Power Providers Want Texas to Start Deregulation on Time

- Texas--Nine retail electricity providers told state utility regulators Friday they are opposed to delaying electricity deregulation, which is set to start Jan. 1.

The group, which includes those marketing to both residential and commercial customers, responded to a filing made to the Public Utility Commission about two weeks ago by five consumer groups.

The groups called for the PUC to delay the market's opening, saying the state wasn't ready for competition for a variety of reasons.

Among them, needed computer systems haven't been fully tested, and switching customers in a pilot program to new power providers has moved too slowly. The group also cited flaws in a service created to act as a safety net for certain consumers.

Delays and computer glitches have plagued the pilot program, which let a limited number of consumers across the state choose new power providers before the full market opens.

But the electricity companies, which include Green Mountain Energy Co., Reliant Energy's Reliant Resources, New Power Co. and TXU Energy Services, said in a filing that market shortcomings cited by the consumer groups either don't exist or can be fixed and don't call for "the extraordinary action of delaying competition."

"A delay will only serve to frustrate and confuse customers that are ready to begin," the group said.

It could also hurt the Texas market for years and would financially damage electricity providers who plan to do business in the state, the group wrote, noting that providers have already spent significant dollars on advertising, staff and power supply contracts.

The required computer systems are "largely operational," and the pilot project is succeeding, the group wrote.

As of Oct. 17, about 15,500 consumers statewide were receiving power from new providers, and more than 49,700 were scheduled to get service from new providers as soon as their regularly scheduled meter readings were done.

Under the original pilot plans, officials had hoped consumers could try out new providers for at least several months before the market opened. It was also hoped power providers could test out billing and other systems for at least several months.

Green Mountain, among the companies that signed up Houston consumers, said it has been happy with the pilot so far.

Gillan Taddune, vice president and general manager for the company's Texas region, said she has "every confidence that all systems are ready for a full market launch in January as planned."