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The Transition to Competition Has Been Marked By Failed or <br />Delayed Switching and Billing, Resulting in New and Difficult <br />Budgeting Burdens on Cities. <br /> <br /> One of the pervasive problems with the retail market has been the tardiness in switching <br />customers to their new provider and the inability of the customer to receive the full benefit of the <br />contract signed with the new provider. Despite several months of lead-time prior to the start of <br />competition, numerous CAPP and STAP accounts were not timely transferred to their provider <br />of choice. <br /> <br />Switching Delays Resulted in the Loss of Anticipated Savings. <br /> <br /> · In December 2001, the City of Nacogdoches submitted 130 points of delivery for <br /> transition to a new PEP. After three months of not receiving any bill for electric <br /> service, Nacogdoches received the first bills from the new REP on April 15, 2002. <br /> However, the initial billing statement included only 63 of the 130 accounts <br /> submitted. It took four more months before all of Nacogdoches' accounts were <br /> finally switched to the provider the City had requested in December 2001. <br /> <br /> · The City of Aransas Pass only recently received final bills for two accounts that were <br /> supposed to be transferred in January. <br /> <br /> · Some City of Plano accounts were not transferred until October and November of <br /> last year. <br /> <br /> · Fifteen accounts for the City of Denison, 18 City of Plano accounts, 31 City of Alice <br /> accounts, and 60 City of Grand Prairie accounts have yet to be switched to their <br /> selected provider, more than one year at~er competition began. <br /> <br /> · From a budgeting standpoint, Cities have been forced to estimate usage and accrue <br /> projected expenses for large accounts. <br /> <br /> · The City of Allen was building a new natatorium at the end of 2001, and its new <br /> account information was included with the accounts that were transferred to a new <br /> provider in December 2001. The first billing for the natatorium was not received by <br /> the City until July 2002. The City was billed for August and September usage, but <br /> has not yet received a bill for October and November. More concerning from a <br /> budgeting perspective, the City has yet to receive a single bill for its newly <br /> constructed Central Fire Station (completed at the end of 2001). The facility has been <br /> estimated to use 1.5 million kWh per year, but no bills have been issued confirming <br /> this projection. <br /> <br /> · It took almost six months for accounts for the new police and courts facility to be <br /> switched from the contractor to the City of Euless. <br /> <br />1 g 13\O0~na¢~ano030113grog 4 <br /> <br /> <br />