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The Retail Electric Market in ERCOT

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Information on electricity pricing and programs in the competitive retail electric market in ERCOT

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The Retail Electric Market in ERCOT

  1. 1. Legislative Advertising Paid For by: Association of Electric Companiesof Texas 1005Congress, Suite 1000,Austin, TX 78701 •512-474-6725• www.aect.net 2019 The Retail ElectricMarket in ERCOT
  2. 2. AECT Companiesin the CompetitiveRetailMarket www.aect.net (512) 474-6725 2 Areas of Texas Open to Retail Competition AECT Members’ Retail Electric Providers
  3. 3. Steps to Electric Competitionin Texas www.aect.net (512) 474-6725 3 Wholesale competition legislation passed (SB 373) May 1995 Jan. 2002 Retail competition legislation 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 Retail choice begins in ERCOT Jan. 2007 End of price-to- beat
  4. 4. ERCOT Roles and Responsibilities www.aect.net (512) 474-6725 4 ERCOT: By the Numbers • 90% of the electric load in Texas is in ERCOT • 75% of ERCOT’s load is in the competitive market, including 7 million meters • Over 550 generating units, providing 77,000 MW of generating capacity during peak demand • 46,500 miles of high-voltage transmission ERCOT Responsibilities • System reliability – planning and operations • Wholesale market settlement for electricity production and delivery • Retail switching process for customer choice • Open access to transmission ERCOT region
  5. 5. SB7 Created a Robust and CompetitiveMarket www.aect.net (512) 474-6725 5
  6. 6. The Role of ERCOT in the RetailMarket www.aect.net (512) 474-6725 6 ERCOT Coordinates Among Stakeholders to Support Customer Switching Transactions
  7. 7. Texasis Hot! www.aect.net (512) 474-6725 7 On average, Texas residential customers use DOUBLE the electricity of California residential customers every month. Source: EIA
  8. 8. TexasLeadsU.S. Job Growth www.aect.net (512) 474-6725 8 Texas 2,180,000 California 810,000 North Carolina 340,000 New York 550,000 Washington 320,000 Job Growth by State: 2004-2014 Source: State Demographer, Texas Demographic Center
  9. 9. Australia Spain Italy Texas United Kingdom South Korea Brazil France India Canada Germany Russia Japan China United States Big State, BigConsumption www.aect.net (512) 474-6725 9 Source: EIA
  10. 10. Robust SmartMeter Infrastructure Driving Innovation and Engagement www.aect.net (512) 474-6725 10
  11. 11. Texasis HighlyCompetitive www.aect.net (512) 474-6725 11 5 Regions 7 Million Meters 50+ Competitors 300+ Plans per region
  12. 12. The Customer-Led Mandate www.aect.net (512) 474-6725 12 Choice Convenience Control
  13. 13. Data highlighting the growth and success of retail shopping inERCOT Benefits of the CompetitiveElectric Market
  14. 14. Lower Prices AvailableToday than BeforeCompetition Began www.aect.net (512) 474-6725 14 Service Area Average Fixed-Price Offer (12-month term) Lowest Fixed-Price Offer (12-month term) Lowest Offer Available Dec. 2001 prices, not adjusted for inflation Dec. 2001 prices, adjusted for inflation AEP Texas Central 12.5¢/kWh 6.3¢/kWh 6.1¢/kWh 9.6¢/kWh 13.7¢/kWh AEP Texas North 12.1¢/kWh 5.9¢/kWh 5.5¢/kWh 10.0¢/kWh 14.3¢/kWh CenterPoint Energy 11.9¢/kWh 5.6¢/kWh 5.5¢/kWh 10.4¢/kWh 14.9¢/kWh Oncor 11.1¢/kWh 4.5¢/kWh 4.5¢/kWh 9.7¢/kWh 13.9¢/kWh TNMP 12.1¢/kWh 6.2¢/kWh 5.8¢/kWh 10.6¢/kWh 15.2¢/kWh Sources: PUC Historical Data, Bureau of Labor Statistics Inflation Calculator (43.1% inflation since December 2001); www.powertochoose.org offers as of December 3, 2018 December 2018 December 2001
  15. 15. Electric Price Offers Compared WithOther Retail Products www.aect.net (512) 474-6725 15 Sources: Dec 2001 electric rates: Public Utility Commission of Texas; October 2018 electric rates: Power to Choose for 1,000 kWh/usage with no usage fees or credits; All other data: U.S. Bureau of Labor Statistics (October data; latest available) Gallon of Gas 155% Ground Beef 117% Dozen Eggs 79% Hourly Legal Services 77% Houston-Galveston Rent 64% Dallas-Fort Worth Rent 57% U.S. Average Residential Electricity 51% Ground Coffee 47% Loaf of White Bread 27% Gallon of Milk 1% ERCOT Average Lowest Variable Offer -1% ERCOT Average Lowest 1-Year Fixed Price Offer -51% Price Change: December 2001 to October 2018
  16. 16. Texans Continue to shop in the CompetitiveMarket www.aect.net (512) 474-6725 16 Customer Activity in the Market, Including Move-Ins and Switches Source: ERCOT, Supplemental Information: Retail Electric Market, December 2017-December 2018
  17. 17. Electricity Complaintsare Down Over 60% from 2008 www.aect.net (512) 474-6725 17 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 PUC Electric Complaints As the competitive market has matured, customer complaints have fallen, even despite a recent uptick, likely due to service restoration following Hurricane Harvey. Source: PUC Regulatory Compliance Services; includes all electric industry complaints.
  18. 18. How To Reach Us www.aect.net (512) 474-6725 33 For background on electric markets, environmental data and Electricity 101 Regular updates from AECT and its member companies Keep up with pictures and links to latest documents released by AECT AECT.net @aectnet AECT Advocacy on Facebook An easy way to receive updates from AECT TheAECT App

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