State Representative Garnet F. Coleman (D-Houston) announced that TXU/KKR will cut utility rates by 15% throughout the state over the summer months. In addition, TXU will place a summer moratorium on disconnecting electricity from senior and low-income consumers.

 

"Rep. Jim Dunnam, Rep. Rene Oliveira,  myself and others worked very hard to ensure TXU provided much needed utility relief for Texas consumers," Rep. Coleman said. "As a result, this summer TXU customers will have their utility rates cut by 15%, and no senior or low-income consumer will be without air conditioning during the hot months ahead."

 

TXU/KKR had previously announced that they would cut utility rates by 10%. That will now be increased to 15%. The 15% rate cut is expected to provide a total savings of approximately $395 for the average single-family household.

 

According to a press release from TXU:

 

"Of that rate cut, six percent was delivered in March and four percent was to be delivered upon the close of the merger, which is expected late this year. Instead, these residential customers will now receive the full 10 percent price cut in early June and receive an additional 5 percent when the transaction closes, bringing the total price cut to 15 percent."

 

During debate on Senate Bill 482, Rep. Coleman & Rep. Rene Oliveira passed an amendment to the budget that would have cut electricity rates throughout Texas by 15%. However, the amendment was stripped when the bill went to conference committee, along with an amendment by Rep. Coleman & Rep. Jim Dunnam to increase emissions standards across the state.

 

"I'm pleased to see TXU has adopted the 15% cut that was in my amendment, even though the legislation did not pass," Rep. Coleman said.

 

Throughout the session, Rep. Coleman promised to fight for lower utility rates for Texas' utility consumers. The announcement by TXU is the first result of the efforts by Rep. Coleman and others. Rep. Coleman is drafting a letter to the Public Utility Commission (PUC) urging the PUC to adopt emergency rules requiring other utility companies to follow TXU's lead.

 

"I'm hopeful that all energy providers across Texas follow TXU's lead, and I am working closely with the PUC to ensure that happens," Rep. Coleman said.

 

The following are the details of the TXU announcement:

 

1.      If a consumer is low-income or at least 62 years of age, TXU will not disconnect electric service. Those customers may instead enter into a deferred payment plan where the customer may pay as little as 25 percent of the current electric charges each month.

 

2.      If a consumer is low-income and at least 62 years of age, TXU will not disconnect electric service. Those customers may instead enter into a deferred payment plan where the customer may pay as little as 25 percent of the monthly electric charges. Payments would not begin until October 1, 2007 -- mirroring what was done in the summer of 2006.

 

3.      Any customer designated as critical care will not be disconnected for non-payment.

 

4.      TXU will waive deposits for low-income residential customers who are at least 62 years of age and for residential customers with an electric bill payment history showing no more than one late payment during the prior 12 month period.

 

5.      TXU will not charge a penalty to any residential customer for requesting cancellation of a month-to-month retail electric service plan.