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

1. The Retail Electric
Market in ERCOT
November 2020
Legislative advertising paid for by: Association of Electric Companies of Texas
1005 Congress, Suite 1000, Austin, TX 78701 • 512-474-6725 • www.aect.net

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AECT Companies in the Competitive Retail Market
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Retail Electric Providers
Areas of Texas Open to Retail Competition

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Steps to Electric Competition in Texas
Jan. 2007
Jan. 2005
Jan. 2002
July 2001
Sep. 1999
June 1999
May 1995
Wholesale
competition
legislation
passed (SB 373)
Retail
competition
legislation
passed (SB 7)
ERCOT
electric rates
frozen
Texas Choice
pilot program
begins
Retail choice
begins in
ERCOT
Affiliate REPs
allowed to
offer non-
price-to-beat
prices
End of
price-to-beat

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ERCOT Roles and Responsibilities
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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 24 million customers
• Over 680 generating units, providing 82,000
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

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SB7 Created a Robust and Competitive Market
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The Role of ERCOT in the Retail Market
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ERCOT Coordinates Among Stakeholders to Support
Customer Switching Transactions

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Texas is Hot!
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On average, Texas residential customers
use DOUBLE the electricity of California
residential customers every month.
Source: EIA

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Big State, Big Consumption
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Australia
Spain
Italy
Texas
United Kingdom
South Korea
Brazil
France
India
Canada
Germany
Russia
Japan
China
United States
Source: EIA

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Robust Advanced Meter Infrastructure Driving Innovation and
Engagement
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Texas is Highly Competitive
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5 Regions
7 Million Meters
50+ Competitors
180+ Plans per region

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The Customer-Led Mandate
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Choice Convenience Control

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Lower Prices Available Today Than Before Competition Began
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Sources: PUC Historical Data, Bureau of Labor Statistics Inflation Calculator (47.3% inflation since December 2001);
www.powertochoose.org offers as of October 1, 2020
Service Area
Average Fixed-Price
Offer
(12-month term)
Lowest Fixed-Price
Offer
(12-month term)
Dec. 2001 prices,
not adjusted for
inflation
Dec. 2001
prices, adjusted
for inflation
AEP Texas Central 11.0¢/kWh 6.6¢/kWh 9.6¢/kWh 13.7¢/kWh
AEP Texas North 10.1¢/kWh 6.4¢/kWh 10.0¢/kWh 14.7¢/kWh
CenterPoint
Energy 10.7¢/kWh 6.7¢/kWh 10.4¢/kWh 15.3¢/kWh
Oncor 10.2¢/kWh 6.1¢/kWh 9.7¢/kWh 14.3¢/kWh
TNMP 12.1¢/kWh 8.2¢/kWh 10.6¢/kWh 15.6¢/kWh
October 2020 December 2001

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Electric Price Offers Compared With Other Retail Products
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Sources: Dec 2001 electric
rates: Public Utility
Commission of Texas;
September 2020 electric
rates: Power to Choose for
1,000 kWh/usage; All other
data: U.S. Bureau of Labor
Statistics (September data;
latest available)
Price Change: December 2001 to September 2020
Ground Beef 108%
Gallon of Gas 105%
Legal Services 80%
Dallas-Fort Worth Rent 69%
Houston Area Rent 68%
U.S. Average Residential Electricity 62%
Dozen Eggs 52%
Ground Coffee 36%
Gallon of Milk 33%
Loaf of White Bread 18%
ERCOT Average Lowest Variable Offer -18%
ERCOT Average Lowest 1-Year Fixed Price Offer -45%

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Texans Continue to Shop in the Competitive Market
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Customer Activity in the Market, Including Move-Ins and Switches
Source: ERCOT, Supplemental Information: Retail Electric Market, December
2017-December 2018

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Electricity Complaints are Down Over 65% from 2009
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PUC Electric Complaints
As the competitive market has matured, customer complaints have
fallen, with occasional upticks likely due to disruptions caused by
natural disasters
Source: PUC Regulatory Compliance Services; includes all electric industry complaints.

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How to Reach Us
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AECT.net
@aectnet
AECT Advocacy
The AECT App