Electrical Deregulation - Planning for Success in Texas Schools

Beginning January 1, 2002, Texas' electricindustry is opening to customer choice, givingconsumers the power to choose the company thatprovides their electricity. Under electricalderegulation in Texas, there are three separateplayers. The Retail Electric Provider (REP) marketspower to the consumer (public) and serves as thecustomer point of contact. The Power GenerationCompany generates the electricity and is alreadyderegulated. The transmission and distributionutilities (wires) remain regulated by the Public UtilityCommission of Texas (PUCT).As of the writing of this abstract in October 2001,REP's indicate that only about 15% of Texas ISD'shave taken any action.Ready or not pricing and purchasing methods ofelectricity in Texas will change. This paper discussesmajor deregulation issues in Texas Schools (e.g.procurement process, contracts, workloads,uncertainty. etc.). The before and after scenarios ofderegulation are compared. Texas Schools, to beprepared for success, need to understand their energyusage and patterns, district characteristics,deregulation options and pricing, andterms/conditions. This paper provides Texas Schoolswith specific homework, electrical deregulationoptions, procurement process, and RFP guidelines.Owning the fine print is as essential as terms andconditions and may be as important as the price.Examples will be included. The decision makingprocess for all size school districts will be discussed.The experience of the authors in assisting Texasschool districts in this process will be shared. Afterderegulation, homework will also be addressed.