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The Standard Offer: State-by-State Evolution

Massachusetts: Moving to Market Prices
Fortnightly Magazine - August 2000

service. The staff is requesting comments on this and other aspects of the draft rule.

The second Texas proceeding concerns the "price to beat" . The Texas restructuring act requires competitive affiliates of the regulated utilities to offer a rate known as the "price to beat" to residential and small commercial customers. 4 These customers will be placed automatically on "price to beat" service if they don't choose another competitive supplier. Accordingly, "price to beat" functions the way utility generation service does in other states. The price to beat must reflect a 6 percent discount off bundled rates in effect as of Jan. 1, 1999.

Commission staff is conducting workshops regarding the price to beat, and plans to issue a preliminary proposal for comment. Staff is addressing issues such as the rate design for the service and the process for adjusting the "price to beat" rate for fuel price changes and other factors.

1 New York Public Service Commission, , Case 00-M-0504, p. 2 (March 21, 2000).

2 Id. pp. 2-3

3 Public Utility Regulatory Act, Texas Utilities Code Annotated § 39.106.

4 Public Utility Regulatory Act, Texas Utilities Code Annotated § 39.202.

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