DEREGULATION IN TEXAS

Electric deregulation began in Texas on January 1, 2002, for all private electric utilities, known as investor-owned utilities (IOUs). Electric cooperatives and city-owned electric utilities, like BPUB, have the option to either participate or stay out of the deregulated market.

For now, the BPUB Board of Directors believes the most prudent course is to “wait and see” how deregulation works.

To date, none of the 77 electric cooperatives or 73 city-owned electric utilities in the state are participating in deregulation, mainly because once the decision is made it cannot be reversed.

In reality, however, BPUB is already in competition. The utility competes for customers in many areas of the city certified as dually or triply served by the Public Utilities Commission of Texas.

In addition, BPUB participates in the competitive statewide wholesale market, which means that we sell and buy bulk electricity from other electric utilities.