Senate Bill 7, legislation requiring electricity marketcompetition in Texas as of Jan. 1, 2002, passed the state SenateFriday, leaving the Governor’s signature as the missing piece ofthe puzzle before the bill becomes law. Governor George W. Bush hasnot said when he will sign the Sen. David Sibley (R-Waco)-sponsoredbill, but has voiced his support.

Sibley said deregulation would save consumers between $500million and $800 million even if they don’t switch suppliers sincelegislation calls for a 5% rate cut when it takes effect. Strandedcost recovery is prescribed through securitization with bond debtbeing repaid through a transmission surcharge. A similar billfailed to pass the Senate two years ago.

“This is a comprehensive plan that will be good for Texasconsumers,” declared Ray Palmer, president of NEV Texas, New EnergyVenture’s subsidiary serving the state. Arizona-based New EnergyVentures is a technology-based energy partnership between UniSourceEnergy Corp. and New Energy Holdings. “This plan will ensure lowerelectric costs for residential consumers and create additionalsavings for those who exercise their option to choose an energyservice provider.”

The Competitive Power Advocates (CPA), a group of generators,marketers and users of electricity in wholesale and retail marketsacross the country also applauded the bill’s passage. “The craftingof this legislation was a complex undertaking, with a lot ofdiverse interests coming together,” said James A. Tramuto, the CPAchairman.

The bill leaves many specific decisions for the structure of thecompetitive market to the state’s PUC. “The legislation has giventhe PUC a strong framework around which to design and implementmany of the specifics of the competitive market,” Palmer said,”such as the actual level of the `price to beat’ and the operatingrules and codes of conduct for market participants.”

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