Texas Association of Manufacturers Texas Energy Summit

1
Texas Association of ManufacturersTexas Energy
Summit

• Charles Griffey
• November 16, 2006

2
Reliants Commitments

• Reliant is committed to bringing the benefits of
  competition to customers.
• Reliant is committed to pricing its retail
  products consistent with trends in forward
  wholesale power prices.

3
Millions Of Texas Residential Customers Have
Expressly Exercised Their Choice And
Residential Customers Have Enjoyed Their Right To
Choose Competitive Electric Products
84 of Houston area Residential Customers have
made an observable choice and only 36 remain on
the Price-To-Beat
SourceCustomer Information from Bret Slocum
letter to PUC Commissioners, November 1, 2006 and
Internal Reliant Energy forecast, November 2,
2006.
4
Texas Residential Electricity Rates Compare
Favorably To Major Cities Across the Nation
Sources All cities except Dallas and Houston
based on EEI report Typical Bills and Average
Rates Report Summer 2006. Competitive Offers
based on www.powertochoose.org as of November 6,
2006. Houston and Dallas prices based on
recently announced discounts off of the Price To
Beat (announced October 3, 2006).
5
Prior to Competition Municipal Utilities Had
Lower Prices than IOUs2001 Residential Rates
Note Non Competitive areas rates used September
rate comparisons (last available from PUC) 2001
bills taken from PUC website at
http//www.puc.state.tx.us/electric/rates/NCrate/2
001/Jul-01r.cfm 2006 bills (non-competitive
areas) taken from PUC website at
http//www.puc.state.tx.us/electric/rates/NCrate/2
006/sep06r.pdf 2006 bills (competitive areas)
taken from www.powertochoose.com and using lowest
competitive offering from each service territory
as of November 7, 2006
6
Cumulative Customer Savings Actual PTB Compared
to Daily Adjustment for Gas Prices
29 Million in Customer Savings
7
Reliants Recently Announced Price Decrease is
Consistent With Market Conditions
Forward prices have stayed much higher than spot
prices until very recently while
the cost of transforming gas to power has
substantially increased in the last year.
8
Reliants Recently Announced Price Decrease is
Consistent With Market Conditions
As a result, increased heat rates have
significantly offset half of the decrease in gas
prices, but even so
9.32
recently announced retail price decreases are in
line with the market conditions.
9
Changes in Prices in 2006
10
Changes in Prices in 2006
11
Changes in Prices in 2006
12
Changes in Prices in 2006
13
There is little to no choice in states with load
auctions
Residential Customer Switching Rates