Customer Education

1

• Customer Education
• Focus Groups

2
Objectives

• Explore deregulation awareness
• Explore customer awareness expectations and needs

3
Methodology

• Four Focus Groups
• Residential and Small Business Customers
• Metroplex Customers
• Each Focus Group - - Approximately 100 minutes

4
Awareness/Perceptions of Deregulation

• Fewer than half of participants had any awareness
  of deregulation
• Some had heard of deregulation in other states
• Virtually no substantive knowledge

5
Perceptions of Deficiencies in Other States

• In California I heard they found out that it was
  more beneficial for utility companies to work
  with business than personal because they make
  more profit that way.
• In California I have heard it really has not
  helped that much. The rates have not gone down.
• We have had a couple of problems with it in New
  York. We have the problem of having two electric
  companies for the same store. One actually
  provides the service and one provides the
  transport of the service to the store.

6
First Impressions

• It makes the rates more competitive.
• I like the idea of having choices. It would not
  hurt to have a little competition out there.
• There is no choice. You play by TXUs rules.
  However good their system is, you are held
  captive to it. So hopefully deregulation will
  not only result in lower prices but better
  service.
• They TXU arent bad, but I would like to see
  more competition to find out what else is out
  there.

7
Even after the deregulation process was
discussed, many participants were unable to
separate the responsibilities of the wires
company from that of the retail electric
providers.

• Id be terrified to change electric companies.
  I just see now all kinds of problems like getting
  electricity shut off for a couple of days. That
  would just kill us.

8
Perceptions that benefits of deregulation would
be short-lived, and possibly never materialize.

• I figure it will be like the phone company - -
  lower bills up front, higher bills thereafter.
• The little guy is going to have to pay a whole
  lot more than hes been paying for the past 50
  years.
• What is to keep rates from being jacked up since
  we dont have a state agency.
• Doesnt this deregulation add a middle man?
  How is this going to save us money?

9
Communication of Deregulation Information

• Want information from the PUC and TXU
• I feel like its an obligation to hear from
  them.
• Where else are you going to get information?
  You cannot look in the newspaper everyday hoping
  for an article on deregulation.
• They TXU would put their best face forward and
  I would expect that.

10
Timing of Information

• I say start now. There are people like me who
  want to know. I want to read and re-read it.
  Because the second time I read it I see things I
  did not see the first time or that I misread. So
  when it come about, I know what is going on.
• I dont think a year or two ahead of time they
  know everything.
• A year out, and send out in increments. It
  gives more time to digest the information.
• I think the problem with all at once is that a
  lot of people are not avid readers. This is not
  interesting stuff.
• You have to keep bombarding people with
  advertisements because people just dont get it
  the first time.

11
IssuesSmall Business Customers

• What happens if the retail electricity provider I
  choose goes out of business?
• What assurance do I have that new retail
  electricity providers are reputable?
• Are there any slamming or cramming safeguards to
  protect customers?
• After deregulation, who will customers call if
  they experience an electricity outage?
• Should I expect the frequency of electrical
  outages to change if I switch to a new retail
  electricity provider?
• Are there any restrictions on how much energy I
  can use and when I can use it?
• Are there special plans I can select to save
  money or ensure higher quality electricity?
• What restrictions, if any, are there on switching
  retail electricity providers?
• Will I get one bill or will there be multiple
  bills?
• Will I be barraged with telephone solicitations?

12
IssuesResidential Customers

• How will deregulation benefit customers?
• What financial benefits can I expect from
  deregulation?
• Do I need to sign a contract?
• What is the total charge per kilowatt hour?
• Are there special plans that I can select to save
  money or ensure higher quality electricity?
• What assurance do I have that the new retail
  electricity providers are reputable?
• What happens if the retail electricity provider I
  choose goes out of business?
• How will reliability be assured in a deregulated
  environment?
• Are there any slamming or cramming safeguards to
  protect customers?