Third Edition Guide to Electric Power in Texas January 2003 Houston Advanced Research Center and Institute for Energy, Law & Enterprise University of Houston Law Center Guide to Electric Power in Texas Third Edition January 2003 Houston Advanced Research Center 4800 Research Forest Drive The Woodlands, Texas 77381 281/367-1348 Fax 281/363-7924 http://www.harc.edu Institute for Energy, Law & Enterprise University of Houston Law Center 100 Law Center Houston, TX 77204-6060 713/743-4634 Fax 713/743-4881
[email protected] http://www.energy.uh.edu our Public Utility Commission and Legislature, Preface are important benchmarks. This edition of the Guide, like previous ver- sions, was prepared to provide a comprehen- This Third Edition of Guide to Electric Power sive and balanced educational resource for a in Texas comes at a time of great change and wide range of retail customer groups, from uncertainty in the electric power industry in interested residential consumers to large com- Texas and the United States. Nationwide, the mercial and industrial organizations. The outstanding questions deal with how best to Guide was first published in 1997, after the build workably competitive markets for bulk, Texas Legislature created our own wholesale wholesale transactions of power and the finan- market and when thinking began to coalesce cial settlements that accompany these sales. with regard to participation in the marketplace Should we adopt a national market design that by retail customers. Our goal was then, and will establish and enforce common standards remains, to provide both background on our for how these transactions take place? Will state’s electric power industry and history and such an approach ensure adequate and effi- the points of debate on how best to provide cient investments in transmission capacity? free choices and a different set of options so How can we best provide open, transparent that the benefits of competition can be intro- flows of information so that trading, market- duced and flourish.