TXU to use long contracts to give market comfort feeling

Reliant to reward non-shoppers as battle lines are drawn

Texas' two biggest incumbents rolled out plans to hang onto price-to-beat customers when full competition starts Jan 1.
Rules of the road for California’s new ISO market-IV
Nov 15 audio conference

FERC liked California’s efforts to get a market going in the Golden State and thus gave the design a quick turnaround but pointed to some important caveats.  The Calif ISO has appointed Charles King as vice president of market development and program management. He’s the guy charged with getting the program going.  Join King along with Gary Ackerman from the Western Power Trading Forum and Nora Mead Brownell to learn the details of the program and ask the panelists your questions ... click here for details.         TXU Energy launched a four-part strategy aimed at preserving its position as a market leader.
        "The competitive Texas electricity market has consistently delivered benefits to customers and has challenged all competitors to find unique strategies to be successful," noted TXU Energy CEO Jim Burke.
        He understands that lower prices, price protection and more choices are what get customers shopping.
        How will Burke keep those price-to-beat customers from switching?
        By offering them three-year protection against price hikes.
        Price-to-beat customers as of Dec 31 will have the chance to join the plan that will shield them from fuel-related price spikes through Jan 1 2010.
        Prices could rise from changes in ERCOT or wires fees, TXU noted.
        "There isn't another consumer-oriented service or product that provides three-years of price-protection with no minimum term or cancellation fees," Burke observed.
        He thinks that in three years new, diverse fuel sources will bring greater price stability to Texas.
        TXU as well is giving residential customers in its incumbent territory a customer appreciation bonus of $100.
        It will be paid out over a year in four installments.
        That's to reward loyalty -- and make customers think twice before being lured away by competitors' offers.
        It's to cost TXU about $170 million.
        Reliant Energy is giving customers a reason to stay on the price to beat too.
        It will pay residential price-to-beat customers two $25 bill credits -- one in December and one in April.
        That's to save the typical customers 8.5%.
        It's a quick and meaningful way for Reliant to give savings to customers not choosing one of Reliant's competitive plans, said Reliant CEO Joel Staff.
        Reliant as well offers a Secure Plan that pays customers a $50 sign-up bonus and offers savings 5% below today's price to beat through the end of next year.
        TXU launched three competitive, term products as well.
        Customers picking a competitive plan get a $25 incentive.
        TXU's Texas Choice product is a month-to-month plan but includes a price guarantee through June 30.
        It gives customers 10% green power too.
        The plan plus sign-up incentive would save the average, 1,500 kwh/month customer about 4% off today's price to beat over the next year.
        TXU's SmartSaver 24 locks in price for two years and offers a 6% saving versus today's price to beat.
        The SmartSaver 36 offers a three-year price guarantee with 8% savings off the price to beat.
        TXU is pushing existing plans as well such as its five-year term plan and gas-price tracker plan.
        TXU will keep funding a 10% discount for low-income customers through Sept 1.
        It's paid for the discount since lawmakers raided the state's low-income assistance fund last year (RT, 8/10/05) and will work with lawmakers to get state funding restored.
        Originally published in Restructuring Today on October 4, 2006