Electric Competition: Four Years of Cost Savings and Economic Benefits for Texas and Texans

Transcription

1 Electric Competition: Four Years of Cost Savings and Economic Benefits for Texas and Texans The Perryman Group 510 North Valley Mills Drive, Suite 300 Waco, Texas ph , fax April 2006

2 Electric Competition: Four Years of Cost Savings and Economic Benefits for Texas and Texans Introduction Four years of competition in the retail market for electricity have brought substantial savings to Texans. Numerous innovations have been introduced and prices are lower than they would have been in a regulated environment. Market forces are having the desired effects of providing consumers with more control and more choices at prices lower than they would have been under regulation. At the same time, substantial emission reductions have occurred, and notable gains in alternative energy development have been realized. The Perryman Group s analysis of the impact of cost savings from retail electric competition on business activity indicates an annual stimulus to the Texas economy of some $9.73 billion in Total Expenditures, $4.64 billion in gross product, and almost 47,800 permanent jobs. The magnitude of these impacts is clearly notable even in an economy the size of Texas. In fact, the stimulus (in terms of the numbers of jobs added) is significantly more than five times that of the initial phase of the high-profile Toyota manufacturing facility in San Antonio (including multiplier effects) and more than 10 times as large as the job gains for the Texas Instruments 300mm wafer-fabrication facility in Richardson (including multiplier effects). These results, together with the 1 perrymangroup.com

3 impact of facility construction, are described more fully in the Results section of this report. Although the process of opening electric markets to competition has met with challenges in many states, Texas has clearly avoided the most serious of these problems. Even with the highly publicized instances of difficulties with the transition to competition in states such as California and New Jersey, the overall impact of the move to competition has been positive. A recent study by Cambridge Energy Research Associates (CERA) indicates that US residential electric customers paid about $34 billion less for electricity over the past seven years than they would have in a regulated environment. 1 The largest portion of these savings occurred in the South, where Texas is one of the few states (and by far the largest) with comprehensive measures in place. In Texas, direct savings are in the billions of dollars, and steadily increasing each year. Since Senate Bill 7 (SB7), which was enacted by the Texas Legislature in 1999, introduced competition into the Texas retail market for electricity beginning on January 1, 2002, healthy competition has led to advances in many areas including the following. More than 2 million electricity customer switches have been completed, and, according to the Electric Reliability Council of Texas (ERCOT), competitive retail electric providers (REPs) provide electricity for over 29% of residential customers representing 37% of the residential 1 Special Report: Beyond the Crossroads The Future Direction of Power Industry Restructuring, CERA, 2 perrymangroup.com

4 load and almost 32% of small commercial customers representing more than 75% of the small commercial load. 2 Competition is providing significant savings compared to the estimated regulated electricity rates that would likely exist for the areas open to competition in Texas. For customers in the TXU Energy delivery service area, the best competitive price was 16% lower than the estimated regulated price in For customers in the CenterPoint Energy service area, the best competitive price was 24% below the estimated regulated price in Each year since the onset of retail electric competition ( ), the Price to Beat (PTB), a temporary rate charged by incumbents to residential and small commercial customers in order to foster market entry, has been below the estimated regulated price. For example, in the TXU Energy delivery service area, the Price to Beat has averaged almost 5.7% below the estimated regulated price. And in the CenterPoint Energy service area, the Price to Beat has averaged 13.7% below the estimated regulated price. 4 A residential customer in the Houston area who switched to a competitive REP in January 2002 would have saved $1,440 compared to the estimated regulated price and $640 compared to the PTB rate over a four-year period. A residential customer in the Dallas area would have 2 Number of Premises Switched and Estimated Load, March 14, 2006, Electric Reliability Council of Texas, 3 Legislative Report, Project No , Public Utility Commission of Texas, March 3, perrymangroup.com

5 saved over $800 compared to the estimated regulated price and more than $540 compared to the PTB rate under the same scenario. 5 According to the Energy Information Administration, since opening electricity markets to competition in 2002, average natural gas prices for the electric power sector have risen 268%. During this same period, the weighted average residential electricity PTB has risen by about 85%, while the corresponding lowest competitive offer has risen by only 69%. The differential between the rise in gas prices and that observed in electricity rates has been even larger at various points in time since the onset of retail competition. 6 Because Texas power plants are predominantly natural gas-fired, the price of electricity is highly correlated with the price of natural gas. This has led to greater price escalation for electricity in Texas than in areas less oriented toward natural gas. However, competitive electricity prices have risen more slowly and, in fact, are well below those that are estimated had the regulated market environment remained in the relevant areas. Some commentators have suggested that the increase in prices in Texas indicates a lack of success of the competitive mechanisms. This assertion is simply wrong. Electric rates have always varied across areas 4 Legislative Report, Project No , Public Utility Commission of Texas, March 3, Legislative Report, Project No , Public Utility Commission of Texas, March 3, Public Utility Commission of Texas Costing and Pricing Section Electric Division Retail Electric Service Rate Comparisons, Public Utility Commission of Texas, Public Utility Commission of Texas Retail Market Oversight Section Electric Division Retail Electric Service Rate Comparisons, Public Utility Commission of Texas, and 4 perrymangroup.com

6 depending on fuel costs, capital costs, and numerous other factors. The pertinent issues are whether prices are lower and choices are greater than they would have been in the absence of competition. By that standard, Texas has by far the most successful program in the US. Economic studies on the restructuring of the electrical power industry have concluded that competition has resulted in lower electricity rates for most customers than if the industry would have remained regulated. 7 Residential customers in Texas competitive markets have many choices of electricity providers including at least one renewable product. For example, in the TXU region, there are 13 REPs serving residential customers with 20 residential products and 5 renewable products. 8 Affiliated retail electric providers such as TXU and Reliant are now offering pricing which is not based on the Price to Beat. Affiliated providers also offer various innovative options for customers including reward programs such as airline miles, credits to customers if summer heat is particularly intense, and rates that are indexed to natural gas prices. Customers can visit a website or call a toll-free number (administered and widely advertised by the Public Utility Commission) to access extensive, objective comparative information regarding available options. The ease of 7 Legislative Report, Project No , Public Utility Commission of Texas, March 3, 2006 and Special Report: Beyond the Crossroads The Future Direction of Power Industry Restructuring, CERA, 8 August 2005 Report Card on Retail Competition, Public Utility Commission of Texas, 5 perrymangroup.com

7 access to such information is a fundamental tenet of competitive markets and generates greater efficiency than would be found in other sectors where knowledge is more difficult or expensive to obtain. Approximately 75% of the large commercial and industrial load is now served by competitive REPs. 9 Almost 58% of the total load in the competitive areas is purchased through non-affiliated providers. 10 Since the passage of SB7 in 1999, there has been significant investment in electricity generation facilities in Texas. The vast majority of the 25,000 MW of electric generating capacity added is natural gas-fired. Numerous new electric generating plants, including several coal-fired plants, are currently in the planning and design phases. Over the period following the enactment of retail electric competition, more than $11 billion has been invested in new plants, resulting in over 340,000 person-years of employment (an average of almost 50,000 jobs per year). Additionally, approximately $12.5 billion in potential generation capacity has been announced and is in various stages of planning and implementation Number of Premises Switched and Estimated Load, March 14, 2006, Electric Reliability Council of Texas, 10 Number of Premises Switched and Estimated Load, March 14, 2006, Electric Reliability Council of Texas, 11 New Electric Generating Plants in Texas Since 1995, Public Utility Commission of Texas, 6 perrymangroup.com

8 Renewable energy generating capacity has increased over the years. Wind-powered generating plants have added about 1,900 MW of electric capacity since Since competition began, hundreds of millions of dollars in discounts have been disbursed to Texans enrolled in the low-income assistance program. 13 From 1997 to 2004, total metric tons of emissions from Texas electric utility facilities have fallen 60% for CO 2, 73% for SO 2, and 77% for NO x. 14 Texas continues to be widely recognized as the healthiest and most successful market for retail electricity in the US and, in fact, one of the best in the world. Competition has led to cost savings, more innovation among providers, greater control and more choices for consumers, and additional capacity to meet power needs in the future. Even so, there are currently some proposals under consideration that could slow the forward progress of the Texas electricity market. The Perryman Group (TPG) was recently asked to quantify the effect of competition in the retail electric market on business activity in Texas. This report highlights findings from this endeavor. 12 New Electric Generating Plants in Texas Since 1995, Public Utility Commission of Texas, and Wind Project Data Base, American Wind Energy Association, 13 August 2005 Report Card on Retail Competition, Public Utility Commission of Texas, 14 Wind Project Data Base, American Wind Energy Association, 7 perrymangroup.com

9 The Perryman Group s Perspective TPG is an economic research and analysis firm based in Waco, Texas. The firm has more than 20 years of experience in analyzing the Texas economy and assessing the economic impact of corporate expansions, regulatory changes, real estate developments, and myriad other types of events affecting business activity. The key model used in this study, the Texas Multi- Regional Impact Assessment System, was developed in the early 1980s and has been continually refined, updated, and expanded since that time. This system has been used in hundreds of public and private sector applications and enjoys an excellent reputation for accuracy and reliability. In particular, the model has played a key role in numerous major policy initiatives in Texas (including, among others, judicial reforms, trucking deregulation, electric deregulation, tax policy, economic development incentives, telecommunication deregulation, and transportation funding mechanisms). It was used to estimate the potential benefits of retail electric competition prior to its implementation and has provided annual assessments of progress as the process has moved forward. TPG has conducted hundreds of impact analyses for the US and Texas economies as well as all Texas metropolitan areas, regions, and counties. Impact studies have been performed for hundreds of clients including many of the largest corporations in the world, governmental entities at all levels, educational institutions, major healthcare systems, utilities, and economic development organizations. 8 perrymangroup.com

10 Methods Used to Measure the Impact of Electric Competition on Business Activity Introducing competition into the retail segment of the electric utility industry has resulted in significant gains in business activity. As competitive market forces have come into play, available cost reductions are well in excess of the legislative mandate of 6% (adjusted for fuel prices). Customers have more freedom to engage in negotiation with power providers, in some cases banding together through aggregation programs to save even more than they could individually. These voluntary agreements represent one of the strengths of the transition to competition in Texas customer control. Cost savings stemming from competition have freed up dollars for other purposes saving, investing, and spending. The Texas economy has benefited; this study quantifies those positive effects. As an initial phase of this analysis, TPG estimated the direct savings by customer category. This task was accomplished by simulating the amounts that are paid under the competitive market system with those that would likely occur under a regulated regime. In the case of residential and small commercial customers subject to the Price to Beat, separate calculations are made for those that switch to competitive REPs and those that remain with the affiliated provider. This analysis was conducted within a dynamic context which fully adjusts for the stimulated electricity consumption resulting from lower prices. In addition to assessing the benefits of competition, TPG measured the economic harm associated with extending the Price to Beat. In 9 perrymangroup.com

11 essence, changing the parameters under which firms engage in competition will lead to increasing uncertainty and decreasing investment. Through developing a market model based on the initial implementation of SB7 and extending it appropriately to apply to subsequent policy changes, it is possible to measure the estimated direct investment losses in a conservative manner. Similarly, the incremental direct consumer savings that are likely to be observed when the Price to Beat expires and full competition is implemented are estimated based on a partial (50%) adjustment toward typical competitive prices (which should understate the actual declines which will occur). These results may then be simulated across the entire Texas economy using the impact assessment system described below. TPG further studied arrangements that automatically put customers in a plan unless they affirmatively take action to be withdrawn (sometimes known as opt out aggregation). Such programs are not beneficial. They limit choice (the entire purpose of competition), thus resulting in less efficiency and increased uncertainty. TPG has estimated that the overall cost of such programs would exceed $1.1 billion in gross state product over a ten-year period. Other initiatives to alter the successful competitive framework, such as the green taxes some have proposed that would artificially increase electric prices despite dramatic environmental improvements in recent years, are similarly counterproductive. If a recent proposal were to be enacted, the overall impact on the economy from higher electricity costs would be an annual loss of almost $1.2 billion in gross state product and more than 7,500 permanent jobs. In addition, such levies would reduce the viability of future power plant investments, thus potentially constraining the 10 perrymangroup.com

12 ability of Texas to sustain the power supply necessary for future growth. While enhancing environmental quality is an important objective and one that has been embraced by electric generators in Texas, it must be achieved in a rational manner that accounts for overall social well-being. Impact Assessment System The Perryman Group s impact assessment system, developed and maintained by the firm and used in hundreds of applications over the past two decades, was employed to estimate the spin-off (or multiplier) activity associated with the direct gains from competition. The direct benefits stem from the facts that (1) all categories of users paying lower prices for power will have additional resources to deploy to productive uses, and (2) the opportunity to compete brings a significant stimulus for the construction of new power plants. The basic technique used in this process is known as dynamic input-output analysis. In essence, this approach involves the creation of a system which estimates the amount of various inputs required to make a unit of output (measured in monetary terms). The impact assessment system uses survey data for more than 500 industrial categories to determine the magnitude of the multiple rounds of spending. In this case, as resources are deployed that would otherwise be spent on electricity, they generate activity in a variety of industries. As previously noted, the system fully accounts for the additional power usage which is stimulated by lower prices. 11 perrymangroup.com

13 Results of the Impact Assessment Four years of competition have led to a notable surge in electric generation facility construction. The pace has slowed in recent years, but several new power plants are under consideration. In addition, customers have enjoyed significant direct savings and the economy has benefited. Impact of Facility Construction Opening the Texas retail electricity market to competition led to billions of dollars of investment in new capacity. While much of this construction activity was concentrated in the early years of the transition to competition, there are currently a number of facilities in the planning and development stage. These past and future additions to generating capacity not only lead to sizable increases in business activity; moreover, they help ensure the adequacy of Texas power supplies for the future. The impacts reported herein include only those projects initiated after the enactment of Senate Bill 7, even though many of the others were built in anticipation of competition. In addition, only those completed or currently under construction were analyzed, despite the fact that there are several projects in the planning and development stages. All capacity is assumed to have been built on a least-cost basis. 12 perrymangroup.com

14 The economic impact of facility construction since SB7 began includes $ billion in Total Expenditures, $ billion in Gross State Product, $ billion in Personal Income, $5.380 billion in Retail Sales, and 342,015 Person-Years of Employment (an average of 48,859 jobs per year). All dollar values are expressed in current dollars to account for any inflationary effects. The impact of facility construction in 2005 alone totals $0.746 billion in Total Expenditures, $0.362 billion in Gross State Product, $0.247 billion in Personal Income, $0.095 billion in Retail Sales, and 6,022 Person-Years of Employment. 13 perrymangroup.com

15 The Economic Impact of Electric Generation Facility Construction on Business Activity in Texas Total Expenditures $0.746 $ Gross Product Personal Income $0.362 $0.247 $ $ Person-Years of Employment Since Passage of SB7 342,015 Since Passage of SB Only 2005 Only - 6,022 Retail Sales $5.380 $0.095 Source: The Perryman Group $0 $10 $20 $30 $40 $50 Billions of Dollars Impact of Cost Savings Competition has resulted in lower prices than would likely have been in place in a regulated market. Prices have risen due to dramatic increases in the cost of natural gas rather than failure in the competitive marketplace. A recent analysis by the PUC indicates that electricity prices under competition are substantially lower than they would have been under a regulated environment. These outcomes offer compelling evidence of the effectiveness and efficiency of the Texas market. Cost savings to customers are typically spent for other types of goods and services, which in turn generates additional economic activity. Similarly, industrial users and public entities are able to 14 perrymangroup.com

16 deploy substantial resources to increased production and the provision of needed services. The direct savings thus reflect Price to Beat savings, savings from switching, and low income credits. Direct Savings from Retail Electric Competition: 2005 $1.8 $1.660 $1.6 $1.4 $1.2 Total Direct Savings $3.661 Billion Billions of Dollars $1.0 $0.8 $0.716 $0.876 $0.6 $0.4 $0.409 $0.2 $0.0 Residential Small Commercial Industrial Public Sector Source: The Perryman Group As these savings are redirected into the economy, they generate significant business activity. In this phase of the analysis, it is important to account for the fact that as prices of electricity fall, more of it is consumed, thus decreasing the funds ultimately flowing out to consumer spending. Specifically, the direct amount of savings quantified in the residential sector was reduced to account for (1) increased electricity spending due to lower rates and (2) leakages into savings and out-of-state spending. It should also be noted that the positive economic effects will continue to rise as the percent of switching customers and usage grows over time. 15 perrymangroup.com

17 Residential Effects In the first year of competition, direct savings to Texas residential electric customers totaled about $300 million. By 2003, the direct savings grew to $469 million and reached almost $500 million in Estimated direct savings for 2005 approach $0.716 billion. The total residential impacts from these cost savings include $1.606 billion in annual Total Expenditures, $0.771 billion in annual Gross State Product, $0.476 billion in annual Personal Income, $0.433 billion in annual Retail Sales, and 9,524 Permanent Jobs. These positive effects continue to rise over time as more customers switch and the market becomes increasingly competitive. Small Commercial Effects In the small commercial customer category, the effect of cost savings totals $4.431 billion in annual Total Expenditures, $2.274 billion in annual Gross State Product, $1.360 billion in annual Personal Income, $0.915 billion in annual Retail Sales, and 24,310 Permanent Jobs. 16 perrymangroup.com

18 These positive impacts continue to rise. Last year s gains as measured by Permanent Jobs totaled 11,777, up from 6,233 in 2003 and 2,708 in Industrial Effects The impact of cost savings to industrial customers yields a positive economic stimulus of $2.245 billion in annual Total Expenditures, $0.853 billion in annual Gross State Product, $0.503 billion in annual Personal Income, $0.194 billion in annual Retail Sales, and 3,696 Permanent Jobs. These effects are also up significantly over time (1,063 Permanent Jobs in 2002). Public Sector Effects Public sector entities (cities, counties, school districts, and others) are saving millions of dollars each year. These cost reductions free up funds for other vital services and lead to an increase in business activity in the state of an estimated $1.448 billion in annual Total Expenditures, $0.746 billion in annual Gross State Product, $0.300 billion in annual Personal Income, 17 perrymangroup.com

19 $0.196 billion in annual Retail Sales, and 10,256 Permanent Jobs. The impact of these savings is up markedly from the 3,421 Permanent Jobs gained in Total Effects Combining savings to various customer classes yields direct cost reductions of some $3.661 billion, a sizable rise over last year s $2.060 billion. Furthermore, the upswing in savings has been realized every year of competition, with 2003 s total of $1.314 billion representing strong growth from the $815.0 million in direct savings during the first year of competition (2002). These savings lead to a notable economic stimulus of $9.731 billion in annual Total Expenditures, $4.645 billion in annual Gross State Product, $2.640 billion in annual Personal Income, $1.739 billion in annual Retail Sales, and 47,786 Permanent Jobs. 18 perrymangroup.com

20 $12 The Total Economic Impact of Cost Savings from Retail Electric Competition on Business Activity in Texas: 2005 $10 $9.731 Permanent Jobs Billions of Dollars $8 $6 $4 $4.645 Residential - 9,524 Small Commerical - 24,310 Industrial - 3,696 Public Sector - 10,256 Residential Small Commercial Industrial Public Sector $2.640 $2 $1.739 $0 Total Expenditures Gross Product Personal Income Retail Sales Source: The Perryman Group The increment to business activity is growing markedly over time, from a 2002 level of 11,368 Permanent Jobs to 19,499 in 2003 and 28,903 last year. It is also interesting to compare these results to those projected in a 1999 study by The Perryman Group prior to the passage of SB7. Even the optimistic scenario in this analysis posited a savings of about 13% in rates and a stimulus of 30,864 jobs at maturity. These benefits have been far exceeded during the fourth year of competition, thus suggesting that electric choice in Texas has more than lived up to expectations. Effect of Extending the Price to Beat As noted, extending the Price to Beat would have substantial negative effects. Customers would forego potential savings; 19 perrymangroup.com

21 moreover, changing regulatory parameters and increased uncertainty would likely lead to decreasing investment in additional generation capacity. 20 perrymangroup.com

22 Economic Harm of Extending the Price to Beat The transition mechanism embodied in SB7 calls for the residential and small commercial customer Price to Beat obligation to expire beginning in January, Some observers have suggested that it be extended for an additional period. A change from the anticipated pattern at this point is both unnecessary and counterproductive. The Price to Beat was designed to be a temporary mechanism to transition between a regulated environment and competition. The PTB allows for the affiliated providers to charge market-influenced prices while encouraging initial market entry and investment. As noted earlier, a recent study by the Public Utility Commission of Texas found that the Price to Beat is below the level at which regulated rates would likely be set. Moreover, there are now many competitive offers that significantly undercut the Price to Beat, thus assuring the establishment of a vibrant and active market. There are dozens of competitors operating throughout the state, many of which have been operating in Texas competitive electric market since its inception in Implementing a Price to Beat rate initially was important to allowing a competitive market to develop. It also provided residential and small commercial customers time to become accustomed to competition in the electric retail market, learn and understand the market, become familiar with various competing firms, and adjust to how they pay for electricity. Competing firms were given an opportunity to enter the market and gain market share before incumbent providers affiliated with or successor to the established 21 perrymangroup.com

23 utilities were allowed to set prices at will. In this way, the Price to Beat leveled the playing field to some degree and helped ensure the development of healthy competition. As noted, however, the Price to Beat was designed as a temporary measure to facilitate new market entry by competing firms. Market participants, both incumbents and competing firms, have been responding to a specific set of parameters including the assumption that the Price to Beat would expire on schedule. A change in policy will erode the competitive environment by introducing uncertainty regarding the process. It can also create capricious transfers of wealth that are not based on economic factors or corporate strategy, thus further limiting the legitimate growth of the market mechanism. Firms respond to higher risks by requiring higher returns, thus inhibiting investment and reducing the potential benefits of competition. Both incumbents and competitors have made entry and investment decisions subject to an established legislative framework. Arbitrary changes only disrupt the process. In addition, changing guidelines can lead to past decisions becoming economically inappropriate and disrupting the market mechanism. Harms accrue to suppliers and customers alike. The debacle that initially accompanied deregulation of banks and savings and loan institutions is more than ample evidence of the dangers of false signals. In that case, significant and unanticipated changes in the competitive framework contributed to the failure of hundreds of financial institutions and the loss of hundreds of billions of dollars in asset values. Thus, it is important that the market be allowed to continue to emerge in an appropriate and predictable manner. 22 perrymangroup.com

24 Finally, current pricing patterns suggest that the existence of this temporary constraint on the free movement of prices has had the effect of artificially keeping costs above the levels that will emerge in a fully competitive market. In other words, while the absolute level of prices will depend on natural gas and other fuel costs as well as numerous other factors, the evidence suggests that prices to many consumers will be lower once the Price to Beat expires than those that would occur if this market restriction remained in effect. TPG measured the harms to the economy if the Price to Beat is extended under conservative assumptions (briefly discussed in the Methodology section) and found them to be significant. The reduction in business activity in Texas stemming from an extension of the Price to Beat was found to be -$2.822 billion in annual Total Expenditures, -$1.175 billion in annual Gross State Product, -$0.702 billion in annual Personal Income, -$0.385 billion in annual Retail Sales, and -14,288 Permanent Jobs. 23 perrymangroup.com

25 The Economic Impact of a Hypothetical Delay in Expiration of the Price-to-Beat on Business Activity in Texas (Including Lost Investment and Annual Foregone Consumer Benefits) -$2.822 Total Expenditures -$1.175 Gross Product -14,288 Permanent Jobs -$0.702 Personal Income -$0.385 Retail Sales -$3.5 -$3.0 -$2.5 -$2.0 -$1.5 -$1.0 -$0.5 $0.0 Source: The Perryman Group Billions of Dollars While the Price to Beat is an essential component of the transition to competition in the retail segment of the electric power industry, there is no credible argument for extending it beyond its originally scheduled expiration date. In fact, such an extension would have notable adverse consequences, thus negating many of the potential future gains from full competition. 24 perrymangroup.com

26 Conclusion An adequate and affordable supply of electric power is essential to current and future prosperity. Since the introduction of competition in the retail segment of the market for electric power, Texans have enjoyed substantial savings compared to likely rates in a regulated environment. Moreover, investments in generation facilities have helped ensure additions to capacity that will help to serve the needs of a growing population and economy. The direct savings to customers continue to grow, reaching an estimated $3.611 billion last year. The redirection of these savings into other purchases leads to a gain in business activity in the state of some $4.645 billion in output and 47,786 jobs. The Perryman Group has examined the economic effects of the transition to competition in the retail segment of the electric power industry on an annual basis for the past four years. Over that period of time, the positive effects of competition have grown markedly. For example, the total gain in jobs has more than quadrupled since the first year of competition. These outcomes will likely continue to grow. Moreover, the economic impact of competition to date is about 55% higher (in terms of job creation) than indicated in even the high case scenario of a study of the potential benefits that TPG prepared prior to the onset of retail electric markets. 25 perrymangroup.com

27 Competition has contributed to better pricing and greater customer choice in a variety of industries ranging from airlines to telecommunications to trucking. The same can now clearly be said for electric power in Texas. Respectfully submitted, M. Ray Perryman, PhD President, The Perryman Group 26 perrymangroup.com