Serving Energy Needs of Rural Texans Since 1939
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NewCorp Resources Electric Cooperative
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Recent News and Information from Cap Rock EnergyELECTRIC DEREGULATION AND YOUDeregulation of the electric utility industry in Texas was introduced through Senate Bill 7 (SB 7) , a bill passed in 1999 by the Texas Legislature. This bill essentially deregulated the retail power industry and provided for competition in the retail market effective January 1, 2002. At the time of the passage of SB7, mainly investor-owned utilities were affected. Municipal systems and rural electric co-ops were excluded from definition as a utility and therefore had options that were not provided for investor-owned utilities (IOU’s). Most municipals and co-ops determined not to enter deregulation. With the introduction of competition, affected companies were asked to identify and separate functions. The operations related to producing and selling electricity at retail were separated from the delivery of electricity to homes and businesses. Companies that delivered electricity to homes and businesses became known as transmission and distribution utilities, and these companies were not allowed to own electric generation assets. The Public Utility Commission of Texas (PUCT), at the direction of the Texas Legislature, has postponed electric competition in some areas of Texas to ensure the development of sufficient infrastructure, and to guarantee that customers in those areas will not be negatively impacted by entry into deregulation. Cap Rock Energy Corporation is not a part of deregulation, or restructuring, because the major portion of the company’s service area is outside the Texas grid, or the Electric Reliability Council of Texas (ERCOT). Though Cap Rock is not a part of deregulation, the company’s rates continue to be as low or lower than rates to many customers in a deregulated market, and we continue to search for opportunities to reduce costs even further. Cap Rock is under the jurisdiction of the Public Utility Commission of Texas and PUCT has just completed a review of Cap Rock’s rates. A basic fact is that electricity is a different consumer good than hamburgers, shoes or automobiles, which offer variations in taste, style and color. Electricity is electricity, and what we want is what it creates: refrigerated sodas or hot coffee, a home well heated or cooled, and a light to read by. No one can say, “Our electricity is tastier, prettier, or lasts longer.” What most customers want is affordable electricity that is readily available and dependably delivered. And those important qualities are mainly a function of service – which is what Cap Rock Energy provides. Service to us means… Cap Rock is where you are – in local offices. Cap Rock is upfront and personal – you can talk to a real, live person when you call the company, no matter where you are located. Employees are your neighbors. They know you, what your problems are and how to fix them in the shortest length of time. At Cap Rock, our focus is on the customer and we believe that gives our customers a competitive advantage.
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