Texas House Bill HB870

Texas 2009 - 81st Regular

• Out of House Committee: 4/6/09

Caption

Relating to transition to competition in the Southwestern Electric Power Company service area.

Impact

The impact of HB 870 on state laws involves amendments to the Utilities Code, particularly Chapter 39, which outlines the regulations governing utility companies. As new protocols and regulations emerge from this bill, investor-owned electric utilities will have to comply with restructured guidelines that emphasize customer choice and fair competition in energy service provision. This shift aims to enhance market efficiency and consumer empowerment, allowing customers the option to select their energy suppliers, ultimately aiming to lower costs and improve service quality.

Summary

House Bill 870 focuses on transitioning to a competitive retail electric market in the service area of the Southwestern Electric Power Company, which operates outside of the Electric Reliability Council of Texas (ERCOT). The bill establishes a framework for regulatory changes necessary for implementing retail customer choice in electricity purchasing. The proposed legislation recognizes existing limitations in fair competition and reliable service before full retail competition can commence. The bill sets a series of steps that must be followed sequentially to reach the point where retail competition is viable in this area.

Contention

While HB 870 aims to facilitate a competitive electricity market, there are notable points of contention. Supporters of the bill argue that transitioning to a competitive market will lead to better services and prices for consumers. Conversely, critics express concerns about the existing limitations regarding service reliability and fairness in competition. They argue that rushing into deregulation may exacerbate existing disparities and lead to instability in service provision. Ongoing discussions will likely examine the proper balance between competition and the need for regulatory oversight to protect consumers during this transition.