FREQUENTLY ASKED QUESTIONS


What is deregulation?
What will deregulation do?
Will I, as a Brownsville PUB customer, be able to choose my electric provider?
Can Brownsville PUB ever opt to compete in an open market?
Why are municipal utilities like Brownsville PUB treated differently?

What is deregulation?
On Jan. 1, 2002, Texas' investor-owned utilities, like CPL, began competing in an open market for electric customers. Senate Bill 7, signed into law in 1999, allows for exemptions for municipalities like Brownsville PUB and cooperatives like Magic Valley Electric Coop.

What will deregulation do?
It will allow Texas electric customers of investor-owned utilities, including residential and businesses, to choose which company to buy their electricity from.

Will I, as a Brownsville PUB customer, be able to choose my electric provider?
Brownsville PUB is municipally-owned to serve Brownsville and as part of the Deregulation Bill signed in 1999 by the state governor, we have a choice of opting into a competitive electric market. Brownsville has been divided into several different electric certification areas by the Public Utility Commission of Texas since 1976. There are many areas of Brownsville that are certified for more than one utility, which gives some customers the opportunity to choose their electric provider. If you live in an area that is currently serviced by more than one utility company, then you may be able to change to another provider. Otherwise, Brownsville PUB is taking a wait and see approach to deregulation because of market uncertainty. For more information, please call our office at 983-6121.

Can Brownsville PUB ever opt to compete in an open market?
Yes. Brownsville PUB can make a decision to jump into deregulation. But once it decides to opt into the retail competition, the decision cannot be reversed. Therefore, the board of directors is weighing all options at this time.

Why are municipal utilities like Brownsville PUB treated differently?
Customers of municipal utilities have control over the management of their utility because the decisions have always been made by their local boards or commissions. In the case of Brownsville PUB, our customers elect their city commissioners, who in turn appoint a board of directors for the utility company. Therefore, the board is held accountable by citizens to do what is in their best interest. Traditionally, municipals, like us have lower utility rates than investor-owned utilities.