Nueces Electric Cooperative
&
AEP Texas Central Company
Proposal to
Eliminate Dually Certificated Electric Distribution Areas
in Nueces, Jim Wells, Kleberg, Kenedy, and Duval Counties
Back to Territory Proposal Home
Frequently Asked Questions
Who is affected by the proposal?
How are customers involved in this process?
How do rates and reliability compare between the two utilities?
How will we be notified if this is approved?
· Texas Senate Bill 7 on electric utility restructuring encourages using a single electric distribution company in areas where retail choice will be available. This provision of the law was a key element in the AEP-CSW merger settlement agreement that included AEP Texas and Nueces Electric Cooperative. The two utilities have jointly developed a proposal -- subject to PUCT approval -- that will eliminate overlapping service territories.
· The two utilities have developed a plan that would establish the presence of only one utility within each proposed service territory boundary. The goal in making these changes is to have compact service areas, a minimum of customer confusion and a high quality of service
· If this proposal is approved, approximately 6,166 accounts out of more than 258,000 customers in portions of 5 neighboring Coastal Bend counties will likely be transferred to a different electric distribution provider (energy delivery company).
· AEP TCC and NEC plan to file a Certificate of Convenience and Necessity (CCN) with the Public Utility Commission of Texas (PUCT) in January 2005 seeking approval of the proposal to eliminate these overlapping service territories. The PUCT must approve the CCN before any action can be taken.
Who is affected by the proposal?
· If this proposal is approved, approximately 6,166 accounts in portions of neighboring Coastal Bend counties will likely be transferred to a different electric distribution provider (energy delivery company).
· The proposal envisions that approximately 5,169 AEP-TCC customers will become customers of NEC.
· The proposal envisions that approximately 997 NEC member consumers will become customers of AEP-TCC.
· The affected areas include parts of Nueces, Kleberg, Jim Wells, Duval and Kenedy counties.
· Of the 5,169 AEP-TCC affected customers…
o Approximately 2,500 are in southern and western Nueces County
o Approximately 2,500 are in Kleberg County
o The remaining are scattered in the other three counties
· The majority of the approximately 997 affected NEC members are in southern and western Nueces County
· A map illustrating the impacted areas in these counties and how the utilities propose to divide the areas may be viewed:
1. Online at www.nueceselectric.org/territoryproposal.html
2. By contacting Richard Byrne at AEP, (361) 881 - 5387
3. By visiting NEC’s office in Robstown at 709 E. Main Street (387-2581 or 1-800-632-9288).
· All customers who are transferred to a new delivery company will have the ability to choose their power provider.
· Affected NEC customers currently receive electricity over electric distribution lines owned and operated by NEC, and purchase electricity from NEC. If the PUCT approves this application, AEP TCC will acquire those electric distribution lines from NEC and begin operating them. AEP TCC’s territory is open to retail electric competition; therefore, the former NEC customers will be able to purchase electricity from any Retail Electric Provider (REP) that serves in AEP TCC’s territory; including NEC. (To obtain a current list of available REPs: www.powertochoose.org )
· Affected AEP TCC customers currently receive electricity over electric distribution lines owned and operated by AEP TCC and purchase electricity from a retail electric provider chosen by the customer. If the PUCT approves this application, NEC will acquire those electric distribution lines from AEP TCC and begin operating them. NEC territory will be open to retail electric competition if this proposal is approved. Therefore, the former AEP TCC customers will be able to purchase electricity from any Retail Electric Provider (REP) that serves in NEC’s territory. (To obtain a current list of available REPs: www.nueceselectric.org)
How are customers involved in this process?
· Community meetings conducted in Fall 2003 (September)
· Utilities presented facts to address customer concerns
· Public Notices
· Customers may contact Richard Byrne at AEP (361-881 – 5387) or John Sims at NEC (361-387-2581 or 1-800-632-9288) if they have additional questions.
· (Not Available Until Proposal is Filed) If customers wish to participate in this proceeding by becoming a party or to comment upon the action sought, they should contact the Public Utility Commission of Texas, at P.O. Box 13326, Austin, Texas 78711-3326 or call the Public Utility Commission (PUCT) at (512) 936-7120 or (888) 782-8477. Hearing- and speech-impaired individuals with text telephones (TTY) may contact the PUC at (512) 936-7136. The deadline for intervention in the proceeding is March 11, 2005, and a letter requesting intervention should be received by the PUCT by that date. All communications should reference Docket # 30633.
How do rates and reliability compare between the two utilities?
· Due to the fact that customers have a choice of power providers from among those providers available in each utility’s area, we know that bills may be impacted by these changes. NEC and AEP also have different rates for different types of customers, so the delivery service rates and fees may also vary.
· Reliability comparisons have been made between all affected area distribution feeders for both utilities. RELIABILITY IS COMPARABLE BETWEEN THE UTILITIES.
How will we be notified if this is approved and that we will be transferred to a new energy delivery company?
Shortly after the proposal is filed, the PUCT will require AEP TCC and NEC to post public notices and notify local area governments, electric utilities, and other retail market participants. The PUCT has up to one year from the date of the filing to make a decision. Upon approval, the utilities plan to begin immediately to transfer customers.
NEC Customers To Be Transferred to AEP TCC: Affected NEC customers will be notified approximately 30 days before their scheduled transfer to AEP TCC and will be given customer choice information for the AEP TCC service area.
AEP TCC Customers To Be Transferred to NEC: AEP TCC does not maintain mailing address or telephone numbers for its customers due to the structure of the deregulated retail electric market. As a result, immediately upon proposal approval by the PUCT, this information will be requested from each customer's retail electric provider of record. As this information is acquired, AEP TCC customers will be notified approximately 30 days prior to their transfer to NEC. If the information is not received, the customers will be notified as soon as is possible and will be given customer choice information for the NEC service area at that time.