Entergy Texas and Deregulation
Why has Entergy Texas, Inc. not become part of the deregulated electric
market in Texas?
There are two electric markets in Texas – regulated and deregulated. The Texas
Legislature passed landmark legislation in 1999 known as Senate Bill 7 that
deregulated much of the Texas electric industry. Electric deregulation became
effective for the majority of Texans on Jan. 1, 2002. Deregulation for Entergy
customers in Southeast Texas has been delayed.
Most major utility companies in Texas are part of the Electric Reliability
Council of Texas. Other utility companies, including Entergy Texas, Inc., El
Paso Electric, Southwestern Public Service and Southwestern Electric Power
Company operate in geographic areas on the perimeter of Texas and get much of
their power from other states. As a result, it has been more challenging for
these non-ERCOT utility companies to move to deregulation until certain
regulatory hurdles have been overcome.
At the conclusion of the 2009 session, the Texas Legislature approved a bill
that delays any further consideration of retail customer choice in Entergy
Texas, Inc.’s service area. Senate Bill 1492 delays competition in southeast
Texas for an indefinite period. It allows Entergy Texas to remain in an
electric grid known as the Southeastern Reliability Council, but does not
preclude the company from joining another regional transmission organization
known as the Southwest Power Pool.
Entergy believes the legislation signed by Gov. Perry June 19 will provide
certainty to the company, its customers, and other stakeholders. While Entergy
Texas will not be moving to deregulation in the foreseeable future, we will
continue to deliver superior customer service to our nearly 400,000 customers
and provide reliable, clean and affordable power.
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