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Legislative Advertising Paid For by: JuliaRathgeber, Association ofElectric Companies ofTexas
1005Congress, Suite 600,Aust...
AECT Companiesin the CompetitiveRetailMarket
www.aect.net (512) 474-6725
2
Areas of Texas Open to Retail Competition
AECT ...
Steps to Electric Competitionin Texas
www.aect.net (512) 474-6725
3
Wholesale
competition
legislation
passed (SB 373)
May
...
ERCOT Roles and Responsibilities
www.aect.net (512) 474-6725
4
ERCOT: By the Numbers
• 90% of the electric load in Texas i...
SB7 Created a Robust and CompetitiveMarket
www.aect.net (512) 474-6725
5
The Role of ERCOT in the RetailMarket
www.aect.net (512) 474-6725
6
ERCOT Coordinates Among Stakeholders to Support
Custom...
Texasis Hot!
www.aect.net (512) 474-6725
7
On average, Texas residential
customers use DOUBLE the
electricity of Californi...
TexasLeadsU.S. Job Growth
www.aect.net (512) 474-6725
8
Texas
2,180,000
California
810,000 North
Carolina
340,000
New York...
Australia
Spain
Italy
Texas
United Kingdom
South Korea
Brazil
France
India
Canada
Germany
Russia
Japan
China
United States...
Robust SmartMeter Infrastructure Driving Innovation and Engagement
www.aect.net (512) 474-6725
10
Texasis HighlyCompetitive
www.aect.net (512) 474-6725
11
6 Regions
7 Million Meters
60+ Competitors
300+ Plans per region
The Customer-Led Mandate
www.aect.net (512) 474-6725
12
Choice Convenience Control
Data highlighting the growth and success of retail shopping inERCOT
Benefits of the CompetitiveElectric Market
Customers have many low Offers Available
www.aect.net (512) 474-6725
14
Service Area
Average Fixed-Price
Offer
(12-month t...
Electric Price Offers Compared WithOther RetailProducts
www.aect.net (512) 474-6725
15
Sources: Dec 2001
electric rates: P...
The Number of Competitors and Offers HasIncreased
www.aect.net (512) 474-6725
16
Source: Public Utility Commission of Texa...
Texans are fully Engaged in the CompetitiveMarket
www.aect.net (512) 474-6725
17
Choice is available to 100% of the compet...
ElectricPriceComparisonto non-CompetitiveAreasin ERCOT
www.aect.net (512) 474-6725
18
(5) (10)
(20) (20) (18)
37
61 62 59
...
PUC ElectricityComplaints are Down 60% from 2008
www.aect.net (512) 474-6725
19
0
2,000
4,000
6,000
8,000
10,000
12,000
14...
How To Reach Us
www.aect.net (512) 474-6725
20
For background on electric
markets, environmental data and
Electricity 101
...
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The Retail Electric Market in ERCOT - 2017

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The history of the retail electric market in Texas, including innovations and performance

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The Retail Electric Market in ERCOT - 2017

  1. 1. Legislative Advertising Paid For by: JuliaRathgeber, Association ofElectric Companies ofTexas 1005Congress, Suite 600,Austin,TX 78701 • 512-474-6725• www.aect.net 2017 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 6 Regions 7 Million Meters 60+ 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. Customers have many low Offers Available www.aect.net (512) 474-6725 14 Service Area Average Fixed-Price Offer (12-month term, no usage fees/credits) Lowest Fixed-Price Offer (12-month term, no usage fees/credits) Lowest Variable Price Offer Available Dec. 2001 prices, not adjusted for inflation Dec. 2001 prices, adjusted for inflation AEP Texas Central 9.4¢/kWh 5.0¢/kWh 7.9¢/kWh 9.6¢/kWh 12.8¢/kWh AEP Texas North 9.4¢/kWh 5.6¢/kWh 7.9¢/kWh 10.0¢/kWh 13.3¢/kWh CenterPoint Energy 8.8¢/kWh 4.8¢/kWh 7.8¢/kWh 10.4¢/kWh 13.8¢/kWh Oncor 8.2¢/kWh 4.4¢/kWh 7.0¢/kWh 9.7¢/kWh 12.9¢/kWh TNMP 8.6¢/kWh 5.0¢/kWh 7.8¢/kWh 10.6¢/kWh 14.1¢/kWh Sources: PUC Historical Data, Bureau of Labor Statistics Inflation Calculator (33.0% inflation since December 2001); www.powertochoose.org offers as of January 2, 2017 January 2017 December 2001
  15. 15. Electric Price Offers Compared WithOther RetailProducts www.aect.net (512) 474-6725 15 Sources: Dec 2001 electric rates: Public Utility Commission of Texas; October 2016 electric rates: Power to Choose for 1,000 kWh/usage with no usage fees or credits; Average Residential Electricity: EIA (Dec 2001 and October 2016); All other data: U.S. Bureau of Labor Statistics Ground Beef 115% Gallon of Gas 98% Hourly Legal Services 66% Dozen Eggs 50% U.S. Average Residential Electricity 49% Houston-Galveston Rent 49% Ground Coffee 48% Loaf of White Bread 34% Dallas-Fort Worth Rent 28% Gallon of Milk 14% ERCOT Average Lowest Variable Offer -27% ERCOT Average Lowest 1-Year Fixed Price Offer -49% Price Change: December 2001 to October 2016
  16. 16. The Number of Competitors and Offers HasIncreased www.aect.net (512) 474-6725 16 Source: Public Utility Commission of Texas, www.powertochoose.org 2002 2009 2016 10 REPs 11 Offers 11 13 14 18 45 90 97 136 258 264 276 335 305 394 378 365 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 32 REPs 136 Offers 54 REPs 365 Offers # of Offers1 > 10 10 11 11 17 28 26 32 43 43 52 53 49 56 53 54# of REPs > 1. Number of residential offers in Oncor area at year-end
  17. 17. Texans are fully Engaged in the CompetitiveMarket www.aect.net (512) 474-6725 17 Choice is available to 100% of the competitive ERCOT market, and virtually all consumers have exercised their power to choose electric providers. ERCOT has processed ~42 million choice transactions (~6 per meter) since the market opened. Millions of transactions1 Move In Switches Transactions1 0 1 2 3 4 5 2001-2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1. ERCOT Monthly Retail Reports. 42m choice transactions ÷ ~7m competitive ERCOT meters = ~6 choice transactions per customer.
  18. 18. ElectricPriceComparisonto non-CompetitiveAreasin ERCOT www.aect.net (512) 474-6725 18 (5) (10) (20) (20) (18) 37 61 62 59 65 125 (50) (25) 0 25 50 75 100 125 Percent Change In Texas Residential Retail Electric Prices February 2002 – Q1 2016 (latest available consistent data)1 REPs in Competitive Areas Texas Co-opsTexas Munis Percent (%) 1 For residential customer using 1,000 kWh; depicts latest available consistent data for end points. From left to right: Competitive Areas – AEPC, AEPN, TNMP, ONCOR, CNP; Munis – Austin, San Marcos, CPS Energy; Co-ops – Victoria, Upshur Rural, Magic Valley. Competitive areas show percent change in average 12 month fixed offer. Sources: Public Utility Commission of Texas; www.powertochoose.org
  19. 19. PUC ElectricityComplaints are Down 60% from 2008 www.aect.net (512) 474-6725 19 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 PUC Electric Complaints As the competitive market has matured, customer complaints have fallen. REPs compete on customer service as well as price and other attributes, contributing to lower PUC complaints Source: Regulatory Compliance Services; includes all electric industry complaints.
  20. 20. How To Reach Us www.aect.net (512) 474-6725 20 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

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