Entergy Texas and Deregulation

There are two electric markets in Texas – regulated and competitive – and Entergy Texas is stranded between the two. 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 January 1, 2002. Despite the fact that the company has filed numerous proposals with the Public Utility Commission of Texas in recent years, 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, 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, these non-ERCOT utility companies have not been allowed to move to competition until certain regulatory hurdles have been overcome.

At the end of 2006, Entergy recommended to the commission that ERCOT was the best choice for a Qualified Power Region if the company is to join the deregulated marketplace. The company believes that essential structures are already in place in ERCOT and not in the Southwest Power Pool, the other alternative. However, in October 2007, the commission ordered the company to reexamine the SPP before a final decision is reached.

Whether Entergy Texas remains regulated or eventually moves to deregulation remains uncertain. In the meantime, what’s not uncertain is that Entergy Texas will continue to deliver superior customer service, reliable and affordable power now and in the future.