| Deregulation
FAQ
This contains some general questions regarding
The new Texas Deregulated Electric Market. If your question
is not answered here, simply contact
Best Price Electricity here.
Q: What has stayed the same in Texas Energy
service?
A: Your current Transmission and Distribution Utility,
or "local wires company," continues to deliver
energy to your home. Your local wires company still
responds to service interruptions and continues to maintain
the poles and wires. You will continue to receive the
same reliable service you are used to with your local
wires company, regardless of which Retail Energy Provider
you receive service from.
Q: What has changed in Energy service?
A: You can now choose to buy your Texas Energy from
a different electric provider than the original provider
for your area. These companies are called Retail Energy
Providers. Additionally, your bill now looks different
than bills you have received in the past, but each Retail
Energy Provider provides the same standard information.
Q: Do all Texans have the power to choose
their Energy provider?
A: No. City-owned utilities and member-owned electric
cooperatives have the option of giving their customers
a choice of providers, or keeping things the way they
are today. To see if competition is active in your area,
Contact Best Price Electricity today with your zip code.
Q: What are the benefits of Energy Choice?
A: Texas’ energy rates are average, compared to
the rest of the country, but our usage is among the
highest in the nation due to demand for air conditioning
during the long, hot summer season. Competition in other
industries has often brought lower prices and innovative,
new products and services. Having more control over
your buying decision should make it easier to determine
what matters most to you, whether it’s prices,
renewable energy, customer service, or simply a name
you know.
Energy competition also should help the
environment because Retail Energy Providers must offer
some energy from renewable energy sources. Renewable
energy – such as wind, solar, hydroelectric and
biomass (gas released from landfills) – produce
less air pollution than sources that rely on burning
coal or natural gas.
The Texas Energy market is one of the
most attractive in the country for new investment. Forty-seven
new power plants have been built or are being built
in Texas since 1995 (that’s almost one-fourth
of all power plants being built or planned in the nation).
The properties represent a $10 billion investment in
Texas. These plants provide jobs and sales and tax revenue
into local Texas communities.
Q: How does Energy Choice affect Energy
rates?
A: The base rates for residential and small commercial
customers of investor-owned utilities in Texas were
frozen from September 1, 1999, to December 31, 2002.
On January 1, 2002, rates for most of these customers
were lowered, creating the "Price to Beat."
The Affiliate Retail Electric Provider cannot charge
above this rate until it loses 40 percent of its customers
or five years pass, whichever comes first.
Q: If electric rates are frozen, why does
my Energy bill rise?
A: Texas law allows the Affiliate Retail Energy Provider
(the Energy provider that was part of the original electric
company that generated and sold electricity in your
area, that now only sells electricity) to ask the PUC
to adjust the "fuel factor" portion of its
rate when there are significant changes in the market
price of natural gas and purchased energy. These requests,
which may be made twice a year, are subject to PUC review
and approval. The cost of natural gas has increased
significantly over the last year, and fuel factors have
been increased to reflect the higher cost of natural
gas. The Affiliate Retail Electric Provider is prohibited
from making a profit on fuel costs.
Competitive (or new to the area) Retail
Energy Providers set their own electric service rates.
Q: With competition, will the reliability
of my electric service change?
A: No. No matter which Retail Energy Provider you choose,
your electricity will continue to be delivered safely
and reliably by the local wires company, a company still
regulated by the PUC.
Q: How does the new competition law protect
the environment?
A: The law requires "grandfathered" power
plants (those that predate the 1971 Texas Clean Air
Act) to reduce nitrogen-oxide emissions by at least
50 percent and sulfur dioxide by 25 percent before May
1, 2003.
Encourages upgrade or retirement of older
power plants to meet emissions standards by allowing
utilities to recoup the costs of retrofitting or retiring
certain older power plants.
Provides incentives for energy efficiency
programs that will result in less demand for the production
of electricity.
Requires retail electric providers to
buy an additional combined 2,000 megawatts of Texas
renewable electric generation capacity statewide by
January 2009, from sources that include wind, solar,
hydroelectric, biomass or geothermal.
Q: Do I have to switch from my current
electric utility?
A: No. If you decide not to choose a new Retail Electric
Provider, your service will be provided by the Affiliate
Retail Energy Provider. The Affiliate Retail Electric
Provider is the electric provider that was part of the
original electric company that generated and sold electricity
in your area, that now only sells electricity and provides
customer service.
Any
Further Questions, Contact us today
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