NEWS	Consumers Union Southwest Regional Office

"Last night's House State Affairs Committee action on CSSB 7 improved the bill significantly for residential customers through an amendment sponsored by Rep. Kevin Bailey of Houston. Prior to adoption of Rep. Bailey's amendment the bill required residential and small commercial customers to pick up the majority of the tab for the utilities' so-called stranded costs. Rep. Bailey's amendment requires a more fair allocation, which means that large industrial customers will pick up more of their fair share.

"The Bailey amendment is a tremendous improvement to the bill. However, we're not willing to endorse the bill just yet, simply because we know that there are 50 or 60 lobbyists, the Governor's office and others trying to strip the Bailey amendment from the bill. If the amendment were a sure thing and a satisfactory low-income rate program is added to the bill, our position might be different.

"Make no mistake about it. How stranded costs are paid for makes a real bottom-line difference for Texas residential customers. The Bailey amendment also helps the competitive market for residential customers develop because it reduces one of the "fixed costs" competitors have to factor in when deciding whether the residential market would be profitable for them or not.

"If the Bailey amendment gets pulled off the dereg bill then we know the Emperor has no clothes-meaning that all the benefits promised residential customers are just a big snow job-this bill would be by and for the big customers."

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.