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.
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