Thursday, December 18, 1997

TU customers may get rate decrease

By ROY A. JONES II / Regional Editor

SWEETWATER -- TU Electric's 2.4 million customers -- including about 50,000 in the Big Country -- will pay lower monthly bills if an agreement announced Wednesday is approved by the Public Utility Commission of Texas.

According to Linda Edwards, TU manager for Sweetwater-Colorado City, the company has reached a joint agreement with the PUC staff, the Office of Public Utility counsel, consumer groups and industrial customers that will give customers a $263 million decrease in bills over a two-year period beginning Jan. 1, 1998.

If approved by the PUC, the plan would lower the base cost of electricity for residential customers by 4 percent beginning in 1998 and an additional 1.4 percent in 1999, or a total of 5.4 percent.

Meanwhile, general service secondary customers -- typically small and medium-sized businesses -- would receive a 2 percent decrease and all other retail customers would see a 1 percent decrease in 1998.

Edwards said the typical residential customer will realize a savings of $75 to $100 over the two-year period.

Even if the PUC does not meet before Jan. 1 to finalize the agreement, interim approval is expected and TU is gearing up to place the new rates into effect Jan. 1, she added.

"We are pleased we were able to reach an agreement that benefits customers, businesses and the company," said Tom Baker, president of TU Electric's Electric Service Division.

Edwards said the company is able to offer customers lower electric bills in 1998 because of "successful cost-control efforts over the past few years."

At this point TU is not offering a two-phase decrease to the business and retail customers, like the residential customers -- "but we think something will come out of the Legislature on deregulation in 1999 that may help us to do that," Edwards said.

The agreement limits TU Electric's earnings using any revenues above a ceiling and other methods to reduce the company's investments in power plants built to serve customers, Edwards explained.

"This agreement gives all retail customs an immediate cost reduction and takes steps to reduce the company's costs, making it more competitive for the future," Baker said.

TU Electric is the principal subsidiary of Texas Utilities Company, a Dallas-based energy services company.