Sam Houston Electric Cooperative

You've heard the old saying, "The devil is in the details." Well, just imagine all the little demons lurking in the densely packed pages of proposed legislation changing the way Texas consumers to choose their power suppliers.

The motivation for restructuring the electric industry is coming primarily from big industrial users of electricity, investor-owed utilities (IOU's) and independent power producers. They expect to make a lot of money in a restructured market, and already they're running expensive ads touting the benefits the average consumer will experience in a competitive market.

Proponents of competition say that retail deregulation should result in lower prices, more options for customers and help attract new companies to Texas. However, the state's 83 electric cooperatives, which represent some three million member-consumers, are skeptical about the proposed benefits of restructuring.

As a matter of fact, we do not believe it will benefit typical residential consumers in California and other states that have taken the restructuring lead as they have not experienced the benefits that proponents of deregulation so ardently promised. What's more, Texas already has some of the lowest electric rates in the United States, and our reliability is superior to the national standard, so we don't see the need for a rush to deregulate.

We're also concerned about the trend we've seen in other industries that have deregulated, where a few industry giants gobble up the smaller companies or existing companies merge, until only a handful of companies remain in business. Customers are left with a choice in name only. Despite our reservations, we're willing to accept any industry restructuring plan that meets certain basic conditions. As the one segment of the electric utility industry that represents those on the buying side of the meter, co-ops will be speaking up for the fair treatment of all customers, access to affordable electric service for everyone and electric system safety and reliability. In Austin and in Washington, where restructuring legislation also has been introduced, those bedrock considerations should be the primary goal of any restructuring scheme. They shouldn't be mere afterthoughts to legislation designed to favor certain large users.

As a century looms dead ahead, it's only natural that Texas lawmakers will have their eyes focused on the future. We want those lawmakers to know that electric co-ops in the Lone Star State have their own vision for the future as well. We see flexible power providers responsive to their member-consumers, not to corporate boards and anonymous investors. We see groups coming together to "cooperate," not only to provide electric power and other services to their members, but to bring new opportunity to their communities. It's the co-op way. It's worked throughout much of the 20th century; it will work in
the 21st century.