February 2003 Report Card on Competition
Residential Market Competitive Offers as of January 2003
Customers have meaningful choices with multiple REPs in all areas. Spark Energy entered all five
service areas in January 2003. In addition, Reliant entered the CPL service area and Utility Choice
entered the WTU service area in January 2003.
Most REPs are still offering one product; however Green Mountain Energy is currently offering two
products in all areas except WTU. A complete listing of offers by service area is attached and can be
found on the PUC’s website.
TDSP
# of REPs
(incl. AREP)
# of all products
(incl. PTB)
# of Renewable
Products
Oncor
CenterPoint
AEP Central
(CPL)
11
11
9
12
12
10
2
2
2
TNMP
AEP North (WTU)
6
5
7
5
2
0
2002 Residential Savings Due to Price-to-beat Reduction
ƒ
Residential customers paid approximately $902 million less under the price-to-beat rates in
2002 than they did in 2001.
o $225 million from statutorily mandated 6% reduction.
o $677 million from reduced fuel costs and expiration of fuel surcharges.
Estimated Price-to-beat Savings—2002
TDSP
Oncor
CenterPoint
AEP Central (CPL)
TNMP
AEP North (WTU)
Estimated Savings
through December 2002
$390 million
$386 million
$68 million
$44 million
$14 million
TOTAL
$902 million
1
Additional Annualized Savings Available
As of December 2002, additional savings off the price to beat of up to 14% were available to
residential customers. A household using an average of 1,000 kWh per month can save as much as
$166 a year by switching to the lowest competitive offer in some areas. Customers who signed up on
long-term contracts earlier in the year at rate levels that are no longer available may see savings in
excess of this amount. The following chart summarizes the additional annual savings that would be
realized by residential customers in Texas if they switched to the lowest current offer available in their
area.
% switched
5%
10%
15%
20%
25%
Additional Annual
Savings Available
$32 million
$64 million
$95 million
$127 million
$159 million
100%
$636 million
Comparison of January 2003 bills for Household using 1000 kWh
Oncor Service Area
$100.00
$78.86
$80.00
$76.72
80.77
$76.73
$67.07
$60.00
$40.00
J a nua ry 2 0 0 1
R e gula t e d R a t e
J a nua ry 2 0 0 2
P ric e t o B e a t
R ate
J a nua ry 2 0 0 3
P ric e t o B e a t
J a nua ry 2 0 0 3
Lo we s t
C o m pe t it iv e
Offer
J a nua ry 2 0 0 3
P T B R a t e wit h
Lo w- Inc o m e
D is c o unt
2
$100.00
$98.26
CenterPoint Service Area
88.15
$80.77
$80.00
$73.15
$80.00
$60.00
$40.00
J a nua ry 2 0 0 1
R e gula t e d R a t e
J a nua ry 2 0 0 2
P ric e t o B e a t
R ate
J a nua ry 2 0 0 3
P ric e t o B e a t
J a nua ry 2 0 0 3
Lo we s t
C o m pe t it iv e
Offer
J a nua ry 2 0 0 3
P T B R a t e wit h
Lo w- Inc o m e
D is c o unt
TNMP Service Area
$100.00
$87.73
$84.57
89.52
$84.00
$73.42
$80.00
$60.00
$40.00
J a nua ry 2 0 0 1
R e gula t e d R a t e
J a nua ry 2 0 0 2
P ric e t o B e a t
R ate
J a nua ry 2 0 0 3
P ric e t o B e a t
J a nua ry 2 0 0 3
Lo we s t
C o m pe t it iv e
Offer
J a nua ry 2 0 0 3
P T B R a t e wit h
Lo w- Inc o m e
D is c o unt
3
$100.00
AEP Central (CPL)
Service Area
$91.86
85.36
$81.09
$79.15
$80.00
$70.86
$60.00
$40.00
J a nua ry 2 0 0 1
R e gula t e d R a t e
J a nua ry 2 0 0 2
P ric e t o B e a t
R ate
J a nua ry 2 0 0 3
P ric e t o B e a t
J a nua ry 2 0 0 3
Lo we s t
C o m pe t it iv e
Offer
J a nua ry 2 0 0 3
P T B R a t e wit h
Lo w- Inc o m e
D is c o unt
AEP North (WTU)
Service Area
$100.00
$84.79
85.44
$86.15
$78.46
$80.00
$70.84
$60.00
$40.00
J a nua ry 2 0 0 1
R e gula t e d R a t e
J a nua ry 2 0 0 2
P ric e t o B e a t
R ate
J a nua ry 2 0 0 3
P ric e t o B e a t
J a nua ry 2 0 0 3
Lo we s t
C o m pe t it iv e
Offer
J a nua ry 2 0 0 3
P T B R a t e wit h
Lo w- Inc o m e
D is c o unt
4
Market Activity
Total Switch Requests as of February 7, 2003
Total Switch Requests submitted to ERCOT as of February 7, 2003. This includes switches during the
pilot program (July 31, 2001 through December 31, 2001). This does not measure the number of
customers who have switched to a competitive provider because it includes customers who may be
switched back to the Affiliate REP or who may have switched more than once since competition
began.
TDSP
Completed
In Review
Scheduled
Total
Oncor
310,599
832
26,192
337,623
CenterPoint
239,277
2,874
19,106
261,257
AEP Central
(CPL)
51,180
64
9,065
60,309
TNMP
8,866
22
912
9,800
AEP North
(WTU)
13,086
50
1,688
14,824
SESCO
0
1
1
2
TOTAL
623,008
3,843
56,964
683,815
Change in Switching Activity Since January 10, 2003
Activity from January 10, 2003 to February 7, 2003. Overall, the rate of switching is the same since the
September report card. The rate of switching increased in the service areas of AEP Central (CPL) and
AEP North (WTU); stayed the same in the areas of CenterPoint and SESCO; and decreased in the
areas of Oncor and TNMP.
Oncor
# of Switch Requests
since
January 10, 2003
20,908
CenterPoint
25,875
10%
AEP Central
(CPL)
11,898
20%
TNMP
739
8%
AEP North
(WTU)
1,949
13%
SESCO
0
0%
TOTAL
61,369
9%
TDSP
% Increase
6%
5
Market Share
The following chart shows the total market share in each TDSP service area. As of December 31,
2002, 6 percent of the customers in all competitive areas have been switched to non-Affiliated REPs in
their respective affiliated TDSP service area. This information was compiled using data requested from
TDSPs in project 25645.
Total Market Share by Number of Customers
100%
7%
10%
6%
7%
6%
90%
80%
Non-Affiliate
70%
60%
50%
93%
90%
94%
93%
94%
Affiliate
40%
30%
20%
10%
0%
Oncor
CenterPoint
CPL
WTU
TNMP
As of December 31, 2002, 31 percent of Megawatt-hours sold in all competitive areas has been
switched to non-Affiliated REPs in their respective affiliated TDSP service area.
Total Market Share by Megawatt-Hours Sold
100%
90%
25%
80%
36%
34%
39%
31%
Non-Affiliate
70%
60%
Affiliate
50%
40%
75%
30%
64%
66%
61%
69%
20%
10%
0%
Oncor
CenterPoint
CPL
WTU
TNMP
6
Market Share in each Customer Class
The data in the following charts are compiled from TDSP reports in project no. 25645.
% of Residential Customers Served by Competitive REP
2002 Trendline
12%
10%
8%
6%
4%
2%
0%
WTU
TNMP
2
-0
ec
D
2
-0
ov
N
2
-0
ct
O
02
pSe
02
gAu
CPL
2
l-0
Centerpoint
Ju
02
nJu
2
-0
ay
M
n-
2
r-0
Ap
2
-0
ar
M
02
bFe
02
Ja
Oncor
Total
% of Residential Megawatt-Hours Served by Competitive REP
2002 Trendline
12%
10%
8%
6%
4%
2%
0%
2
-0
ec
TNMP
D
WTU
2
-0
ov
2
-0
CPL
N
ay
Centerpoint
2
-0
ct
O
02
pSe
02
gAu
2
l- 0
Ju
02
nJu
M
2
r-0
Ap
2
-0
ar
M
02
bFe
02
nJa
Oncor
Total
7
% of Secondary Voltage Customers Served by Competitive REP
2002 Trendline
16%
14%
12%
10%
8%
6%
4%
2%
0%
WTU
TNMP
2
-0
ec
D
2
-0
ov
N
2
-0
ct
O
02
pSe
02
gAu
CPL
2
l-0
Centerpoint
Ju
02
nJu
2
-0
ay
M
n-
2
r-0
Ap
2
-0
ar
M
02
bFe
02
Ja
Oncor
Total
% of Secondary Voltage MWh sold by Competitive REP
2002 Trendline
60%
50%
40%
30%
20%
10%
0%
2
-0
ec
TNMP
D
WTU
2
-0
ov
2
-0
CPL
N
ay
Centerpoint
2
-0
ct
O
02
pSe
02
gAu
2
l- 0
Ju
02
nJu
M
2
r-0
Ap
2
-0
ar
M
02
bFe
02
nJa
Oncor
Total
8
% of Primary and Transmission Voltage Customers Served by Competitive REP-2002 Trendline
70%
60%
50%
40%
30%
20%
10%
0%
2
-0
ec
D
2
-0
2
-0
ov
N
ct
O
02
pSe
02
gAu
2
l-0
Ju
02
nJu
2
-0
ay
M
2
r-0
Ap
2
2
-0
ar
M
0
bFe
02
nJa
# of Customers
Megawatt-hours sold
The following chart shows the percentage of non-Price-to-Beat customers that have competitive
contracts. These commercial customers do not have a price-to-beat and may negotiate a contract with
the Affiliate REP or any other competitive REP. As of December 31, 2002, 91.54% of these customers
have signed a competitive contract.
% of Non-Price-to-Beat Customers with Competitive Contract
2002 Trendline
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2
-0
2
-0
ec
D
2
-0
ov
N
ay
2
-0
ct
O
02
pSe
02
gAu
2
l- 0
Ju
02
nJu
M
2
r-0
Ap
2
-0
ar
M
02
bFe
02
nJa
SBF and Low Income Discounts through December 2002
9
This has been updated to reflect discounts as disbursed in December 2002. In addition, staff filed an
updated report for 2002 on the System Benefit Fund and LITE-UP Texas program in Project No.
24116.
T&D Service
Area
# of Customers receiving
discount
Oncor
CenterPoint
CPL
TNMP
WTU
Sharyland
SESCO
316,429
195,193
126,268
17,649
20,129
1
1
$ of Discounts
Disbursed in
December 2002
$4.45 million
$2.50 million
$1.50 million
$216,000
$236,000
$10.00
$14.00
December Total
672,670
$8.90 million
Total Discounts
in 2002
$85.87 million
10