| 
                  In the past, one company
                  provided all parts of
                  your electric service (generation, transmission and
                  distribution, and retail sales). With
                  competition, these parts are separated.
                   The actual delivery of
                  electricity across poles
                  and wires to your home is
                  called transmission and
                  distribution. These services
                  are provided to you by the
                  local wires company, which is responsible for
                  maintaining the poles and wires, and responding
                  to emergencies and power outages as
                  always. The PUC continues to regulate the delivery
                  of electricity to ensure the safety and reliability
                  of your electric service. 
                  With electric competition, Retail
                  Electric Providers
                  (REPs) sell electricity to you and provide
                  functions such as customer service and
                  billing. REPs compete for your business by
                  offering lower prices, renewable energy options,
                  added customer service benefits or other
                  incentives.
                  | 
                
                   
                 | 
              
              
                
                   
                   
                  "The
                  basic concept of energy deregulation in Texas is to develop a
                  better service for the customer by creating a climate of
                  competition." 
                  
                    
                      | Your
                        current provider will no longer be a provider. Your
                        current utilities company will no longer provide
                        all-in-one power generation, transmission/distribution,
                        and retail energy services. You will purchase your
                        electricity from one of Texas' Retail Electric Providers
                        (REPs) - entities that are separate from Power
                        Generating Companies (PGCs) and
                        Transmission/Distribution Service Providers (TDSPs).
                         Every REP is a
                        "new kid in town." Energy being sold by
                        Retail Electric Providers is a new facet in the Texas
                        energy market. Although some REPs bear similar names to
                        pre-deregulation utility companies, they are
                        newly-formed entities. The first Texas REP was certified
                        by the Texas PUC in November 2000. 
                       | 
                     
                    
                      | You can
                        choose what is best for you. With a new competitive
                        retail market opened, you can now make the choice as to
                        which REP will best serve your particular energy needs. | 
                     
                   
                 |