Latest statistics related to the competitive retail electric market in ERCOT.

1. Electricity 101:
Retail Update
October 27, 2011!
Legislative advertising paid for by: John W. Fainter, Jr. • President and CEO Association of Electric Companies of Texas, Inc.
1005 Congress, Suite 600 • Austin, TX 78701 • phone 512-474-6725 • fax 512-474-9670 • www.aect.net

2. AECT Principles!
• AECT is an advocacy group composed of member companies committed to:
- Ensuring a modern, reliable infrastructure for the supply & delivery of
electricity.
- Supporting efficient competitive markets that are fair to customers and
market participants.
- Supporting consistent and predictable oversight and regulation that will
promote investment and ensure the stability of Texas’ electric industry.
- Promoting an economically strong and environmentally healthy future for
Texas, including conservation and efficient use of available resources.
• AECT member companies remain dedicated to providing Texas customers with
reliable service and are committed to the highest standards of integrity.
The Association of Electric Companies of Texas, Inc. (AECT) is a trade organization of investor-
owned electric companies in Texas. Organized in 1978, AECT provides a forum for member
company representatives to exchange information about public policy, and to communicate with
government officials and the public. For more information, visit www.aect.net.
2

3. AECT Member Companies!
Within ERCOT!
Retail Electric Providers
Transmission and Distribution Utilities
Generation Companies
3

4. AECT Companies!
Outside of ERCOT!
SERC Reliability Corporation
Southwest Power Pool (SPP)
Western Electricity Coordinating
Council (WECC)
4

5. The ERCOT Competitive Retail Electric
Market is Providing Strong Customer
Benefits!
Key Takeaways
– Price offers are lower than they were one year ago, and, when adjusted for
inflation, substantially lower than prices available just before competition
began.
– Retail electric price offers have improved, despite the increased price of
energy commodities, such as gasoline, crude oil, natural gas and coal.
– Among states, like Texas, that depend heavily on natural gas for power
generation, Texas prices compare favorably, with even lower prices available
to those in the competitive market.
– From January 2006 to July 2011, the average fixed offer price in the
competitive market has fallen by 33 percent, while the average U.S. electric
price outside Texas has risen by 21 percent.
– The System Benefit Fund (SBF) provided benefits for low-income Texans
during the summer. Several retailers, including AECT member companies,
also offer additional low-income customer assistance programs, so customers
should also contact their REP to learn more about the options that might be
available to them.
5

6. Competitive Market Bringing
Sustained Lower Price Offers
Prices in the
competitive
market have
remain low
over the
past year
Source: www.powertochoose.org; prices are a simple average among service territories. 6

7. Lower Prices Available Today than
Before Competition Began
Sources: PUC Historical Data, Bureau of Labor and Statistics, www.powertochoose.org offers as of October 27, 2011 7

8. Competitive Residential Electric Price Offers !
Have Fallen Since Just Before Full
Competition Began in January 2007!
Texas-New Mexico Power Co.
AEP Texas North
Service Territory
Service Territory
Change in Average
Change in Average
1yr Fixed-Price Offer: 1yr Fixed-Price Offer:
35% decrease 29% decrease
Oncor
Service Territory
Change in Average
1yr Fixed-Price Offer:
37% decrease
CenterPoint Energy
Service Territory
AEP Texas Central Change in Average
Service Territory 1yr Fixed-Price Offer:
35% decrease
Change in Average
1yr Fixed-Price Offer:
39% decrease
Since December 2006, competitive price offers for
residential customers have fallen in every service area.
Source: http://www.powertochoose.org (12/31/06 & 10/27/11) 8

9. Texasʼ National Price Ranking Has
Improved Since 2001
18
2001 State Ranking (Pre-Competition)
16
¢/kWh
14
12
10
8
6
4
2
0
KY
WA
WV
WY
MT
MO
OK
MS
GA
VA
WI
MI
AZ
IA
TX
PA
AK
MA
VT
ME
ID
OR
TN
NE
UT
IN
AL
SD
CO
MN
KS
MD
SC
AR
LA
OH
FL
DE
IL
NM
NV
NJ
CT
CA
RI
NY
HI
ND
DC
NC
NH
July 2011 State Ranking (Latest Available)
Average lowest Average lowest 12-
available offer in month fixed price
competitive offer in competitive
market in market in
July 2011: July 2011:
5.1/kWh 8.8¢/kWh
¢/kWh
Source: EIA average annual residential rates for 2001 and July 2011 monthly data (latest available information). Average lowest available price from
powertochoose.org Web site as of 7/30/11 for a residential customer using an average of 1,000 kWh per month.
9

10. Every Competitive Area in ERCOT Has
Variable and 1-Year Lock Offers Available
that are Lower than the National Average Price
Sources: PowerToChoose.org offers as of July 30, 2011,
U.S. Energy Information Administration, latest available data
10

11. Texas Generation Mix Compared to U.S.
Average!
Texas U.S. Average
Renewable
Petroleum Other (Mostly Petroleum)
Energy (MWh)
(Mostly Wind) Renewable
5.6% (Mostly Hydro) 0.9%
0.4%
Natural Gas
Nuclear 10.1%
10.5% 23.3%
Nuclear
47.6% 20.2%
35.0%
Natural Gas
44.5%
Coal
Coal
Renewable
Petroleum Other (Mostly
Summer Capacity (MW)
(Mostly Wind)
9.9% Petroleum)
7.7% Natural Gas
Nuclear 4.8% 0.2%
Renewable
(Mostly Hydro)
12.4%
39.1%
19.7% Nuclear 9.9%
Coal
64.9%
30.7%
Natural Gas
Coal
Note: Numbers may not add up to 100% due to rounding.
Source: EIA (2009 Data) 11

12. Texas Market Compares Favorably to Other
States Utilizing Natural Gas as the Primary
Generation Source!
Average Lowest Available 12-
Month Fixed Price Offer in
ERCOT Competitive Market
(July 2011): 8.8¢/kWh
Sources: Energy Information Administration (data as of July 2011); EIA natural gas-intensive states;
powertochoose.org as of 7/30/11.
Note: Texas statewide average price includes prices from both competitive and regulated areas of the state.
12

13. Since January 2007, Texasʼ Prices Have
Fallen While Others Have Risen
Residential Price Changes (%) - Jan 2007 - July 2011
70
Restructured
60 States
US Average (excl. TX)
50 (excl. TX) 22%
21%
40
Gas-Dependent
States (excl. TX)
30 5%
20 Texas
-6%
10
0
ME
NH
AR
MS
NC
US (-TX)
OR
DC
NJ
MN
MD
OH
ND
NV
DE
NY
SC
KY
SD
KS
NE
TX Competitive
TX Statewide
RI
IN
ID
HI
Natural Gas States (-TX)
CT
UT
AL
TN
AZ
VT
WA
WY
WV
MO
Restructured States (-TX)
IL
FL
WI
MA
NM
CO
OK
GA
MI
CA
MT
AK
IA
LA
PA
VA
-10
Lowest Competitive
-20 Offer Prices in Texas
-34%
-30
Source: EIA average annual residential rates for January 2007 and July 2011 (latest available data), powertochoose.org for
January 2, 2007 and July 30. 2011 13

14. Benefits for Qualified!
Customers: REP Programs!
• Several retail electric providers across the state also provide additional, voluntary
programs to assist low-income customers.
– The Care to Share Fund provides bill payment assistance to eligible First Choice Power residential
customers in need of emergency funding. Customers can donate to the Care to Share Fund and assist
residential customers who need a little extra help.
– In 2011, nearly $800,000 in bill payment assistance was committed to Reliant's CARE program. Non-
profit social service agencies review customer cases and qualify customers CARE funds based upon
the agency's designated hardship criteria. In addition, more than a dozen Beat the Heat Centers were
offered by Reliant in Corpus Christi, Dallas and Houston to provide heat relief in high-need areas.
– Below is information on several programs offered by TXU Energy.
– TXU Energy operates TXU Energy Aid, the largest bill-payment assistance program among
electricity companies in the nation. The company committed $25 million over 5 years (through
2012) to this program which has helped over 390,000 Texas families since 1983.
– TXU Energy also works collaboratively with ~1,000 agencies across the state to assist customers
in need.
– In addition, TXU Energy uniquely provides a self-funded, year-round low-income customer
discount of ~10 percent. The company committed $125 million over 5 years (through 2012) for
this program which assisted over 150,000 customers this summer. Since 2008, the company
has also helped 18,000 low income households reduce their energy consumption through grants
invested in energy efficiency improvements.
– Since September 2006, several REPs have participated in the low-income credit program resulting from
CenterPoint Energy’s 2006 rate case settlement. This program is currently providing a credit of $7.68
per month to eligible customers.
• Texans can check their electric provider’s Web site or call their provider to see
what other programs are available. 14

15. Web: AECT.net
Blog: AECTnet.wordpress.com
Twitter: twitter.com/AECTnet
Facebook: Association of Electric Companies of
Texas, Inc.
Email: info@aect.net
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