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Some Texans Dumped By Electricity Providers

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Jun 5, 2008 12:11 pm US/Central

Some Texans Dumped By Electricity Providers

AUSTIN (AP) ― More than 30,000 Texas electricity customers have been forced into a state backup program in recent weeks after their retail providers defaulted on payments to the operator of the state's largest power grid.

The latest provider was Denton-based Etricity. The Electric Reliability Council of Texas, which operates the grid for most of the state, said it switched about 12,220 Etricity residential customers into the provider-of-last-resort program.

While those customers may have to pay higher prices until they sign with a new provider, it allows them to avoid having their electricity turned off as Texas heats up for the summer.

The Public Utility Commission urges customers to shop for lower rates at www.powertochoose.org.

Two other companies, Pre-Buy Electric LLC and National Power Co., also stopped serving about 24,000 customers in the last couple of weeks.

Texas deregulated its electricity market in 1999 and allowed customers to start choosing their providers in 2002. Critics contend deregulation hasn't reduced prices as promised, and lawmakers disappointed with the results failed in an effort to revamp the system during the last legislative session.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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