Electricity	
  101:	
  The	
  Electric	
  Industry	
  in	
  Texas	
  
	
  
July	
  2015	
  
Legisla;ve	
  adver;sing	
  ...
2	
  
AECT	
  Principles	
  
•	
  AECT	
  is	
  an	
  advocacy	
  group	
  composed	
  of	
  member	
  companies	
  commiT...
3	
  
AECT	
  Companies	
  
Within	
  ERCOT	
  
Transmission	
  and	
  Distribu;on	
  U;li;es	
  
Retail	
  Electric	
  Pr...
4	
  
AECT	
  Companies	
  
Outside	
  of	
  ERCOT	
  
Western	
  Electricity	
  Coordina;ng	
  
Council	
  (WECC)	
  
Sou...
5	
  
	
  Slide	
  6: 	
  Electric	
  Market	
  Structures	
  in	
  Texas	
  
	
  
	
  Slide	
  11: 	
  Texas’	
  Wholesal...
6	
  
Electric	
  Market	
  Structures	
  in	
  Texas	
  
7	
  
ERCOT:	
  Separate	
  companies	
  provide	
  retail,	
  
transmission	
  &	
  distribu;on	
  and	
  genera;on	
  
s...
8	
  
ERCOT:	
  Separate	
  companies	
  provide	
  retail,	
  
transmission	
  &	
  distribu;on	
  and	
  genera;on	
  
s...
9	
  
Outside	
  ERCOT:	
  A	
  single	
  company	
  provides	
  
retail,	
  transmission	
  &	
  distribu;on	
  and	
  
g...
10	
  
• 	
  New	
  power	
  plants	
  in	
  these	
  regions	
  can	
  be	
  built	
  by	
  both	
  regulated	
  en;;es	
...
11	
  
Texas’	
  Wholesale	
  
Electric	
  Market	
  
12	
  
The	
  Compe;;ve	
  Wholesale	
  Market:	
  	
  
A	
  Success	
  Story	
  	
  
CompeLLon	
  has	
  brought	
  great...
13	
  
PermiTed	
  and	
  Opera;ng	
  Electric	
  Genera;ng	
  
Units	
  in	
  Texas	
  
14	
  
ERCOT	
  Genera;on	
  Mix	
  Compared	
  to	
  U.S.	
  
Average	
  
Note:	
  Oil-­‐fired	
  genera+on	
  is	
  negli...
15	
  
Gas	
  on	
  the	
  Margin	
  in	
  ERCOT	
  
Nearly	
  Year-­‐Round	
  
•  Because	
  of	
  their	
  lower	
  marg...
16	
  
Texas	
  Has	
  the	
  Most	
  Installed	
  	
  
Wind	
  Energy	
  Capacity	
  	
  
Source:	
  American	
  Wind	
  ...
17	
  
ERCOT	
  Wholesale	
  	
  
Market	
  Management	
  
•  System	
  Reliability	
  
–  ERCOT	
  oversees	
  system	
  ...
18	
  
Wholesale	
  Market	
  	
  
Management	
  Outside	
  ERCOT	
  
•  System	
  Reliability	
  
–  Larger,	
  mulL-­‐st...
19	
  
1980 1990 2000 2010 2020 2030 2040
Increased	
  Popula;on	
  Drives	
  
Future	
  Electric	
  Consump;on	
  
Source...
20	
  
ERCOT	
  Reports	
  Sufficient	
  Power	
  
Expected	
  For	
  Summer	
  2015	
  
•  ERCOT	
  released	
  its	
  Seas...
21	
  
Long-­‐Term	
  Outlook	
  for	
  ERCOT	
  	
  
Genera;on	
  
Source:	
  ERCOT,	
  2015	
  Report	
  on	
  the	
  Ca...
22	
  
Emissions	
  and	
  the	
  Environment	
  
23	
  
Texas	
  is	
  Among	
  Na;onwide	
  Leaders	
  
in	
  Low	
  Emissions	
  Rates	
  
States	
  With	
  NOx,	
  SO2	...
24	
  
13	
  Northeast	
  States	
   Texas	
  
Sources:	
  	
  CO2,	
  NOx,	
  SO2:	
  EPA	
  Air	
  Markets	
  Program	
 ...
25	
  
Texas’	
  Electric	
  Genera;ng	
  Plants	
  Remain	
  
Among	
  Cleanest	
  NOx	
  EmiTers	
  in	
  the	
  Na;on	
...
26	
  
Area	
  
2014	
  NOx	
  Emission	
  
Rate	
  Averages	
  (lbs/
mmBtu)	
  
Na;onal	
   0.148	
  
Texas	
   0.088	
  ...
27	
  
Texas’	
  Electric	
  Genera;ng	
  Plants	
  Below	
  
Na;onal	
  Average	
  SO2	
  Emissions	
  Rates	
  
Source:	...
28	
  
Texas’	
  Electric	
  Genera;ng	
  Plants	
  Also	
  Below	
  
Average	
  CO2	
  Emissions	
  Rates	
  
Source:	
  ...
29	
  
Selected	
  Environmental	
  	
  
Programs	
  and	
  Fees	
  
•  The	
  electric	
  industry	
  is	
  among	
  the	...
30	
  
Water	
  Use	
  by	
  Electric	
  Generators	
  
31	
  
•  AECT	
  member	
  companies	
  represent	
  the	
  largest	
  private	
  owners,	
  builders,	
  and	
  operator...
32	
  
•  The	
  graphic	
  above	
  is	
  a	
  simplified	
  example	
  of	
  a	
  power	
  plant’s	
  use	
  of	
  water	...
33	
  
•  Many	
  electric	
  genera;ng	
  facili;es	
  in	
  Texas	
  obtain	
  TCEQ	
  permits	
  for	
  use	
  of	
  fr...
34	
  
Drought	
  Update	
  and	
  Available	
  	
  
Water	
  Resources	
  For	
  Power	
  Plants	
  
•  Most	
  electric	...
35	
  
Water	
  Usage	
  	
  
In	
  the	
  Average	
  Household	
  
•  About	
  3	
  percent	
  of	
  water	
  use	
  in	
...
36	
  
•  The	
  typical	
  American	
  household	
  consumes	
  300	
  	
  
gallons	
  of	
  water	
  each	
  day.	
  Pro...
37	
  
•  Generators	
  are	
  taking	
  many	
  ac;ons	
  to	
  help	
  ensure	
  water	
  supplies	
  allow	
  
for	
  r...
38	
  
•  Zebra	
  mussels	
  clog	
  cooling	
  water	
  intake	
  valves,	
  
as	
  well	
  as	
  impac;ng	
  water	
  s...
39	
  
	
  
•  Water	
  consump;on	
  for	
  electric	
  genera;on	
  is	
  currently	
  4%	
  of	
  total	
  Texas	
  wat...
40	
  
Transmission	
  and	
  Distribu;on	
  U;li;es	
  
41	
  
•  Transmission	
  and	
  DistribuLon	
  ULliLes:	
  
–  Provide	
  reliable	
  delivery	
  of	
  electricity	
  on...
42	
  
•  ERCOT	
  Transmission	
  	
  
–  1995	
  amendments	
  to	
  the	
  Public	
  U;li;es	
  Regulatory	
  Act	
  (P...
43	
  
Con;nued	
  Transmission	
  and	
  Distribu;on	
  	
  
Investment	
  Needed	
  Throughout	
  Texas	
  
•  According...
44	
  
•  While	
  certain	
  types	
  of	
  genera;on	
  can	
  be	
  constructed	
  quickly	
  -­‐-­‐	
  ofen	
  as	
  s...
45	
  
Distribu;on	
  Investment	
  	
  
Also	
  Needed	
  
•  The	
  need	
  to	
  replace	
  an	
  aging	
  distribu;on	...
46	
  
•  Non-­‐ERCOT	
  Transmission	
  
–  Wholesale	
  open	
  access	
  transmission	
  rights	
  subject	
  to	
  Fed...
47	
  
Compe;;ve	
  Renewable	
  Energy	
  Zones:	
  
Legisla;ve	
  and	
  Regulatory	
  Steps	
  
•  The	
  Texas	
  Legi...
48	
  
Map	
  of	
  Compe;;ve	
  	
  
Renewable	
  Energy	
  Zones	
  
49	
  
Energy	
  Efficiency	
  
50	
  
Energy	
  Efficiency	
  in	
  Texas:	
  
Overview	
  
•  Texas	
  con;nues	
  to	
  be	
  an	
  energy	
  leader	
  t...
51	
  
Energy	
  Efficiency	
  Programs	
  
Have	
  Exceeded	
  Goals	
  
•  In	
  2013,	
  the	
  majority	
  of	
  u;li;es...
52	
  
Benefits	
  of	
  Advanced	
  Metering	
  
•  Advanced	
  meters	
  and	
  other	
  new	
  technologies	
  	
  
and	...
53	
  
The	
  Smart	
  Grid	
  Transforms	
  the	
  Way	
  	
  
We	
  Buy,	
  Deliver	
  and	
  Use	
  Electricity	
  
Key...
54	
  
Advanced	
  Meters	
  Have	
  been	
  
Proven	
  to	
  be	
  Accurate,	
  Safe	
  and	
  Reliable	
  
•  Accurate:	...
55	
  
Compe;;ve	
  Retail	
  Electric	
  Market	
  	
  
in	
  ERCOT	
  
56	
  
The	
  ERCOT	
  Compe;;ve	
  Retail	
  Electric	
  
Market	
  is	
  Providing	
  Strong	
  Customer	
  
Benefits	
  ...
57	
  
Service Area
Average Fixed-
Price Offer
(12-month term)
Lowest Fixed-Price
Offer
(12-month term)
Lowest Price
Offer...
58	
  
Texas’	
  Na;onal	
  Price	
  Ranking	
  Has	
  	
  
Improved	
  Since	
  2001	
  
0
2
4
6
8
10
12
14
16
18
20
22
W...
59	
  Sources:	
  Dec	
  2001	
  electric	
  rates:	
  Public	
  U;lity	
  Commission	
  of	
  Texas;	
  May	
  2015	
  el...
60	
  
0"
2"
4"
6"
8"
10"
12"
14"
16"
18"
20"
LOWEST"DFW"PRICE"
LOWEST"DFW"PRICE"4"1"YR"FIXED"
LOWEST"LEWISVILLE"PRICE"
LO...
61	
  
Texas	
  Market	
  Compares	
  Favorably	
  to	
  Other	
  	
  
States	
  U;lizing	
  Natural	
  Gas	
  as	
  the	
...
62	
  
Prices	
  Rising	
  Na;onwide;	
  Compe;;ve	
  Offer	
  
Prices	
  Falling	
  in	
  Texas	
  
-20
0
20
40
60
80
100
...
63	
  
Protec;ons	
  in	
  the	
  Market	
  for	
  
Retail	
  Customers	
  
•  Make	
  Spanish-­‐language	
  support	
  av...
64	
  
Appendix	
  A:	
  
History	
  of	
  Electric	
  U;lity	
  Regula;on	
  
In	
  ERCOT	
  
65	
  
Pre-­‐1975	
  
•  Ci;es	
  regulated	
  electric	
  u;lity	
  service	
  and	
  rates.	
  
•  Generally,	
  a	
  de...
66	
  
1976-­‐1995	
  
	
  
•  1978	
  U.S.	
  Fuel	
  Use	
  Act	
  required	
  u;li;es	
  to	
  discon;nue	
  use	
  of	...
67	
  
Wholesale	
  	
  
compeLLon	
  	
  
legislaLon	
  	
  
passed	
  (SB	
  373)	
  	
  
May
1995	
  
Jan.	
  
2002	
  ...
68	
  
Wholesale	
  and	
  Retail	
  Electric	
  Compe;;on	
  
Were	
  Passed	
  With	
  Broad,	
  Bipar;san	
  Support	
 ...
69	
  
	
  
•  Senate	
  Bill	
  No.	
  373	
  enacted	
  in	
  May	
  1995	
  
–  Required	
  u;li;es	
  to	
  provide	
 ...
70	
  
•  ERCOT	
  market	
  restructuring	
  legislaLon,	
  Senate	
  Bill	
  7,	
  passed	
  in	
  1999	
  
–  Ini;ated	...
71	
  
Steps	
  to	
  Compe;;on:	
  
Transi;on	
  Period	
  
•  January	
  2002-­‐2006	
  TransiLon	
  Period	
  
–  “Affili...
72	
  
•  Incumbents	
  required	
  to	
  separate	
  business	
  acLviLes	
  into	
  the	
  following	
  units.	
  
–  Po...
73	
  
Appendix	
  B:	
  
AECT	
  Member	
  Companies	
  
74	
  
American	
  Electric	
  Power	
  
Electric	
  U+lity	
  
AEP	
  Texas	
  is	
  connected	
  to	
  and	
  serves	
  ...
75	
  
CenterPoint	
  Energy	
  
Transmission	
  &	
  Distribu+on	
  U+lity	
  
CenterPoint	
  Energy	
  maintains	
  the	...
76	
  
Constella;on	
  and	
  StarTex	
  Power	
  
Retail	
  Services	
  
	
  
Constella;on’s	
  retail	
  companies	
  se...
77	
  
El	
  Paso	
  Electric	
  Company	
  
Ver+cally	
  Integrated	
  U+lity	
  
El	
  Paso	
  Electric	
  is	
  a	
  ve...
78	
  
Entergy	
  Texas	
  
Ver+cally	
  Integrated	
  U+lity	
  
The	
  Entergy	
  Texas	
  service	
  area	
  starts	
  ...
79	
  
Exelon	
  Genera;on	
  
Electric	
  Genera+on	
  Company	
  
Corpora;on	
  is	
  the	
  na;on’s	
  leading	
  
comp...
80	
  
GDF	
  SUEZ	
  
Electric	
  Genera+on	
  Company	
  
•  North	
  American	
  headquarters	
  in	
  
Houston,	
  TX	...
81	
  
Lone	
  Star	
  Transmission	
  
Transmission	
  Company	
  
Lone	
  Star	
  Transmission,	
  LLC,	
  is	
  a	
  ra...
82	
  
Luminant	
  
Electric	
  Genera+on	
  Company	
  
Luminant	
  is	
  a	
  compe;;ve	
  power	
  
genera;on	
  busine...
83	
  
NextEra	
  
Electric	
  Genera+on	
  Company	
  
NextEra	
  Energy	
  Resource	
  owns	
  an	
  
extremely	
  diver...
84	
  
NRG	
  Energy	
  
Electric	
  Genera+on	
  Company	
  
NRG	
  is	
  the	
  na;on’s	
  largest	
  compe;;ve	
  
powe...
85	
  
Oncor	
  
Transmission	
  &	
  Distribu+on	
  U+lity	
  
Oncor	
  is	
  a	
  regulated	
  electric	
  distribu;on	
...
86	
  
Reliant,	
  Green	
  Mountain	
  and	
  	
  
Cirro	
  Energy	
  
Retail	
  Services	
  
Compe++ve	
  Areas	
  of	
 ...
87	
  
Texas-­‐New	
  Mexico	
  Power	
  Co.	
  
Transmission	
  &	
  Distribu+on	
  U+lity	
  
TNMP	
  provides	
  electr...
88	
  
TXU	
  Energy	
  
Retail	
  Electric	
  Provider	
  
TXU	
  Energy	
  is	
  a	
  market-­‐leading	
  retail	
  
ele...
89	
  
Xcel	
  Energy	
  
Ver+cally	
  Integrated	
  U+lity	
  
Xcel	
  Energy	
  owns	
  Southwestern	
  Public	
  
Servi...
90	
  
	
  Web: 	
  	
  	
  	
  	
  	
  AECT.net	
  
	
  	
  
	
  Twioer:	
  	
  	
  	
  	
  	
  twioer.com/AECTnet	
  
	
...
Upcoming SlideShare
Loading in …5
×

AECT Electricity 101

5,268 views

Published on

Information on the electric industry in Texas.

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
5,268
On SlideShare
0
From Embeds
0
Number of Embeds
3,285
Actions
Shares
0
Downloads
34
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

AECT Electricity 101

  1. 1.   Electricity  101:  The  Electric  Industry  in  Texas     July  2015   Legisla;ve  adver;sing  paid  for  by:  John  W.  Fainter,  Jr.  •  President  and  CEO  Associa;on  of  Electric  Companies  of  Texas,  Inc.   1005  Congress,  Suite  600  •  Aus;n,  TX  78701  •  phone  512-­‐474-­‐6725  •  fax  512-­‐474-­‐9670  •  www.aect.net  
  2. 2. 2   AECT  Principles   •  AECT  is  an  advocacy  group  composed  of  member  companies  commiTed  to:      -­‐  Ensuring  a  modern,  reliable  infrastructure  for  the  supply  &  delivery  of          electricity.      -­‐  Suppor;ng  efficient  compe;;ve  markets  that  are  fair  to  customers  and          market  par;cipants.      -­‐  Suppor;ng  consistent  and  predictable  oversight  and  regula;on  that  will          promote  investment  and  ensure  the  stability  of  Texas’  electric  industry.      -­‐  Promo;ng  an  economically  strong  and  environmentally  healthy  future  for          Texas,  including  conserva;on  and  efficient  use  of  available  resources.     •  AECT  member  companies  remain  dedicated  to  providing  Texas  customers  with        reliable  service  and  are  commiTed  to  the  highest  standards  of  integrity.     The  Associa+on  of  Electric  Companies  of  Texas,  Inc.  (AECT)  is  a  trade  organiza+on  of  investor-­‐owned   electric  companies  in  Texas.  Organized  in  1978,  AECT  provides  a  forum  for  member  company   representa+ves  to  exchange  informa+on  about  public  policy,  and  to  communicate  with  government   officials  and  the  public.  For  more  informa+on,  visit  www.aect.net.  
  3. 3. 3   AECT  Companies   Within  ERCOT   Transmission  and  Distribu;on  U;li;es   Retail  Electric  Providers   Genera;on  Companies  Total  ERCOT   Capacity:    >74,000  MW  
  4. 4. 4   AECT  Companies   Outside  of  ERCOT   Western  Electricity  Coordina;ng   Council  (WECC)   Southwest  Power  Pool  (SPP)   Midcon;nent  Independent   System  Operator  (MISO)   Total  ERCOT   Capacity:    >74,000  MW  
  5. 5. 5    Slide  6:  Electric  Market  Structures  in  Texas      Slide  11:  Texas’  Wholesale  Electric  Market      Slide  22:  Emissions  and  the  Environment      Slide  30:  Water  Use  by  Electric  Generators      Slide  40:  Transmission  and  Distribu;on  U;li;es      Slide  49:  Energy  Efficiency      Slide  55:  Compe;;ve  Retail  Electric  Market  in  ERCOT      APPENDICES      Slide  64:    Appendix  A:  History  of  Electric  Regula;on  in  ERCOT      Slide  73:  Appendix  B:  AECT  Member  Companies   Contents  
  6. 6. 6   Electric  Market  Structures  in  Texas  
  7. 7. 7   ERCOT:  Separate  companies  provide  retail,   transmission  &  distribu;on  and  genera;on   services   •   In  compe;;ve  markets,  consumers  have  mul;ple  retail  electric  providers  (REPs)   and  service  plans  to  choose  from.   •   Wholesale  and  retail  prices  are  set  by  compe;;ve  market  forces,  while  the  PUC   sets  transmission  and  distribu;on  rates.   Power  Flow   Financial  Flow   Regulated  
  8. 8. 8   ERCOT:  Separate  companies  provide  retail,   transmission  &  distribu;on  and  genera;on   services   •   Because  wholesale  electric  prices  are  set  by  the  compe;;ve  market,  the  risks   associated  with  the  cost  of  construc;on,  opera;ons  and  maintenance  of  a   genera;on  plant  are  borne  en;rely  by  the  generator  and  its  investors,  not  by  end-­‐ use  customers.   Power  Flow   Financial  Flow   Regulated  
  9. 9. 9   Outside  ERCOT:  A  single  company  provides   retail,  transmission  &  distribu;on  and   genera;on  services  in  each  area   •   In  fully  regulated  markets,  the  PUC  sets  retail  rates  charged  to  end-­‐use   customers.   •   Each  of  these  service  areas  is  part  of  mul;-­‐state  electric  grids,  with  differing   regula;ons.  In  many  cases,  ver;cally  integrated  u;li;es  purchase  wholesale  power   from  certain  unregulated  en;;es.   Power  Flow   Financial  Flow   Regulated  
  10. 10. 10   •   New  power  plants  in  these  regions  can  be  built  by  both  regulated  en;;es  and   certain  unregulated  en;;es  or  qualifying  facili;es.   •   Regulated  u;lity  power  plants,  however,  must  be  approved  by  the  PUC  afer  a   rigorous  review  of  need  and  si;ng.   Outside  ERCOT:  A  single  company  provides   retail,  transmission  &  distribu;on  and   genera;on  services  in  each  area   Power  Flow   Financial  Flow   Regulated  
  11. 11. 11   Texas’  Wholesale   Electric  Market  
  12. 12. 12   The  Compe;;ve  Wholesale  Market:     A  Success  Story     CompeLLon  has  brought  greater  efficiency     to  the  wholesale  market   –  Generators  shoulder  the  risk  of  building  new  power  plants,  bringing  efficient,  cost-­‐ effec;ve  genera;on  to  consumers.   –  New  power  plants  produce  more  electricity  per  unit  of  fuel.   –  New  power  plants  include  modern  environmental  emissions  controls.   The  compeLLve  market  is  in  the  public  interest   –  Opera;onal  efficiency  of  a  compe;;ve  market  helps  push  wholesale  prices   downward.   –  No  market  structure  is  more  effec;ve  at  ensuring  efficient  opera;ons  than  a   compe;;ve  one.   Policy  decisions  should  be  focused  on     maintaining  vibrant  compeLLon   –  Texas  leaders  should  support  policies  that  maintain  the  compe;;ve  market.   –  The  compe;;ve  market  will  bring  forward  the  right  mix  of  technology  and  fuel  type   based  on  environmental  choices  by  policymakers.  
  13. 13. 13   PermiTed  and  Opera;ng  Electric  Genera;ng   Units  in  Texas  
  14. 14. 14   ERCOT  Genera;on  Mix  Compared  to  U.S.   Average   Note:  Oil-­‐fired  genera+on  is  negligible  in  ERCOT,  accoun+ng  for  less  than  0.1%  of  ERCOT  capacity  and  load;  numbers  may  not  add  up  to  100%  due   to  rounding.     Sources:  ERCOT  (2014  data  for  energy;  2015  data  for  capacity);  EIA  (2013  data  for  energy,  2012  data  for  capacity)   Capacity  (MW)  Energy  (MWh)   ERCOT   U.S.  Average   Nuclear   Natural  Gas   Coal   Non-­‐Hydro  Renewables     (Mostly  Wind)   Hydro   27%   39%   19%   7%   1%   Coal   Nuclear   Natural  Gas   Other   41%   36%   12%   1%   Coal   Natural  Gas   Nuclear   Wind   55%  24%   6%   14%   1%   Other   Wind   11%   Other  (Mostly  Petroleum)   6%   Nuclear   Natural  Gas   Coal   Non-­‐Hydro  Renewables     (Mostly  Wind)   42%   29%   9%   7%   5%   Other  (Mostly  Petroleum)   7%   Hydro  
  15. 15. 15   Gas  on  the  Margin  in  ERCOT   Nearly  Year-­‐Round   •  Because  of  their  lower  marginal  costs,  nuclear  and  coal-­‐fired  power  plants  in  ERCOT  operate   approximately  90  percent  of  the  ;me   •  Some  natural  gas-­‐fired  genera;on  operates  at  nearly  all  ;mes  to  meet  demand   •  Peaking  natural  gas-­‐fired  power  plants  are  ramped  on  and  off,  depending  upon  demand   •  Wind-­‐generated  electricity  is  only  intermiTently  available,  depending  on  wind  condi;ons.   Typical  August   GeneraLon   Output   Source:  ERCOT  
  16. 16. 16   Texas  Has  the  Most  Installed     Wind  Energy  Capacity     Source:  American  Wind  Energy  Associa+on,  Through  Q2  2015   15635 6018 5708 3932 3667 3153 3075 3035 2967 2593 0 2000 4000 6000 8000 10000 12000 14000 16000 TX CA IA OK IL OR WA MN KS CO States With Most Installed Wind Capacity (MW) 23%  of  the  naLon’s  installed  wind  generaLon  capacity     is  located  in  Texas.  
  17. 17. 17   ERCOT  Wholesale     Market  Management   •  System  Reliability   –  ERCOT  oversees  system  reliability.   –  ERCOT  is  part  of  naLonal  reliability  council.   –  ERCOT  protocols,  approved  by  PUC,  mandate  system  reliability  standards  that  all  market   parLcipants  must  follow.   •  Statute  and  Rules  Address  “Market  Power”  and  GeneraLon  Merger  Issues   –  Independent  Market  Monitor  oversees  wholesale  market  operaLons.   –  GeneraLng  capacity  owned  and  controlled  by  a  Power  GeneraLon  Company  limited  to  20%  of   installed  generaLng  capacity  capable  of  delivering  power  to  a  power  region.   –  AdministraLve  penalLes  for  market  power  abuse  were  reviewed  and  updated  during  the  79th   Regular  Session.   –  Mergers  of  Power  GeneraLon  Companies  subject  to  PUC  review.   •  Market  Design   –  ERCOT  transiLoned  to  a  Nodal  Market  in  2009  as  a  result  of  PUC  rulemaking.   –  The  change  is  expected  to  bring  cost-­‐savings  and  addiLonal  efficiency  to  the  market  by   enhancing  market  transparency  and  allocaLng  costs  more  accurately  to  market  parLcipants.  
  18. 18. 18   Wholesale  Market     Management  Outside  ERCOT   •  System  Reliability   –  Larger,  mulL-­‐state  Councils  (MISO,  SPP,  WECC)  oversee  system  reliability.   –  Each  is  part  of  naLonal  reliability  council.   –  Protocols,  approved  by  the  Federal  Energy  Regulatory  Commission  (FERC),  mandate  system   reliability  standards  that  all  market  parLcipants  must  follow.   •  Wholesale  market  operaLons  overseen  by  FERC  
  19. 19. 19   1980 1990 2000 2010 2020 2030 2040 Increased  Popula;on  Drives   Future  Electric  Consump;on   Sources:  U.S.  Census,  Texas  State  Data  Center  0.5  scenario   Texas’  Projected  PopulaLon  Growth  (millions)   1980-­‐2040   28.9  million   25.1  million   37.0  million   32.9  million   20.9  million   17.0  million   14.2  million   To  meet  increases  in   electric  load  created   by  Texas’  rapid   popula;on  and   economic  growth,   Texas  will  require   addi;onal  power,   transmission     and  distribu;on,   customer  demand   response  and  energy   efficiency.  
  20. 20. 20   ERCOT  Reports  Sufficient  Power   Expected  For  Summer  2015   •  ERCOT  released  its  Seasonal  Assessment     of  Resource  Adequacy  (SARA)  on  May  1.   •  ERCOT  does  not  expect  periods  of  limited  capacity  on  the  grid.   •  According  to  ERCOT’s  meteorologist,  most  of  the  state  should  not  expect   temperatures  hoTer  than  last  summer.   –  Texas  should  expect  fewer  100-­‐degree  days  than  other  recent  summers  .  
  21. 21. 21   Long-­‐Term  Outlook  for  ERCOT     Genera;on   Source:  ERCOT,  2015  Report  on  the  Capacity,  Demand  and  Reserves  in  the  ERCOT  Region,  May  2015   65000$ 70000$ 75000$ 80000$ 85000$ 2016% 2017% 2018% 2019% 2020% 2021% 2022% 2023% 2024% 2025% MW% ERCOT%Summer%Resources%and%Firm%Load%Forecast:%2016C2025% Resources% Load%Forecast% Reserve% Margin% 17.0%% 18.5%% 21.4%% 18.7%% 17.1%% 16.1%% 10.4%%13.2%% 14.6%% 11.8%%
  22. 22. 22   Emissions  and  the  Environment  
  23. 23. 23   Texas  is  Among  Na;onwide  Leaders   in  Low  Emissions  Rates   States  With  NOx,  SO2  and  CO2  Emissions  Rates  Below  the   NaLonal  Average  for  Electric  GeneraLon   Source:  EPA  Air  Markets  Program  Data  (2014)  
  24. 24. 24   13  Northeast  States   Texas   Sources:    CO2,  NOx,  SO2:  EPA  Air  Markets  Program  Data  (2014);    Land  Area:  US  Census  Bureau,  2010   Land Area 247,175 mi2 261,232 mi2 Short Tons of CO2 412,349,942 258,189,583 Tons of SO2 724,547 343,405 Tons of NOx 333,916 121,487 Comparison  of  Electric  U;lity  Genera;on   Emissions:  Texas  vs.  the  Northeast    
  25. 25. 25   Texas’  Electric  Genera;ng  Plants  Remain   Among  Cleanest  NOx  EmiTers  in  the  Na;on   Source:  EPA  Air  Markets  Program  Data  (2014)  
  26. 26. 26   Area   2014  NOx  Emission   Rate  Averages  (lbs/ mmBtu)   Na;onal   0.148   Texas   0.088   0.334   NM   0.088  TX   0.177   OK   0.209   AR   0.120   LA   Texas  electric  generators  have  the  lowest  rate  of  NOx  emissions   in  the  region   Texas  is  Already  Leading  the   Way  in  Clean  Power  Plants  Regionally   Source:  EPA  Air  Markets  Program  Data  (2014)  
  27. 27. 27   Texas’  Electric  Genera;ng  Plants  Below   Na;onal  Average  SO2  Emissions  Rates   Source:  EPA  Air  Markets  Program  Data  (2014)  
  28. 28. 28   Texas’  Electric  Genera;ng  Plants  Also  Below   Average  CO2  Emissions  Rates   Source:  EPA  Air  Markets  Program  Data  (2014)  
  29. 29. 29   Selected  Environmental     Programs  and  Fees   •  The  electric  industry  is  among  the  most  heavily  regulated  in  the  na;on,  complying  with   hundreds  of  regula;ons  and  paying  millions  of  dollars  in  fees  annually.   Selected  Current     Environmental  Programs     -­‐  Compliance  with  Na;onal  Ambient  Air  Quality             Standards   -­‐   State  Implementa;on  Plan   -­‐   NOx  reduc;ons  for  electric  genera;ng  units   -­‐   Clean  Air  Interstate/Clean  Air  Mercury  Rules   -­‐   New  Source  Review  (NSR)   Preven;on  of  Significant  Deteriora;on   -­‐   Non-­‐aTainment  NSR,  including  offset   -­‐   State  Minor  NSR   -­‐   Title  V  and  Acid  rain  permits   -­‐   Compliance  Assurance  Monitoring   -­‐   Con;nuous  Emissions  Monitoring  Systems   -­‐   Toxic  Release  Inventory   -­‐   Monitoring  cooling  water   -­‐   Mass  Emission  Cap  and  Trade  Program   Selected  Current     Environmental  Fees     -­‐  Title  V  federal  opera;ng  permit  fees   -­‐  Air  inspec;on  fees   -­‐  Air  quality  permit  fees   -­‐  Air  quality  permit  renewal  fees   -­‐  Wastewater  inspec;on  fees   -­‐  Wastewater  permit  applica;on  fees   -­‐  Water  quality  fees   -­‐  Potable  water  fees   -­‐  Water  use  permit  applica;on  fees   -­‐  Hazardous  waste  genera;on  fees   -­‐  Non-­‐hazardous  waste  fees   -­‐   Low  level  radioac;ve  waste  fee   -­‐   Injec;on  well  fee  
  30. 30. 30   Water  Use  by  Electric  Generators  
  31. 31. 31   •  AECT  member  companies  represent  the  largest  private  owners,  builders,  and  operators  of   private  reservoirs  in  Texas.   •  Dependable  water  supplies  are  essen;al  to  the  reliable  genera;on  of  electricity.   –  Water  supply  is  generally  obtained  in  the  form  of  water  contracts/rights,  prior  to  the  construc;on   of  an  electric  genera;on  sta;on.     –  Water  contracts/rights  are  secured  at  a  level  to  ensure  a  reliable  water  source  during  future   drought  periods.     –  It  is  important  to  note  that  most  of  this  water  is  not  consumed:  water  consumed  for  electric   genera;on  is  currently  4%  of  total  Texas  water  demand.     •  The  reliable  genera;on  of  electricity  is  necessary  for  pumping  water  to  ci;es  and  farms,   and  for  water  treatment  and  sewage  treatment  –  among  other  necessi;es.     •  Moreover,  a  reliable  Texas  electricity  industry  is  necessary  for  the  state  to  meet  the  needs   of  our  growing  popula;on  and  the  new  and  growing  businesses  that  fuel  our  state’s   economy.     Overview  of  Water  Use     by  Electric  Generators  in  Texas  
  32. 32. 32   •  The  graphic  above  is  a  simplified  example  of  a  power  plant’s  use  of  water  for  steam  genera;on.   •  Most  power  plants  heat  water  in  a  closed  system  un;l  it  becomes  steam,  then  pressurize  that  steam  to   turn  a  genera;ng  turbine.   •  The  steam  is  then  routed  to  a  condenser,  where  the  water  is  condensed  and  reused  in  the  steam  cycle.   How  Texas’  Steam  Power  Plants   Use  Water   Turbine   Generator   Transformer      Pump      CombusLon      Water      Steam      Cooling  Water   Condenser      Fuel      Controls      Stack   Electricity   Flow  of  Power   Flow  of  H2O   Flow  of  H2O  
  33. 33. 33   •  Many  electric  genera;ng  facili;es  in  Texas  obtain  TCEQ  permits  for  use  of  fresh  surface   water  or  surface  saltwater  as  well  as  groundwater  conserva;on  district  permits  for  well   water  withdrawals.   •  Electric  genera;ng  facili;es  in  Texas  are  required  to  obtain  TCEQ  permits  for  their   wastewater  discharge.   –  AECT  member  companies  have  an  outstanding  record  of  compliance  with  state  and  federal  water  quality   standards  and  requirements,  which  includes  rigorous  monitoring  of  the  wastewater  discharge   •  In  addi;on  to  complying  with  state  and  federal  water  quality  regula;ons,  AECT  member   companies  are  commiTed  to  prac;cing  sound  water  conserva;on.  We:     –  Reuse  water  whenever  possible   –  Capture  storm  water  runoff   –  Restore,  enhance  and  create  aqua;c  habitats   –  Preserve  ecosystems   –  Enhance  and  create  valuable  wetlands     •  Many  reservoirs  created  by  electric  genera;ng  companies  are  used  for  recrea;onal   purposes,  including  camping,  boa;ng,  fishing  and  swimming.   Management  and  Use  of  Water     at  Texas’  Power  Plants  
  34. 34. 34   Drought  Update  and  Available     Water  Resources  For  Power  Plants   •  Most  electric  generators  require  the  use  of  water  for  system  cooling.     •  The  vast  majority  of  this  water  is  returned  to  its  source  –  typically  a   reservoir  built  by  the  power  plant  owner.   •  As  of  July  2015,  drought  condi;ons  have  subsided  in  Texas.  The  system   remained  reliable  during  recent  droughts.   Source:  United  States  Drought  Monitor  –  July  21,  2015  
  35. 35. 35   Water  Usage     In  the  Average  Household   •  About  3  percent  of  water  use  in  the  average  household  is  for  electric   produc;on.   Source:  Viability  and  Impacts  of  Implemen;ng  Various  Power  Plant  Cooling  Technologies  in  Texas,     prepared  for  EPRI  by  Texas  A&M  University,  July  2012  
  36. 36. 36   •  The  typical  American  household  consumes  300     gallons  of  water  each  day.  Producing  the  electricity     consumed  by  that  household  requires  only  about     9½  gallons.     •  Only  about  3%  of  an  average  resident’s  total  daily     consump;on  of  electricity  is  needed  to  take  care     of  all  of  daily  water  needs.   –  This  includes  pumping  the  raw  water  from  the  ground     or  lake,  pumping  it  to  a  treatment  plant  and  trea;ng  it,     delivering  the  treated  water  to  the  resident  and  trea;ng     the  resul;ng  wastewater.   •  EPRI’s  Water  Conserva;on  &  Technology  Center  report  supports  once-­‐through  cooling   used  on  the  majority  of  fossil  fuel-­‐fired  power  plants  today,  finding  that  “Manda;ng  one   cooling  technology  may  result  in  job  losses  and  have  unintended  consequences,”  due  to   the  costs  and  poten;al  impact  on  the  broader  state  economy.     Key  Findings   On  Water  Use  in  Texas   Source:  Viability  and  Impacts  of  Implemen;ng  Various  Power  Plant  Cooling  Technologies  in  Texas,     prepared  for  EPRI  by  Texas  A&M  University,  July  2012  
  37. 37. 37   •  Generators  are  taking  many  ac;ons  to  help  ensure  water  supplies  allow   for  reliable  opera;on.  Examples  include:   –  Implemen;ng  water  conserva;on  measures   –  Reusing  water  whenever  possible   –  Using  treated  municipal  sewage  effluent  for  cooling   –  Upgrading  power  plant  processes  to  minimize  or  eliminate  use  of  water  for  non-­‐ cooling  purposes   –  Capturing,  trea;ng  and  using  storm  runoff  from  the  plant  site   –  Procuring  addi;onal  water  rights   –  Building  pipelines  to  remote  water  sources   –  Adding  pumping  capability   –  Using  advanced  water  treatment  systems  to  treat  and  use  surface  water  that  naturally   contains  high  levels  of  minerals  or  dissolved  solids,  thus  avoiding  use  of  higher  quality   surface  water   Mi;ga;ng  Drought  Effects  
  38. 38. 38   •  Zebra  mussels  clog  cooling  water  intake  valves,   as  well  as  impac;ng  water  supply.  The  mussels   have  mul;plied  so  quickly  in  Lake  Texoma  that   the  North  Texas  Municipal  Water  District  is  no   longer  able  to  pump  water.   •  Hydrilla,  a  non-­‐na;ve  invasive  aqua;c  plant,  is   found  in  over  100  bodies  of  water  in  Texas.  In   great  quan;;es,  it  can  affect  water  supplies   and  opera;ons  of  power  plants.     Addi;onal  Water  Challenges:   Invasive  Species  
  39. 39. 39     •  Water  consump;on  for  electric  genera;on  is  currently  4%  of  total  Texas  water  demand.     –  The  Texas  Water  Development  Board  projects  this  to  grow  to  7.4%  by  2060.  It  is  noteworthy  that  this  increase  in   water  usage  is  sufficient  to  provide  electricity  for  a  popula;on  projected  to  grow  over  the  same  ;me  frame  by   82%.     •  AECT  member  companies  have  made  substan;al  investments  to  secure  water  contracts/ rights  and  groundwater  resources  and  build  and  maintain  reservoirs  in  advance  of  actual   use.   •  All  of  these  water  contracts/rights  and  groundwater  resources  have  been  or  are  held  for   substan;al  periods  of  ;me  for  future  genera;ng  units  and  also  during  drought  periods  for   exis;ng  power  plants.   •  AECT  member  companies  are  working  hard  to  ensure  adequate  water  supply  for  reliable   electric  genera;on,  including  building  pipelines  to  remote  water  sources,  seeking   addi;onal  water  rights,  adding  pumping  capability,  and  use  of  effluent  for  cooling,  and   implemen;ng  water  conserva;on  measures.     Genera;on  and  Water  Usage:   Summary  
  40. 40. 40   Transmission  and  Distribu;on  U;li;es  
  41. 41. 41   •  Transmission  and  DistribuLon  ULliLes:   –  Provide  reliable  delivery  of  electricity  on  a  24-­‐7  basis.   –  Invest  in  and  build  infrastructure  (e.g.,  transmission  lines,  Smart  Grid)  to  support  the   needs  of  Texas’  growing  economy.   –  Manage  their  transmission  networks  under  the  direc;on  of  ERCOT;  coordina;ng  with   ERCOT  on  transmission  planning  ac;vi;es.   –  Respond  to  outages  (e.g.,  storms,  natural  disasters)  that  affect  the  grid  and  restore  service   as  quickly  as  safely  possible.   –  Provide  key  market  informa;on,  such  as  premise  informa;on  and  metering  services  to   facilitate  successful  opera;on  of  the  ERCOT  deregulated  market.   –  Provide  regulated  transmission  and  distribu;on  services  to  facilitate  opera;ons  of   wholesale  and  retail  business  en;;es.   –  Charge  regulated  delivery  rates  to  REPs   §  Rates  based  on  a  historical  cost  of  service  including  a  PUC-­‐established  return  on  capital   investment   §  Alloca;on  of  ERCOT-­‐wide  transmission  costs   §  Non-­‐bypassable  charges  include  the  cost  to  deliver  electricity,  System  Benefit  Fund,  recovery  of   true-­‐up  costs  and  nuclear  decommissioning  expenses  for  exis;ng  nuclear  facili;es   TDUs’  Role  in  the  Compe;;ve  ERCOT  Market  
  42. 42. 42   •  ERCOT  Transmission     –  1995  amendments  to  the  Public  U;li;es  Regulatory  Act  (PURA)  required  PUC  to  ensure   open  access  to  transmission  grid,  allowing  new  independent  generators  to  u;lize   transmission  network.   –  TX76RSB  7  adopted  “postage  stamp”  transmission  pricing  structure  and  eliminated  impact   of  loca;on  on  transmission  rates.   –  Transmission  Cost  of  Service  (TCOS)  ratemaking  structure  implemented  and  billed  to   distribu;on  service  providers  (DSP).   –  DSPs  recover  TCOS  through  the  TDSP  delivery  rate  and  transmission  cost  recovery  factor  (TCRF),   approved  by  PUC.   –  New  transmission  investment  is  coordinated  through  the  ERCOT  regional  transmission   planning  process  and  requires  PUC  facility  cer;fica;on.   Transmission  &  Distribu;on     Market  Design:  ERCOT  
  43. 43. 43   Con;nued  Transmission  and  Distribu;on     Investment  Needed  Throughout  Texas   •  According  to  the  Texas  State  Data   Center,  5  million  new  residents  are   expected  in  Texas  by  2020.   •  New  genera;on  must  be  delivered   effec;vely  and  efficiently  to  popula;on   centers  of  the  state.   •  Texas  must  provide  regulatory  certainty   and  fair  rates  of  return  to  ensure   appropriate  capital  investment.   •  Though  not  shown  here,  areas  of  Texas   located  outside  the  ERCOT  grid  are  also   growing,  both  in  terms  of  popula;on   and  economic  development.   Source:  ERCOT,  “Report  on  Exis+ng  and  Poten+al  Electric  System   Constraints  and  Needs,”  January  2012  (most  recent  update)  
  44. 44. 44   •  While  certain  types  of  genera;on  can  be  constructed  quickly  -­‐-­‐  ofen  as  short  as  12-­‐18  months  -­‐-­‐   transmission  lines  typically  take  between  three  and  five  years.  Genera;on  can  be  brought  into  the   market  more  rapidly  if  the  si;ng  takes  advantage  of  the  exis;ng  transmission  infrastructure.   •  Building  long  transmission  lines  can  affect  many  landowners,  ofen  requiring  a  lengthy  and  extensive   easement  acquisi;on  effort.   •  The  transmission  line  si;ng  process  must  take  into  account  the  impact  of  those  lines  on   environmentally  sensi;ve  and  historically  significant  lands.   •  U;lity  is  not  typically  allowed  to  begin  recovering  costs  un;l  year  5  or  6.   Challenges  of  Transmission   Line  Construc;on   Example  of  Transmission  ConstrucLon  Process  in  ERCOT  
  45. 45. 45   Distribu;on  Investment     Also  Needed   •  The  need  to  replace  an  aging  distribu;on  infrastructure   to  meet  popula;on  and  demand  growth  will  require   con;nued  investment.     •  It  is  becoming  more  evident  that  rising  construc;on   material  costs  are  an  increasingly  important  driver   contribu;ng  to  the  higher  actual  and  planned  u;lity   industry  infrastructure  investments.     •  Na;onwide,  distribu;on  investment  is  expected  to  be  almost  triple  the  size  of  projected   transmission  spending,  according  to  the  Edison  Electric  Ins;tute.  Distribu;on  investment   is  likely  to  exceed  genera;on  and  environmental  capital  spending,  as  well.  
  46. 46. 46   •  Non-­‐ERCOT  Transmission   –  Wholesale  open  access  transmission  rights  subject  to  Federal  Energy  Regulatory   Commission  (FERC)  jurisdic;on.   –  FERC  transmission  pricing  reflects  loca;on  of  genera;on.   –  FERC  requires  generators  to  bear  higher  cost  rela;ve  to  the  ERCOT  system  of   connec;ng  with  the  transmission  grid.   –  Cer;fica;on  in  Texas  is  with  the  PUC.   –  PUC  rules  allows  most  non-­‐ERCOT  u;li;es  to  recover  transmission  investments   between  rate  cases  through  a  transmission  cost  recovery  factor  (TCRF).   –  U;li;es  may  also  recover  certain  distribu;on  investments  between  rate  cases   through  a  distribu;on  cost  recovery  factor  (DCRF)   Transmission  &  Distribu;on     Market  Design:  Non-­‐ERCOT  
  47. 47. 47   Compe;;ve  Renewable  Energy  Zones:   Legisla;ve  and  Regulatory  Steps   •  The  Texas  Legislature  mandated  steady  increases  in  renewable  power  in  TX76RSB  7   (1999)  and  TX791RSB  20  (2005).   –  Star;ng  Line:  880  MW  in  1999   –  Old  Goal  1:  2,880  MW  by  2009  (Achieved  by  2007)   –  New  Goal  1:  5,880  MW  by  2015   –  New  Target  1:  10,000  MW  by  2025   –  New  Target  2:  500  MW  non-­‐wind  renewable  genera;on   •  TX791SB  20  (2005)  also  required  PUC  to:   –  designate  Compe;;ve  Renewable  Energy  Zones  (CREZs)  in  areas  in  which  renewable  energy   resources  and  suitable  land  areas  are  sufficient  to  develop  genera;ng  capacity  from  renewable   technologies;   –  develop  a  plan  to  construct  necessary  transmission  capacity  in  a  manner  that  is  most  beneficial   and  cost  effec;ve  to  customers;  and   –  take  into  account  transmission  constraints,  the  need  for  genera;on  and  the  level  of  financial   commitment  by  generators  when  defining  CREZs.   •  PUC  adopted  Substan;ve  Rule  25.174  in  December  2006,  which  creates  framework  for   determining  CREZs.  
  48. 48. 48   Map  of  Compe;;ve     Renewable  Energy  Zones  
  49. 49. 49   Energy  Efficiency  
  50. 50. 50   Energy  Efficiency  in  Texas:   Overview   •  Texas  con;nues  to  be  an  energy  leader  through  policies  designed  to  improve  the  state’s  energy   efficiency  programs  and  bring  improved  technologies  to  the  electric  market.   –  U;lity-­‐run  programs  have  reduced  customer  consump;on,  thereby  reducing  the  need  for  the  construc;on  of   new  genera;on.   –  Advanced  metering  provides  informa;on  and  opportuni;es  that  enable  customers  to  take  beTer  control  of   their  energy  consump;on  and  bills.   –  Houston  and  Dallas-­‐Fort  Worth  ranked  1  and  2  na;onally  in  number  of  homes  that  qualified  for  EPA’s  “Energy   Star”  designa;on.     •  The  Texas  Electric  Choice  Act  requires  electric  u;li;es  to  provide  energy  efficiency  programs  and   incen;ves,  including  efficiency  programs  for  low-­‐income  customers.   –  TX80RHB  3693  raised  the  energy  efficiency  goal  for  electric  u;li;es  from  10%  of  annual  demand  growth  to   15%  in  2008  and  20%  in  2009.   –  The  recent  PUC  recently  passed  a  rule  requiring  u;li;es  to  offset  30  percent  of  their  projected  growth  in   demand  by  2013.   •  ERCOT  compe;;ve  retailers  are  developing  innova;ve  plans  and  products  that  will  help  customers   use  less  energy  (e.g.,  customer  educa;on  programs,  energy  audits,  Internet-­‐controllable   thermostats,  etc.)  
  51. 51. 51   Energy  Efficiency  Programs   Have  Exceeded  Goals   •  In  2013,  the  majority  of  u;li;es  in  Texas  exceeded  their  statewide  energy  efficiency  goals.  U;li;es  achieved  548  GWh   of  energy  savings  and  415  MW  of  peak  demand  reduc;on.   Demand  ReducLon  by  Investor-­‐Owned  ULliLes,  2003-­‐2013   Source:  Fron;er  Associates  LLC,  “Energy  Efficiency  Accomplishments  of  Texas  Investor  Owned  U;li;es,  Calendar  Year  2013,”  prepared  for   the  Electric  U;lity  Marke;ng  Managers  of  Texas  (EUMMOT)  
  52. 52. 52   Benefits  of  Advanced  Metering   •  Advanced  meters  and  other  new  technologies     and  associated  infrastructure  will  provide  informa;on     and  opportuni;es  that  will  enable  customers  to  beTer     understand  the  impact  of  controlling  their  energy     consump;on.   •  By  controlling  their  energy  consump;on,  customers     can  beTer  manage  their  bills  and  lessen  their     environmental  impact.   •  Advanced  meters  will  allow  for  more  automa;on  of  u;lity  func;ons  such  as   meter  reading  and  connec;ons/disconnec;ons,  which  help  to  reduce  costs.    
  53. 53. 53   The  Smart  Grid  Transforms  the  Way     We  Buy,  Deliver  and  Use  Electricity   Key  Stakeholder   Consumers   Electric  ULlity   Retailers   • Automated  meter  reading   • Improved  system  reliability  and  greater  ease/;meliness  of  power  restora;on   • Improved  line  fault  detec;on  and  diagnos;cs   • Real  ;me  grid  feedback  allows  for  more  effec;ve  loading  of  u;lity  assets     • Enables  increased  monitoring  and  diagnos;cs  to  enhance  the  life  of  u;lity  assets   •  Electric  reliability  improvements   •  Friendly  access  to  detailed  consump;on  informa;on  to  make  informed  choices  and   enable  faster  transac;ons   •  Enables  and  promotes  energy  conserva;on   •  Efficient  switching  and  connec;ons/disconnec;ons   • Expands  retailer’s  ability  to  offer  new  products   • Establishes  plaxorm  to  offer  future  home  appliance  monitoring  and  control   • Allows  retailers  to  offer  pre-­‐payment  programs   • Efficient  switching  and  connec;ons/disconnec;ons   Environment   • Enables  demand-­‐side  management   • Facilitates  integra;on  of  solar  and  wind  genera;on  into  grid   • Promotes  energy  efficiency  through  immediate  energy  consump;on  awareness   • Facilitates  reduced  electric  consump;on  which  leads  to  reduced  power  plant  emissions   Benefits  
  54. 54. 54   Advanced  Meters  Have  been   Proven  to  be  Accurate,  Safe  and  Reliable   •  Accurate:  Advanced  meters  are  rigorously  tested  and  must  be  independently  cer;fied   to  prove  their  measurements  are  accurate.  In  fact,  repeated  tests  confirm  that   advanced  meters  are  ofen  more  accurate  than  analog  meters.   •  Beneficial:  Increased  reliability,  restora;on  afer  a  power  outage  and  remote  meter   reading  are  among  the  immediate  cost-­‐savings  for  advanced  meters.   •  Secure:  Advanced  meters  are  a  technological  leap,  much  like  cell  phones  and  other   evolving  industries.  U;li;es  use  advanced  encryp;on  technology  to  safeguard   consumer  data.   •  Safe:  Digital  meter  radio  frequency  (RF)  emissions  are  well  below  FCC  standards  and  are   minimal  compared  to  the  RF  emissions  of  many  commonly  used  household  devices.     The  extensive  scien;fic  literature  reflects  that  there  is  no  credible  evidence  of  nega;ve   health  impacts  from  the  low  level  of  RF  emissions  from  digital  meters.     •  Private:  U;li;es  adhere  to  PUC  rules  and  strict  policies,  following  Texas  laws  that   regulate  the  use  of  personal  informa;on  for  business  func;ons  like  billing  and  customer   service.  
  55. 55. 55   Compe;;ve  Retail  Electric  Market     in  ERCOT  
  56. 56. 56   The  ERCOT  Compe;;ve  Retail  Electric   Market  is  Providing  Strong  Customer   Benefits   Key  Takeaways   –  Price  offers  are  substan;ally  lower  than  prices  available  just  before   compe;;on  began,  especially  when  adjusted  for  infla;on   –  Texas’  na;onal  electric  price  ranking  has  improved  since  the  market   opened  in  2001   –  Every  compe;;ve  area  in  ERCOT  has  variable  and  1-­‐year  lock  offers   available  that  are  far  lower  than  the  na;onal  average  price  and  nearly  all   state  averages   –  Among  states  like  Texas  that  depend  heavily  on  natural  gas  for  power   genera;on,  Texas  prices  compare  favorably,  with  even  lower  prices   available  to  those  in  the  compe;;ve  market   –  The  ERCOT  market  provides  efficient  market  prices  that  track  natural  gas   prices  
  57. 57. 57   Service Area Average Fixed- Price Offer (12-month term) Lowest Fixed-Price Offer (12-month term) Lowest Price Offer Available Dec. 2001 prices, not adjusted for inflation Dec. 2001 prices, adjusted for inflation AEP Texas Central 10.1¢/kWh 5.7¢/kWh 5.6¢/kWh 9.6¢/kWh 12.9¢/kWh AEP Texas North 10.2¢/kWh 5.9¢/kWh 5.9¢/kWh 10.0¢/kWh 13.5¢/kWh CenterPoint Energy 9.5¢/kWh 5.0¢/kWh 4.7¢/kWh 10.4¢/kWh 14.0¢/kWh Oncor 8.9¢/kWh 5.1¢/kWh 4.5¢/kWh 9.7¢/kWh 13.1¢/kWh TNMP 9.5¢/kWh 5.8¢/kWh 5.5¢/kWh 10.6¢/kWh 14.3¢/kWh Lower  Prices  Available  Today  than  Before   Compe;;on  Began   Sources:  PUC  Historical  Data,  Bureau  of  Labor  Sta;s;cs  -­‐  Consumer  Price  Index  (34.7%  infla;on  since  December  2001),   www.powertochoose.org  offers  as  of  July  1,  2015     July  2015   December  2001  
  58. 58. 58   Texas’  Na;onal  Price  Ranking  Has     Improved  Since  2001   0 2 4 6 8 10 12 14 16 18 20 22 WA LA WV KY AR ND TN OR NE OK UT MT WY SD NC ID IN FL VA GA MO CO TX AL MS IA NM MN AZ SC KS OH DC IL NV MD PA MI DE WI NJ ME CA VT NY RI NH AK MA CT HI 0 2 4 6 8 10 12 14 16 18 KY WA ID WV OR TN ND NE UT WY MT IN MO AL OK MS SD CO MN KS MD SC AR GA DC VA WI LA NC MI AZ OH IA FL DE IL NM TX NV PA NJ CT CA AK RI MA NH VT ME NY HI Source:  EIA  average  annual  residen;al  rates  for  2001  and  May  2015  monthly  data  (latest  available  informa;on).       Average  lowest  available  price  from  powertochoose.org  Web  site  as  of  May  1,  2015  for  a  residen;al  customer  using  an  average  of  1,000  kWh  per  month.   ¢/kWh  ¢/kWh   2001  State  Ranking  (Pre-­‐CompeLLon)   May  2015  State  Ranking  (Latest  Available)   Average  lowest  12-­‐ month  fixed  price  offer   in  compeLLve  market  in   May  2015:   5.6¢/kWh  
  59. 59. 59  Sources:  Dec  2001  electric  rates:  Public  U;lity  Commission  of  Texas;  May  2015  electric  rates:  Power  to  Choose;  Average  Residen;al  Electricity:  U.S.   Energy  Informa;on  Administra;on  (Dec  2001  and  May  2015;  All  other  data:  U.S.  Bureau  of  Labor  Sta;s;cs   Gallon  of  Gas   145%   Dozen  Eggs   112%   Ground  Beef   99%   Ground  Coffee   62%   Hourly  Legal  Services   57%   U.S.  Average  Residen;al  Electricity   56%   Loaf  of  White  Bread   46%   Houston-­‐Galveston  Rent   44%   Dallas-­‐Fort  Worth  Rent   30%   Gallon  of  Milk   17%   ERCOT  Average  Lowest  Fixed  Price  Offer   -­‐44%   ERCOT  Average  Lowest  Available  Offer   -­‐44%   Price  Change:  December  2001  to  May  2015   Electric  Price  Offers  Compared   With  Other  Retail  Products  
  60. 60. 60   0" 2" 4" 6" 8" 10" 12" 14" 16" 18" 20" LOWEST"DFW"PRICE" LOWEST"DFW"PRICE"4"1"YR"FIXED" LOWEST"LEWISVILLE"PRICE" LOWEST"LEWISVILLE"PRICE"4"1"YR"FIXED" LOWEST"HOUSTON"PRICE" LOWEST"ABILENE"PRICE" LOWEST"ABILENE"PRICE"4"1"YR"FIXED" LOWEST"CORPUS"CHRISTI"PRICE" LOWEST"CORPUS"CHRISTI"PRICE"4"1"YR"FIXED" LOWEST"HOUSTON"PRICE"4"1"YR"FIXED" Washington" Louisiana" West"Virginia" Kentucky" Arkansas" North"Dakota" Tennessee" Oregon" Nebraska" Oklahoma" Utah" Montana" Wyoming" South"Dakota" North"Carolina" Idaho" Indiana" Florida" Virginia" Georgia" Missouri" Colorado" Texas"(Statewide)" Alabama" Mississippi" Iowa" New"Mexico" Minnesota" Arizona" South"Carolina" Kansas" Ohio" US"AVERAGE" District"of"Columbia" Illinois" Nevada" Maryland" Pennsylvania" Michigan" Delaware" Wisconsin" New"Jersey" Maine" California" Vermont" New"York" Rhode"Island" New"Hampshire" Alaska" Massachuse[s" Conneccut" Hawaii" CENTS&PER&KWH& RESIDENTIAL"RETAIL"ELECTRICITY"PRICES" All&Data&from&May&2015& Na;onal&Average& Every  Compe;;ve  Area  in  ERCOT  Has     Variable  and  1-­‐Year  Lock  Offers  Available   that  are  Lower  than  the  Na;onal  Average  Price   Sources:  PowerToChoose.org  offers  as  of  May  1,  2015   U.S.  Energy  Informa+on  Administra+on,  latest  available  data  
  61. 61. 61   Texas  Market  Compares  Favorably  to  Other     States  U;lizing  Natural  Gas  as  the  Primary     Genera;on  Source   Sources:  Energy  Informa+on  Administra+on  (data  as  of  May  2015);  EIA  natural  gas-­‐intensive  states;  powertochoose.org  as   of  May  1,  2015   Note:  Texas  statewide  average  price  includes  prices  from  both  compeLLve  and  regulated  areas  of  the  state.   0.00 5.00 10.00 15.00 20.00 25.00 MA AK RI NY CA ME NV MS TX FL LA ¢/kWh Average Residential Electric Price Among Natural Gas- Intensive States !May!2015!(Latest!Available!Consistent!Data)! Average  Lowest  Available  12-­‐Month   Fixed  Price  Offer  in  ERCOT   Compe;;ve  Market  (May  2015):   5.6¢/kWh  
  62. 62. 62   Prices  Rising  Na;onwide;  Compe;;ve  Offer   Prices  Falling  in  Texas   -20 0 20 40 60 80 100 TXCompetitive TX ME FL NaturalGasStates LA NY CA DE MA NV CT AR NJ WA VT NC RestructuredStates DC NH US(-TX) CO RI PA MT AK HI IL TN IA MS AL MD OR WI VA GA MI SC OH MN NM UT KY AZ IN SD WY OK WV ND NE KS MO ID Residential Price Changes (%) - Jan 2007 - May 2015 ResidenLal  Price  Change  (%)  –  Jan  2007  to  May  2015   Texas   0%   Gas-­‐Dependent     States  (excl.  TX)   9%   US  Average     (excl.  TX)   32%   Lowest  CompeLLve     Offer  Prices  in  Texas   -­‐53%   Restructured     States     (excl.  TX)   31%   Sources:  Energy  Informa+on  Administra+on   (data  as  of  May  2015);  EIA  natural  gas-­‐ intensive  states  and  restructured  states;   powertochoose.org  as  of  May  1,  2015  
  63. 63. 63   Protec;ons  in  the  Market  for   Retail  Customers   •  Make  Spanish-­‐language  support  available  to  customers   •  Place  customer  deposits  in  interest-­‐bearing  accounts   and  return  that  interest  to  customers  when  the  deposit   is  returned     •  Follow  a  mandated  ;meline  for  disconnec;on  of   customers   •  Provide  no;ce  in  case  of  disconnec;on   •  Inves;gate  any  customer  complaint  within  21  days   •  Provide  a  Terms  of  Service  Statement  detailing  contract   terms,  cancella;on  penal;es,  deposit  requirements,   fees,  payment  arrangement  op;ons,  how  to  cancel   service,  and  other  obliga;ons  of  the  REP   •  Allow  a  customer  to  cancel  a  service  agreement  within   three  federal  business  days  afer  receiving  the  terms  of   service   •  Allow  a  customer  to  cancel  the  switch  upon  receiving   no;fica;on  that  the  switch  will  occur   •  Register  with  the  PUC  and  meet  financial   requirements  set  by  the  Commission   •  Communicate  clearly  with  consumers  regarding  no;ce   of  contract  expira;on   •  Demonstrate  creditworthiness  to  purchase  power  to   serve  its  customers   •  Demonstrate  the  technical  ability  to  supply  electricity   •  Maintain  privacy  of  customer  informa;on   •  Not  discriminate  among  customers   •  Not  add  charges  to  a  customer’s  electric  bill  for   services  not  requested  by  the  customer   •  Provide  a  “Your  Rights  as  a  Customer”  disclosure   •  Provide  an  Electricity  Facts  Label  to  allow  for  an   “apples-­‐to-­‐apples”  comparison  among  REPs   •  Make  deferred  payment  plans  available  for  those   expressing  an  inability  to  pay   •  Provide  the  LITE-­‐UP  discount  for  low-­‐income  Texans   during  summer  months   Among  other  requirements,  REPs  serving  residen;al  customers  must:   Even  this  brief  sampling  of  regula;ons  highlights  that   customers  are  protected  
  64. 64. 64   Appendix  A:   History  of  Electric  U;lity  Regula;on   In  ERCOT  
  65. 65. 65   Pre-­‐1975   •  Ci;es  regulated  electric  u;lity  service  and  rates.   •  Generally,  a  declining  cost  industry  –  rate  applica;ons  most  ofen  filed  to  decrease  rates.   1975   •  Infla;on,  construc;on  costs  and  fuel  costs  drive  electricity  rates  up.   •  64th  Texas  Legislature  enacts  Public  U;lity  Regulatory  Act  (PURA)  to  implement  state  regula;on  of   electric  u;lity  service  and  rates  (Ci;es  permiTed  to  retain  original  jurisdic;on).   –  Service  area,  transmission  line  and  genera;ng  plant  cer;fica;on.   –  Rate  regula;on  (based  on  cost  of  service  plus  reasonable  return  on  investment).   –  Rates  based  on  historical  test  year  costs  and  original  costs  of  infrastructure,  less  deprecia;on.   –  Service  quality  regula;on.   –  Customer  protec;on.   History  of  Electric     U;lity  Regula;on  in  Texas  
  66. 66. 66   1976-­‐1995     •  1978  U.S.  Fuel  Use  Act  required  u;li;es  to  discon;nue  use  of  natural  gas  and  encouraged  the  use  of   coal  and  nuclear  for  fuel.     •  Infla;on,  vola;le  fuel  costs  and  the  need  to  add  new  genera;ng  capacity  con;nue  to  increase   electricity  rates.   •  Rate  proceedings  at  PUC  become  increasingly  adversarial.   –  Consumer  groups  concerned  about  frequency  and  amount  of  rate  increases.   –  U;li;es  concerned  about  increasingly  large  PUC  cost  disallowances  that  are  at  odds  with  the   regulatory  compact  and  erode  rates  of  return.   •  Large  customers  ;re  of  subsidizing  other  ratepayers  seek  opportuni;es  to  by-­‐pass  regulated  rates   and  obtain  choice  of  suppliers.   –  Cogenera;on/self-­‐genera;on.   –  Advocate  wholesale  compe;;on  and  transmission  open  access.   –  Advocate  “retail  wheeling”.   •  Natural  gas  was  favored  again  when  the  1978  U.S.  Fuel  Use  Act  was  repealed  in  the  1990s.   History  of  Electric     U;lity  Regula;on  in  Texas  
  67. 67. 67   Wholesale     compeLLon     legislaLon     passed  (SB  373)     May 1995   Jan.   2002     Retail   compeLLon   legislaLon   Passed  (SB  7)   June     1999   Sept.   1999   ERCOT   Electric   rates         frozen     Jan.   2005   July   2001   Texas   Choice   pilot     program     begins     Affiliate   REPs   allowed  to   offer  non-­‐ price-­‐to-­‐ beat  prices   Steps  to  Electric  Compe;;on   In  Texas   Retail   choice   begins  in   ERCOT   Jan.   2007   End  of   price-­‐to-­‐ beat  
  68. 68. 68   Wholesale  and  Retail  Electric  Compe;;on   Were  Passed  With  Broad,  Bipar;san  Support   •  Senate  Bill  373,  which  opened  the  wholesale  electricity  market  in  Texas,  passed   in  1995  when  the  Democrats  were  the  majority  party  in  the  House  and  Senate.       –  The  Speaker  of  the  House  and  the  Lieutenant  Governor  were  both  Democrats,  and   the  bill  sponsors  and  authors  were  both  Democrats.   •  Senate  Bill  7,  which  opened  the  compe;;ve  market,  passed  in  1999.   –  The  Senate  and  the  Lieutenant  Governor  were  Republican,  but  the  House  was  s;ll   majority  Democrat.  The  House  sponsor  and  author  of  the  bill  and  the  House  Speaker   in  1999  were  both  Democrats.   –  Senate  Bill  7  passed  the  House  with  a  vote  of  144  Ayes  and  4  Nays.   •  It  was  a  bipar;san  measure:  74  of  the  Aye  votes  were  from  Democrats,  while   68  were  from  Republicans.   –  The  bill  passed  the  Senate  with  a  vote  of  28  Ayes  and  3  nays.  
  69. 69. 69     •  Senate  Bill  No.  373  enacted  in  May  1995   –  Required  u;li;es  to  provide  non-­‐discriminatory  open  access  transmission  to   support  wholesale  compe;;on  in  ERCOT.   –  Recognized  new,  unregulated  par;cipants  in  ERCOT  wholesale  market.   §  Exempt  wholesale  generators   §  Power  marketers   –  Allowed  non-­‐u;lity  wholesale  market  par;cipants  to  offer  market-­‐based  prices  in   ERCOT.   –  Deregulated  electric  coopera;ve  distribu;on  rates.    Note:  Non-­‐ERCOT  areas  are  subject  to  FERC  jurisdic+on  for  wholesale  services,  including   transmission  services.   Steps  to  Compe;;on:   Wholesale  Compe;;on  
  70. 70. 70   •  ERCOT  market  restructuring  legislaLon,  Senate  Bill  7,  passed  in  1999   –  Ini;ated  compe;;on  in  ERCOT  retail  markets  beginning  January  2002.   –  Municipally-­‐owned  u;li;es  and  electric  coopera;ves  allowed  to  “opt-­‐in”.   –  Included  environmental  and  energy  efficiency  provisions.   •  Required  reduc;on  of  nitrogen  oxide  (NOx)  emissions  from  older  power  plants  by  50%,  and   sulfur  dioxide  emission  from  coal-­‐fired  facili;es  by  25%.   •  U;li;es  required  to  fund  energy  efficiency  programs  equal  to  at  least  10%  of  each  year’s   annual  growth  in  demand.   –  1999  -­‐  2001  –  Prepara;on  for  retail  compe;;on.   •  Electricity  rates  frozen.   •  ERCOT  develops  systems  required  to  support  compe;;on.   •  PUC  promulgates  compe;;on  rules.   •  PUC  determines  rate  unbundling  cases.   –  July  2001  –  Retail  compe;;on  pilot  project  begins.   Steps  to  Compe;;on:   Retail  Compe;;on  
  71. 71. 71   Steps  to  Compe;;on:   Transi;on  Period   •  January  2002-­‐2006  TransiLon  Period   –  “Affiliated”  generators   •  Required  to  make  15%  of  their  power  available  to  non-­‐affiliated  retail  providers   •  During  first  two  years,  limited  to  guaranteed  market  price  for  power  as  projected  by  PUC   •  Given  incen;ves  to  install  environmental  clean-­‐up  equipment   –  Transmission  and  Distribu;on  U;li;es   •  Ini;al  rates  set  using  es;mated/generic  costs   •  Recovery  of  stranded  and  other  transi;on  costs  authorized  but  delayed  un;l  2004  True-­‐up   proceeding   –  Securi;za;on  bonds  lower  cost  to  customers   –  “Affiliated”  retail  electric  providers   •  Required  to  lower  base  rates  by  six  percent  (Price  to  Beat)   –  Adjustable  only  for  increases  in  natural  gas  prices   –  Price  to  Beat  remains  in  place  un;l  12-­‐31-­‐06   •  No  price  compe;;on  allowed  in  former  service  area  un;l  2005  
  72. 72. 72   •  Incumbents  required  to  separate  business  acLviLes  into  the  following  units.   –  Power  genera;on  company.   –  Retail  electric  provider.   –  Transmission  and  distribu;on  u;lity.   •  GeneraLon  and  retail  businesses  are  not  regulated  uLliLes.   –  Power  Genera;on  Companies  must  be  registered  with  PUC.   –  Retail  Electric  Providers  must  be  cer;fied  by  PUC.   •  Transmission  and  distribuLon  businesses  remain  regulated  uLliLes.   •  Methods  for  separaLon  of  business  acLviLes.   –  Crea;on  of  separate  non-­‐affiliated  companies.   –  Crea;on  of  separate  affiliated  companies  owned  by  a  common  holding  company.   –  Sale  of  assets  to  a  third  party.   •  Each  ERCOT  uLlity  chose  different  models.   •  Code  of  conduct  rules  enforce  separaLon  requirements.   Structural  Unbundling  
  73. 73. 73   Appendix  B:   AECT  Member  Companies  
  74. 74. 74   American  Electric  Power   Electric  U+lity   AEP  Texas  is  connected  to  and  serves  more  than  a  million   electric  consumers  in  the  deregulated  Texas  marketplace.   As  an  energy  delivery  company,  AEP  Texas  delivers   electricity  safely  and  reliably  to  homes,  businesses  and   industry  across  its  nearly  100,000  square  mile  service   territory  in  south  and  west  Texas.   Southwestern  Electric  Power  Company,  headquartered  in   Shreveport,  LA,  serves  460,000  customers  in  East  Texas   and  the  Texas  Panhandle,  Northwest  Louisiana,  and  the   western  edge  of  Arkansas.  SWEPCO  has  been  providing   low-­‐cost,  reliable  electricity  to  customers  since  1912.   SWEPCO  is  a  ver;cally  integrated  company  opera;ng  as  a   member  of  the  Southwest  Power  Pool.   Service  Territory  Shown  in  Gold   Service  Territory  Shown  in  Dark  Red  
  75. 75. 75   CenterPoint  Energy   Transmission  &  Distribu+on  U+lity   CenterPoint  Energy  maintains  the  wires,   poles  and  electric  infrastructure  serving  its   5,000-­‐square-­‐mile  electric  service  territory   in  the  Houston  metropolitan  area.   CenterPoint  Energy  ensures  the  reliable   delivery  of  power  to  2.2  million  metered   homes  and  businesses,  but  does  not   generate  power  or  sell  it  to  customers.    
  76. 76. 76   Constella;on  and  StarTex  Power   Retail  Services     Constella;on’s  retail  companies  serve  more  than   two-­‐thirds  of  the  Fortune  100,  approximately   100,000  business  and  public-­‐sector  customers   and  approximately  1  million  residen;al  customers   across  the  na;on.  Constella;on’s  retail  brands   include  Constella;on  NewEnergy,  Division,  StarTex   Power  and  BGE  Constella;on  NewEnergy  –  Gas   HOME.  In  Texas,  Constella;on’s  retail  en;;es   serve  over  150,000  residen;al  and  business   customers.     Compe++ve  Areas  of  Texas  
  77. 77. 77   El  Paso  Electric  Company   Ver+cally  Integrated  U+lity   El  Paso  Electric  is  a  ver;cally  integrated   u;lity  serving  approximately  396,000   customers  in  the  Rio  Grande  Valley  in  west   Texas  and  southern  New  Mexico.  El  Paso   Electric  is  an  opera;ng  member  of  the   Western  Electricity  Coordina;ng  Council.    
  78. 78. 78   Entergy  Texas   Ver+cally  Integrated  U+lity   The  Entergy  Texas  service  area  starts  at  the   southeast  Texas/Louisiana  border  and   stretches  up  into  the  piney  woods  of  east   Texas,  down  to  the  Gulf  of  Mexico  and   across  to  the  lake  country  north  of  Houston.   Entergy  Texas  serves  approximately  426,000   customers  in  26  coun;es.    
  79. 79. 79   Exelon  Genera;on   Electric  Genera+on  Company   Corpora;on  is  the  na;on’s  leading   compe;;ve  energy  provider  and  is  one  of   the  largest  compe;;ve  U.S.  power   generators,  with  more  than  35,000   megawaTs  of  owned  capacity  comprising   one  of  the  na;on’s  cleanest  and  lowest-­‐cost   power  genera;on  fleets.  The  company   maintains  strong  posi;ons  in  the  Midwest   and  Mid-­‐Atlan;c  regions.  In  Texas,  it  owns   and  controls  about  4,400  MW  of  natural   gas-­‐fired  and  wind  genera;on,  with  plants   in  Dallas,  Fort  Worth,  Granbury,  LaPorte,   and  Wharton.    
  80. 80. 80   GDF  SUEZ   Electric  Genera+on  Company   •  North  American  headquarters  in   Houston,  TX   •  GDF  SUEZ  employs  ~2,300  people  across     opera;ons  in  Canada,  US  &  Mexico   •  Over  4,000  MW  of  power  genera;on  in  Texas   in  Wise,  Ellis,  Hays,  Goliad  and  Wharton   coun;es.      13,000+  MW  na;onwide   •  4th  largest  retail  provider  to  C&I  customers   o  Serving  approximately  C&I  60,000   accounts    in  12  markets  and  serving  over   50%  of  the  Fortune  100   o  Retail  brands  are  ThinkEnergy  &  GDF  SUEZ   Energy  Resources  
  81. 81. 81   Lone  Star  Transmission   Transmission  Company   Lone  Star  Transmission,  LLC,  is  a  rate-­‐ regulated  transmission  service  provider  in   Texas  that  owns  and  operates   approximately  330  miles  of  high-­‐voltage   transmission  lines  and  associated   equipment.  Lone  Star's  transmission   facili;es  stretch  from  Scurry  County,   northwest  of  Abilene,  to  Navarro  County,   just  south  of  Dallas.    Lone  Star’s  facili;es   were  added  as  part  of  the  Compe;;ve   Renewable  Energy  (CREZ)  program  in   Texas,  but  today  they  enhance  the  safe  and   reliable  transmission  of  electricity  from  all   genera;on  sources.  
  82. 82. 82   Luminant   Electric  Genera+on  Company   Luminant  is  a  compe;;ve  power   genera;on  business,  including  mining,   wholesale  marke;ng  and  trading,  and   development  opera;ons.  Luminant  has   more  than  15,400  megawaTs  of  genera;on   in  Texas,  including  2,300  MW  fueled  by   nuclear  power  and  8,000  MW  fueled  by   coal.  The  company  is  also  a  large  purchaser   of  wind-­‐generated  electricity.  
  83. 83. 83   NextEra   Electric  Genera+on  Company   NextEra  Energy  Resource  owns  an   extremely  diverse  porxolio  of  nearly   18,000  MW  of  genera;on  na;onwide,   including  wind,  solar,  hydro,  natural  gas,   and  nuclear  power.  In  Texas,  NextEra’s   footprint  includes  5,243  MW  of   genera;on,  including  two  combined-­‐cycle   natural  gas  plants  and  15  wind  facili;es.      
  84. 84. 84   NRG  Energy   Electric  Genera+on  Company   NRG  is  the  na;on’s  largest  compe;;ve   power  generator  with  over  52,000  MW  of   fossil  fuel,  nuclear,  solar  and  wind  capacity   across  the  country.    Approximately  24%  of   NRG’s  total  genera;on  is  in  Texas,  making   NRG  Texas  the  second  largest  power   generator  in  the  State.    Our  diverse   porxolio  -­‐-­‐  52%  natural  gas,  9%  nuclear,  6%   wind  and  33%  coal  -­‐-­‐  is  located  in  13   coun;es  across  Texas.      
  85. 85. 85   Oncor   Transmission  &  Distribu+on  U+lity   Oncor  is  a  regulated  electric  distribu;on   and  transmission  business  that  delivers   reliable  electricity  to  consumers.  Oncor   operates  the  largest  distribu;on  and   transmission  system  in  Texas,  providing   power  to  more  than  3  million  electric   delivery  points  over  more  than  115,000   miles  of  transmission  and  distribu;on  lines.  
  86. 86. 86   Reliant,  Green  Mountain  and     Cirro  Energy   Retail  Services   Compe++ve  Areas  of  Texas   Based  in  Houston,  NRG  provides   comprehensive  solu;ons  to  meet   consumers’  needs  through  our  retail   electricity  brands,  residen;al  solar  offerings   and  innova;ve  consumer  products  and   services  to  1.9  million  customers  across  the   state.    
  87. 87. 87   Texas-­‐New  Mexico  Power  Co.   Transmission  &  Distribu+on  U+lity   TNMP  provides  electric  service  to  236,000   customers  throughout  Texas.  TNMP  is   owned  by  PNM  Resources,  an  energy   holding  company  based  in  Albuquerque,   New  Mexico.  
  88. 88. 88   TXU  Energy   Retail  Electric  Provider   TXU  Energy  is  a  market-­‐leading  retail   electric  provider,  powering  the  lives  of   more  Texans  than  any  other  retailer.  TXU   Energy  offers  a  variety  of  innova;ve   products  and  solu;ons,  allowing  its   residen;al  and  business  customers  to   choose  op;ons  that  best  meet  their  needs   including  excep;onal  customer  service,   compe;;vely  priced  electricity  service   plans,  innova;ve  energy  efficiency  op;ons,   renewable  energy  programs  and  other   electricity-­‐related  products  and  services.   Compe++ve  Areas  of  Texas  
  89. 89. 89   Xcel  Energy   Ver+cally  Integrated  U+lity   Xcel  Energy  owns  Southwestern  Public   Service  Company,  a  regional  electric  u;lity   that  provides  service  to  about  383,000   persons  in  a  52,000  square-­‐mile  area   comprised  of  the  South  Plains  and   Panhandle  of  Texas,  and  eastern  New   Mexico.  
  90. 90. 90    Web:            AECT.net        Twioer:            twioer.com/AECTnet        Facebook:    AECT  Advocacy        Email:            info@aect.net  

×