Oct 3, 2006 7:05 pm US/Central
TX Electric Co.'s Prepare For Full Deregulation
by Eileen Gonzales
DALLAS (CBS 11 News) ―
Government regulation of electrical prices will soon be a thing of the past.
On January 1st, Texas will become a fully competitive open market for electric providers.
"It looks like deregulation is going to be a long term good deal for Texas consumers but the jury is still out. We don't know what's going to happen after January 1st," says Southern Methodist University economics professor, Mike Davis says. "We don't know what's going to happen for the next year or two."
Without government regulation, electrical providers will have the freedom to charge whatever price the market will bear. However prices are expected to be tempered by competition.
TXU is making the first move by offering price cuts, discounts, and customer appreciation incentives in anticipation of the open market.
Lisa Singleton, the director of corporation communications for TXU says, "We've got to find ways to make consumers want to purchase our product."
Terry Hadley, with the Public Utility Commission of Texas, says this is probably the first volley in an upcoming competitive war between electrical providers.
"Over the next few weeks, other providers will make their offers. Consumers may want to see how these offers develop before making a choice to lock in with a provider," he said.
Experts suggest consumers do their homework. "Go online, read the ads, talk to your friends and neighbors and find out what the best deals are going to be because there are going to be deals out there," Davis said.
(CBS 11 News)
Stumble It!
