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<br />Dereaulation of Electric Utility Industrv - Januarv. 2002 <br /> <br />Prior to deregulation - integrated utility, same company generated electricity, <br />delivered electricity and billed customers. <br /> <br /> RELIANT ENERGY <br />. . . <br />Generation Delivery Billing <br /> & & <br /> Metering Retail <br /> <br />Subsequent to deregulation - utility (and Reliant) split into three separate <br />businesses. S 131 <br /> <br /> <br /> <br /> <br />Billina Be. <br />Retail <br />Retailers <br /> <br /> <br />Retailers include Reliant Energy, TXU, GEXA Energy, First Choice, Green <br />Mountain, First Constellation, etc. <br /> <br />Customers receive one bill from their retail provider. CenterPoint Energy bills the <br />retail providers for "delivering" the electricity. Our portion of the bill received by <br />the customer is about 3.5 centsjkwhr. The average residential rate is <br />approximately 15 centsjkwhr. <br /> <br />Franchise Payments <br /> <br />. Prior to deregulation, CenterPoint Energy paid 40/0 of gross receipts as a <br />franchise fee. <br /> <br />. With deregulation, the utility is unable to pay on gross receipts since the <br />"wire company" does not bill customers. <br />