The most complete source of information for citizens is the State Public Utility Commission’s (PUCT) “Texas Electric Choice” website at

http://www.powertochoose.org . The website contains general information, answers to questions and specific information on providers and rates.

Question: What is deregulation?

Answer: Electric deregulation began in Texas January 1, 2002, as a result of Texas Senate Bill 7, which enabled the State of Texas to restructure its electric utility industry. Customers now are able to "shop" for electricity from a variety of companies, called “retail energy providers” (REP’s), just as they would shop for groceries, automobiles or apparel. The electricity still flows across the same poles and wires and the existing electric utility in the area still maintains them.

Question: What is a REP?

Answer: A REP is a company that sells electricity to end-users, which include businesses as well as residents. Customers are now able to contract with a variety of REP’s for their electrical service.

Question: Can I switch electric service to a new provider?

Answer: Customers of Texas-New Mexico Power can switch to a new REP. CoServ customers are not able to switch at this time because CoServ, as an electric cooperative, has not opted-in to participate in deregulation.

Question: Where can I get more information regarding retail electric providers (REP’ s) in Lewisville and deregulation in general?

Answer: The best source for information is the State’s website at

www.powertochoose.org . This website contains basic information, copies of brochures and press releases, and a list of REP’s with contact information. The website includes a step-by-step process for selecting a REP. The State also has a toll-free phone number for assistance: 1-866-797-4839.

Customers should make sure that they review the provisions of the different contracts and select the REP that meets their specific needs. Contract provisions include signing incentives, disconnection charges, monthly fees, etc., as well as different rates.

Question: What do I do if my power goes out?

Answer: TNMP, as the transmission and distribution provider, should continue to be contacted to report service interruptions or outages and for delivery related questions.

Question: Do I have to switch, or do anything at this time?

Answer: Residential customers that do nothing will automatically be placed in the “ ;price to beat” (PTB) rate category and will continue to receive electricity without interruption, as usual, at a generally lower rate than their current rate. Residential customers deciding not to switch will be switched automatically to Texas-New Mexico Power’s affiliated REP, First Choice Power, Inc., at the new reduced “price to beat” rate.

However, large business and commercial customers with demands exceeding 1,000 kW will not be protected under the PTB rate, and they will have to contract with an electrical provider to obtain the lowest rate. Not doing anything in this case, will result in higher rates.

Question: What happened to Texas-New Mexico Power? Can I keep my service with them?

Answer: Retail service from Texas-New Mexico Power (TNMP) is being provided by its affiliated REP, First Choice Power, Inc. Customers that had received service from Texas-New Mexico Power will be automatically switched to First Choice Power, Inc. unless they select a different REP. Texas-New Mexico Power will remain in service as the company providing the poles, wires, meters, etc. used for distribution of the electricity within the City.

Question: How will electric deregulation affect my electric rates? Will my rates go down?

Answer: On January 1, 2002, rates for most customers were lowered. This is known as the "price to beat" (PTB) rate. The deregulation legislation, under regulation by the State Public Utilities Commission, required that the affiliated Retail Electric Providers provide this reduced rate to residential and small commercial customers (peak demand of less than 1 megawatt: usage over 1 MW typifies large commercial or industrial customers). The “price to beat” rates can be found on the State website.

At its website, the State indicates that the residential “price to beat” rate for First Choice Power will decrease customers’ rates by 18.08%, with the cost dropping from the former TNMP rate of 10.57 cents per kWh to 8.66 cents per kWh.

Retail Electric Providers

Question: Who are some of the REP’s providing service in Lewisville?

Answer: A complete list of REP’s, with phone numbers and e-mail addresses, is available at the State’s website. Not all the REP’s that are listed are able to provide service in Lewisville yet; however, several of them have indicated that they intend to expand to this area. More electric providers will probably be certified in the future. Following is a list of the REP’ s and basic contact information:

The New Power Company	Phone: 1-800-NEW-POWER website: www.newpower.com
TXU Energy, Inc.	Phone: 1-877-460-7066 website: www.txuenergy.com
Reliant Energy Retail Services	Phone: 1-877-460-7066 website: www.txuenergy.com
First Choice Power, Inc.	Phone: 1-866-469-2464 website: www.firstchoicepower.com
Green Mountain Energy Company	Phone: 1-866-473-3689 website: www.greenmountain.com
Entergy Solutions, Ltd.	Phone: 1-866-368-3749 website: www.entergysolutions.com
Utility Choice Electric	Phone: 1-866-839-2782 website: www.uchoice.com
GEXA Energy	Phone: 1-866-961-9399 website: www.gexaenergy.com
ACN Energy, Inc.	Phone: 1-800-348-6496 website: www.acnenergy.com
Cirro Corporation	Phone: 1-866-MY-CIRRO website: www.cirrocorp.com
Energy America	Phone: 1-888-305-3828 website: www.energyamerica.com

Please note that the address for First Choice Power, Inc. is incorrect on the State website: it is

www.firstchoicepower.com.

Switching to a New Retail Electric Provider

Question: Do I have to switch, or do anything at this time?

Answer: No. Customers deciding not to switch will be switched automatically to Texas-New Mexico Power’s affiliated REP, First Choice Power, at the new reduced “price to beat” rate.

Question: Can I switch electric service to a new provider?

Answer: Customers of Texas-New Mexico Power can switch. CoServ customers are not able to switch at this time because CoServ, as an electric cooperative, has not opted-in to participate in deregulation.

Question: If I switch, will my new electricity be as reliable as before?

Answer: Yes. Since the transmission and distribution of your power will continue to be provided by TNMP, the existing utility, you get the same level of reliability. TNMP will continue to maintain the poles and wires, regardless of what provider is selected by the customers. The only thing that changes is savings and customer service.

Question: If I switch, will I need a new electric meter?

Answer: No. Customer meters are not supposed to be changed for service from a new REP.

Question: If I switch, where will my electricity come from?

Answer: TNMP, the current electric utility will continue to deliver electricity through the existing power lines and system. The electric power will come from a regional power pool – a mixture of energy from traditional power plants and other sources like wind, water, sun and natural gas.

Rates

Question: How will electric deregulation affect my electric rates?

Answer: On January 1, 2002, rates for most customers were lowered. This is known as the "price to beat" rate. The Public Utilities Commission of Texas (PUCT) required that the affiliated retail electric providers (REP’s) provide this rate to residential and small commercial customers with a peak demand of less than 1 megawatt (usage over 1 MW typifies large commercial or industrial customers). The “price to beat” rates can be found on the State website.

The State indicates that the residential “price to beat” for First Choice Power will decrease customers’ rates by 18.08%, with the cost dropping from the former TNMP rate of 10.57 cents per kWh to 8.66 cents per kWh.

Question: How long will the "price to beat" be in effect?

Answer: The "price to beat" will be in effect for a few years until the new deregulated market is stabilized and competition is assured.

Service Reliability and Outages

Question: What do I do if my power goes out?

Answer: Because Texas-New Mexico Power is maintaining all the system required for your service, regardless of the REP, customers should continue to call them in the event of an outage. However, most REP’s will accept customer service calls and forward them to TNMP.