Electric Deregulation

How it affects you

 

What is electric deregulation?

Texas has moved into an era where some electric consumers can choose to purchase their electricity from a utility other than the one presently providing it. Power would continue to be delivered through the existing wires. All consumers living in profit-making Investor Owned Utility (IOU) territories had this option beginning in January 2002. Consumers living in a non-profit Municipally-Owned Utility (MOU) or Electric Cooperative (COOP) territory will ultimately decide as to whether their member-owned utility will participate in this program or continue to operate as is. Texas Legislators recognized that non-profit MOU's and COOP's member\owners should be the ones to make this decision. If these member-owned utilities choose to opt in, they must stay in. There will be no going back to the current system.

Could Texas experience the same deregulation problems that California is experiencing?

Several years of uncertainty before the California market was deregulated caused the construction of some much needed generation plants to be delayed. The electrical shortages and price spikes that are devastating California today are directly related to the California system of deregulation. Future natural gas fired electrical generation plants were expected to meet Texas' growing demand for electricity. Due to the high cost of natural gas, some of these plants may not be built. Financing of other plants will now be at a higher interest rate due to the increased risk of not knowing what customer base will utilize the generated power. The price of emergency power in Texas has already experienced huge price spikes during the past couple of years. Will the increased cost of financing, marketing, advertising and administration allow for cheaper pricing?

Would electric deregulation benefit GEUS customers?

It is GEUS' opinion that deregulation might save industrial customers money while costing smaller customers more money. GEUS currently sets its rates based on the cost it takes to provide the individual customer with service. This is a fair cost of service rate system. The deregulated system will be a market driven system that will allow pricing at "whatever the market will bear". If you "follow the money" you will see it was the large industries that pushed for the markets to be opened. Consumer advocacy groups were very hesitant to support the deregulation of the Texas electric market. GEUS currently has plans to take a "wait and see" approach to opting in. GEUS will opt in when it benefits residential, commercial and industrial customers.

How does GEUS Compare?

GEUS has one of the lowest rates in Northeast Texas and, for that matter, in the whole state. You can compare our rates top what our neighbors are paying.

For more in depth information concerning deregulation, please call Jimmy Dickey at (903) 457-2823 or email

Important dates for Texas electric deregulation:

May 1999: The 76th Texas Legislature passed the Deregulation Law, which restructures the Texas electric industry.

June 1, 2001: Start date for a pilot program allowing competition for electric service in target markets in Texas. The pilot program will not affect Greenville.

January 1, 2002: Deregulation becomes mandatory for investor-owned utilities (IOUs) in Texas. At any point on or after this date, electric cooperatives (COOPs) and municipally-owned utilities (MOUs) may choose to enter the free market competition. That decision will be binding; once a utility has opted for competition it can not return to the present system.

Here's what one GEUS consumer/owner thought of deregulation. The late "Big Bill" Johnson, known locally as "The Singing Drywall Man" wrote the following song.

Don't Mess With Texas Electricity

There's people in Austin
I wish would move to Boston
They're trying to sell snake oil
To you and me
People in the Lone Star State
Don't want to deregulate
Don't mess with Texas Electricity

I'm not very smart
I admit I'm dumb
But there's a saying in Texas
Where I come from
Fool me once, shame on you
Fool me twice, shame on me
Don't mess with Texas Electricity

I read it in the papers
And I hear it on the news
California's got
The deregulation blues
We remember what happened
To our savings and loans
Thanks to deregulation
You can still hear the groans

Written and sung by Bill Johnson -The Singing Drywall Man 1926-2006
Published by Sabine River Music BMI