Deregulation
History of Deregulation in Texas
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| In 1999, the Texas legislature passed Senate Bill 7, which creates competition in the retail sale of electricity in Texas. Customers of investor-owned utilities like TXU Electric and Reliant Energy will now have the power to choose. As of January 1, 2002, you can choose who delivers your electricity – just like your phone and cable. |
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| Your electricity is still delivered by the same regulated transmission and distribution systems that serve you today. The only things that change are your rates – and the level of service you receive. Since electric providers are competing for your business, your rates will most likely be lower and the products and services better. |
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| The deregulation bill also carries with it a clause that takes the average bundled residential electric rates, calculated as of January 1,1999, and reduces them by six percent. This is known as the "price to beat." |
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| Senate Bill 7 also provides other consumer safeguards, such as protecting against service disconnection, providing easy-to-read bills, and offering a 10 percent discount for low-income Texans. Plus, it requires power plants to reduce harmful emissions while tripling their capacity to generate power through renewable resources like sun and wind. |
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| Choice, better prices, cleaner air – deregulation means more power to you. |