October 2003 Report Card on Retail Competition
Customer Choice
Customers have meaningful choices with multiple REPs in all areas. Since the last report, an additional
REP is offering service in each of the AEP areas. Green Mountain has increased its selection of renewable
energy products to three in all of the areas in which it offers service. In addition, Reliant continues to offer
a renewable product in the Oncor and AEP areas.
Options for Residential Customers
REPs
Products
Renewable
Options
Oncor (DFW)
CenterPoint
(Houston)
11
14
4
11
13
3
TNMP
AEP Central
(Corpus Christi)
6
9
4
10
13
4
AEP North (Abilene)
6
6
0
Area
Price to Beat Rates for TXU and Reliant Territories
Rising natural gas prices have resulted in slowly increasing electricity prices in the Texas marketplace this
year. The Price to Beat offered by Reliant to residential customers with 1000 KWH of demand has risen
approximately 6.5% since December 2001, due to rising natural gas prices, while the TXU Price to Beat for
those customers has risen about 7.5% in the same time span. By comparison, the average cost for that
power in areas of Texas not in competition has risen approximately 12.3% in the same time period.
1 2 .0 0
1 1 .0 0
1 0 .0 0
Re lia n t
TXU
1 0 .4
9 .7
8 .68 .3
9 .0 0
9 .1
8 .7
9 .4
8 .7
Au gu st
2002
D ecem b er
2002
1 1 .0 5 1 1 .0 5 1 1 .0 8
1 0 .1
1 0 .0 5 1 0 .4 3
9 .7
9 .7
8 .0 0
7 .0 0
6 .0 0
5 .0 0
4 .0 0
3 .0 0
2 .0 0
1 .0 0
0 .0 0
D ecem ber
2001
J a n u a ry
2002
M a rc h 2 0 0 3
J u ly
2003
Au gu st
2003
O c to b e r
2003
Market Activity: Total Switch Requests as of October 17, 2003
Over a million customers have switched suppliers. This includes switches during the pilot program (July
31, 2001 – December 31, 2001). This does not measure the number of customers currently being served by
a competitive provider, because it includes customers who may have switched back to the Affiliate REP or
who may have switched more than once since competition began.
TDSP
Completed
In Review
Scheduled
Total
Oncor
532,513
643
21,071
554,227
CenterPoint
350,400
203
13,856
364,459
AEP Central
142,820
556
11,405
154,781
AEP North
33,230
119
2,920
36,269
TNMP
22,199
103
1,277
23,579
Competitive Activity
Competitive offers are available which provide savings of between $16 and $36 per month over Price to
Beat for residential customers with usage of 1000 KWH per month. Customers with usage from 500 KWH
per month to 2000 KWH per month can save at least 1 cent per KWH in every PTB region. (Based on
average annual rate comparison.)
Residential Offers by TDSP Territory
12.00
11.34
11.05
10.93
10.65
10.06
10.00
Price in Cents per KWH
8.65
8.65
8.43
8.40
8.59
8.00
Price to Beat
Lowest Offer
6.00
4.00
2.00
AEP Central
AEP North
Centerpoint
ONCOR
TDSP Territory
Based on 1000 KWH usage.
TNMP
Market Share – Residential Class
Residential market share for competitive REPs has been steadily increasing in all markets for the last year.
In most areas, approximately 10% of residential customers have switched as of June, 2003.
Residen tial Custom ers w ith
Co mpetitive REP
11%
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Ja
M
n
M
ar
Ju
ay
l
Se
p
N
ov
Ja
n
Onc or
Centerpoint
CPL
WTU
TNMP
Total
M
M
ar
ay
Resid en tial M eg aw att-h o u rs sw itch ed
to Co m p etitive REP
14%
12%
10%
8%
6%
4%
2%
Onc or
Centerpoint
CP L
W TU
ay
M
ar
M
n
Ja
ov
N
ep
S
l
Ju
ay
M
ar
M
Ja
n
0%
TNM P
Total
Market Share – Secondary Voltage Customers
Most secondary voltage customers fall in the small non-residential class. Across TDSP areas, between
12% and 22% of secondary voltage customers have switched, accounting for 36% - 50% of secondary
voltage load. As of October 21, 2003, Oncor and TNMP had filed evidence of reaching the 40% threshold
of Small Non-Residential demand switching. AEP North and AEP Central had filed evidence of reaching
the 35% threshold of Small Non-Residential Demand switching.
S e c o n d a r y V o lt a g e C u s t o m e r s w it h
C o m p e t it iv e R E P
25%
20%
15%
10%
5%
O ncor
C e n t e rp o i n t
CPL
ay
M
M
ar
n
Ja
ov
N
ep
S
l
Ju
M
M
Ja
n
ar
ay
0%
W TU
TN M P
To ta l
N o n -AR E P S h a re o f S e c o n d a ry V o lta g e
M e g a w a tt-h o u rs
60%
50%
40%
30%
20%
10%
O nc or
C enterpoint
CP L
W TU
M
ay
ar
M
n
Ja
ov
N
ep
S
l
Ju
ay
M
ar
M
Ja
n
0%
TN M P
Total
Market Share – Primary Voltage Customers
As of June 2003, approximately 32% of primary and transmission voltage customers had switched to
competitive REPs, accounting for approximately 59% of total demand. As of the end of December 2002,
after only 1 year of retail electric competition, approximately 91.5% of non Price-to-Beat customers in the
Large non-Residential class had signed competitive rate contracts with either a competitive REP or the
affiliated REP.
% of Primary and Transmission Voltage Customers Served by Competitive REP
70%
60%
50%
40%
30%
20%
10%
0%
Ju
n
ay
pr
ar
M
A
M
eb
n
M W h S o ld
F
ec
ov
ct
Ja
D
N
ep
l
n
ug
O
S
A
Ju
Ju
ay
pr
ar
M
A
n
eb
M
F
Ja
# o f C u s to m e r s
System Benefit Fund
The low-income discount program had 758,526 customers using 1.1 billion KWH in energy in September
2003, up from 597,523 and 900 million KWH in September 2002. Customers are eligible for a discount of
10% off their bill if they have income less than 125% of the federal poverty level, or receive assistance
from any of several state low-income assistance programs.
T&D Service Area
Oncor
CenterPoint
AEP Central
AEP North
TNMP
Sharyland
SESCO
# of Customers
Receiving Discount
340,027
248,002
128,444
21,150
20,824
58
21
$ of Discount
Disbursed in
September 2003
5,105,178
4,665,984
2,812,630
408,879
346,459
1,483
539
September Total
758,526
13,341,152
Total Discounts in
Jan. – Sept. 2003
127,305,734