Texas ROSE Quarterly Newsletter

Texas ROSE Raises $$$Millions for Low-Income Weatherization
Thanks to Texas ROSE and Texas Legal Services Center (TLSC) seven utilities are spending a combined $5.2 million a year on low-income "piggy-back" programs. The program "piggy-backs" on the federal low-income weatherization program. The utility funds can provide weatherization, heating and cooling systems, and replace refrigerators and lights that use too much electricity with new energy efficient models. The programs lower electricity use and make utilities more affordable for low-income families in the long-term.

Utility Company Annual Expenditure

 
The funds will help an additional 2,500 low-income households a year but there is still plenty of work for Texas ROSE.  Texas ranks far behind other states in providing programs to make electricity more affordable. Houston Lighting & Power and El Paso Electric have no piggyback program. TU Electric should be spending more. Most municipal utilities and electric cooperatives offer no low-income programs. Texas ROSE would like every utility in Texas to provide a low-income weatherization program. Ideally every utility should be spending 0.2% (two-tenths of one percent) of total revenues on low-income energy conservation programs.

Texas ROSE Has a Website!
Volunteer website and membership coordinator, Sharron Rush is waiting to hear from you. Visit us at
http://www.main.org/texasrose

Board of Directors Gets New Look
The Board of Directors for Texas ROSE recently reorganized. The Board elected member Karl R. Rábago to the position of President. Karl is a vice president with Planergy, a 20-year old energy services company. Karl is a former public utility commissioner for the state of Texas. The Board also elected Patrice "Pete" Parsons to the position of Vice President. Pete is an associate deputy commissioner at the Texas General Land Office and former director of the State Energy Conservation Office. Larry J. Laurent, private attorney is now serving as secretary-treasurer. Larry is former chief of the Texas Attorney General's energy division.

More Customers Say Yes to Energy Efficiency and Renewable Energy
Through the PUC's integrated resource planning (IRP) rules utilities are learning more about customer preferences. Deliberative polls conducted by El Paso Electric and Houston Lighting & Power companies showed strong customer preferences for energy efficiency and renewable energy and support for resources that protect the environment. Carol Biedrzycki represented Texas ROSE on advisory boards to help prepare educational materials and participate as an expert panelist. The results of the polls are consistent with those conducted in 1996 by Central Power & Light, West Texas Utilities and Southwestern Electric Power companies. Similar polls will be conducted by Entergy Gulf States, Southwestern Public Service Company, and TU Electric.

from the President
Dear Friends of Texas ROSE:
The winds of change are sweeping over the once quiet electric utility industry. Just a few years ago, when I sat on the Public Utility Commission of Texas (PUC), decisions were made slowly and the problems were more clear. Working with the regulatory process was difficult, but with time and persistence, many issues could be resolved. It is not that regulation is perfect -- far from it. But as recently as 1994, utilities were always going to be utilities, and the regulatory process was always going to operate according to predictable rules.

All of that has changed. In some states, like California and Massachusetts, residential customers must now begin choosing their electric company. Major new laws and regulations have been created to try to accomplish what seems to be an impossible task. The idea behind the new laws is to reduce the overall regulation of electric companies, give consumers more choices and still make sure that everyone has the electricity they need to survive in a modern world. Everywhere these new laws are changing every aspect of electric utility regulation. Even Texas, which hasn't yet decided to go down the deregulation path, has been affected. The PUC and the electric companies are consumed by the notion that big changes are coming. Unfortunately, that means some important business has gone unfinished.

This is the environment in which Texas ROSE performs today. Texas ROSE works for consumers, and for the communities where they live. Our organization knows that big changes probably mean big problems for ordinary consumers. Someone needs to speak up for consumers as government, utilities and other businesses sit down to decide how you will buy electricity in the future.

Many power plants operating today are expensive -- far more expensive than the energy efficiency programs Texas ROSE has been fighting for over the last five years. Those who support deregulation want to reduce their electricity costs, and are looking for someone to assume the burden of those expensive power plants. Texas ROSE wants lower electricity costs too. We just want to make sure that high volume commercial and industrial customers do not benefit from an open market at the expense of ordinary Texans. We also want to make sure residential customers have access to energy efficiency programs because energy efficiency is still a cost effective alternative to building new power plants even if the owner of the new plant is not a regulated utility.

Carol Biedrzycki, Texas ROSE's Executive Director, is an expert in energy efficiency and utility regulation. Her work is all about making sure the viewpoint of the small consumer is represented at the Texas PUC. While Texas ROSE will never have all the resources of a multi-billion dollar utility company, we have accomplished a great deal with very little funding. Texas ROSE has played an important role in the outcome of many PUC decisions which have led to growth in energy efficiency programs, renewable energy development, and the offering of special programs for low-income customers. Thanks to Texas ROSE, more than $5 million is being spent on low-income energy efficiency programs today.

The changes already happening in the electricity industry will affect our lives for many years to come, and there are more on the way. Having a voice in the debate for ordinary Texans is absolutely necessary. Thanks to your support, Texas ROSE has been standing tall. With your continued support, we will continue to protect your interests.

Sincerely,
Karl R. Rábago
President
Board of Directors

Texas ROSE asks Court for Fair Treatment in Utility Cases
On December 22, 1997, after trying every other possible option, Texas ROSE filed suit in Travis County District Court to try to level the playing field in utility rate cases before the Texas Public Utility Commission. Texas ROSE is seeking reimbursement of its costs for successfully challenging wasteful and ineffective energy efficiency programs paid for by customers of Texas Utilities Electric Company (TU Electric).

Under the law today, electric utility lawyers get paid -- from rates collected from customers -- no matter whether they win or lose. TU Electric was allowed to recover $28.5 million from customers over a twenty year period to cover its legal expenses in the case. Texas ROSE made extraordinary efforts to challenge the utility position, and yet, spent less than $250,000.

In the TU Electric case, Texas ROSE proved TU Electric was overcharging customers by $12 million for so-called "energy conservation" programs that actually made customers use more electricity. Texas ROSE also supported a new low-income program which is helping customers today.

Over half of all state commissions reimburse consumer and environmental groups for legal expenses when they make a substantial contribution to the case. To avoid a court case, Texas ROSE specifically asked the PUC to order TU to reimburse the expenses as allowed under federal law. Even though many state commissions reimburse expenses under the federal law the Texas PUC has forced Texas ROSE to go to court. With help from Don E. Walden, a private attorney who once worked for Texas ROSE, and a small grant from the Stern Family Fund, a lawsuit was prepared and filed. The facts are in Texas ROSE's favor, as is the law. We will keep you up to date with developments.

Consumer Protection and Low-Income Programs
Texas ROSE has a new report "RESIDENTIAL AND LOW-INCOME ELECTRIC CUSTOMER PROTECTION." The report provides information about residential and low-income electric utility customers and recommends consumer protection and low-income program standards for Texas electric utilities.

Based on experience in other states and other industries, electric utility competition will not benefit small customers. Benefits accrue primarily to customers who use large volumes of energy.

The Texas ROSE position is simple. Electricity is something we all need. Any change in the electric utility industry has to be done right. The protection of ordinary people who pay for electricity should be "on the table" with all the other issues. Some of these protections include:

• Universal Service and Energy Conservation
• Standard Billing Procedures and Collection Practices
• Standard Procedures for Obtaining Service and Establishing Credit
• Adequate Notice of Termination of Service
• Fair Pricing and Protection Against Slamming, Cramming and Unfair Marketing Practices
• Accessible Effective Dispute Resolution
• Customer Education

Access the report on the website, browse the Consumer's Bill of Rights or call the Texas ROSE office.

Another Way Texas Shares
Texas ROSE is officially a member of Another Way Texas Shares. Another Way promotes giving to organizations like Texas ROSE in the workplace, primarily through payroll deductions.

Interim Committee Hearings
Retail competition would allow us to choose an electric supplier the way we choose a long distance telephone service company. The Texas Senate created an Interim Committee on Electric Utility Restructuring to make recommendations on electric utility retail competition. The committee members are: Chairman Senator David Sibley, (Waco) Senator Ken Armbrister (Victoria), Senator Gonzalo Barrientos (Austin), Senator Teel Bivins (Amarillo), Senator David Cain (Dallas), Senator Troy Fraser (Horseshoe Bay), and Senator Jane Nelson (Flower Mound). A hearing held on February 4, included a panel on customer protection, including protection for low-income customers. Barbara Alexander, a leading consultant from Maine, provided information about what other states have done or plan to do as they restructure the electric industry. According to her research, every state that has restructured provides programs for low-income customers to help prevent loss of service. In other states, universal service programs include no cost weatherization, a discounted rate, and billing assistance.

The Texas Association of Community Action Agencies presented over 5,500 signatures on a petition supporting Texas ROSE policy on low- income programs.

You can write to the members of the Interim Committee at: Texas Senate, P.O. Box 12068 - Capitol Station, Austin, Texas 78711. The Committee will be making its recommendations to the full Senate in October.

Did you know?
Inability to pay for utilities causes homelessness and frequent moving which results in poor educational achievement.

The cost of wind power has declined by 80% over the last ten years. Photovoltaic cells cost about one-tenth of what they did in 1975. More information about renewable energy potential in Texas

You Can Make a Difference
What are your concerns about electric utility competition and customer choice? What energy conservation programs are needed in your community? Are you concerned about air quality and power plants? Should the PUC have a policy in place to set a standard for affordability programs for low-income customers? Let us know about your community and changes you would like to see for a brighter energy future. Get in touch!

Membership Information
Be a member of Texas ROSE and help promote affordable electricity and a healthy environment. Fill out the on-line membership form now and join our efforts!

Texas Ratepayers' Organization to Save Energy Carol Biedrzycki, Executive Director 815 Brazos Street, Suite 1100 Austin, Texas 78701-2509 512-472-5233 Send email to sharrush@mail.utexas.edu

Back to Texas ROSE home page

last updated September 12, 1998
http://www.main.org/texasrose/newsletter.html