ERCOT and other market participants to improve customer billing and service. Customers can learn more about electric choice at www.powertochoose.org or by calling 1-866-PWR-4-TEX toll-free.
| Contact | |
|---|---|
| Robbie Searcy | 512-225-7213 |
| media@ercot.com | |