LON BURNAM
DISTRICT 90 • FORT WORTH
December 15, 2006
For Immediate Release Contact: Doug Lewin, 463-0740
Burnam Files Bill To Investigate Way Out of Deregulation
(Austin, TX) – Rep. Lon Burnam (D-Ft. Worth) filed House Bill 395 today which would
require the Public Utility Commission to present a report with alternatives to the current
system if, in the summer of 2008, Texas electricity prices are not at or below the national
average. The report from the PUC would be due by the first day of the 2009 Legislative
session.
“My constituents, like millions of others across the state, are paying significantly more under
deregulation, regardless of whether they have switched to a new provider,” said Rep. Burnam.
“Electric deregulation in Texas has been incredibly one-sided; big companies are making billion
dollar profits while households are paying record high electricity prices. While we need real reforms
to the electric market now, it is essential we explore alternatives for the longer term. This bill would
direct the PUC to do exactly that.”
Prior to deregulation in 2002, residential electric rates in Texas were at or below the national
average. Standard residential electricity rates in North Texas have increased over 80% since
January 2002. Competitors’ rates have gone up 73% over the same period.
“While the electric industry cites a Public Utility Commission study from earlier this year that
calculated a potential savings for Texas consumers under deregulation, the study itself says
calculations made were ‘fraught with uncertainties,’” Burnam said. “What’s not uncertain is
that electric rates for my constituents have gone through the roof.”
“The Legislature needs to act now to protect consumers. I talked to a doctor just today who told
me he’s never had so many patients report that they are choosing between medication and electricity
than he has this year,” Burnam added. “This bill helps prepare Texas to change direction if we
continue down this road of ever increasing prices.”
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