The state expects that 3,600 new jobs will be created by 2004. Pennsylvania's Public Utility Commission Chairman, John Quain, believes that the deregulation of Pennsylvania's energy market was successful because the restructuring plan did not require utilities to sell their generation plants, allowed long term contracts between generators and distributors, and set a high benchmark price that allowed new companies to compete. Pennsylvania was also well prepared for deregulation. The state is a net exporter of electricity making energy distribution reliable because supply is above demand. This new generation capacity is placing energy supply well above demand and is creating a buyer's market that Texas hopes will spark competition.
High supply is the secret to Texas' success thus far.
The Electric Reliability Council of Texas, Inc. will regulate and manage the transmission and distribution of energy from the utility to the consumer. Competition on a retail market is expected to begin in January 2002. The pilot program is scheduled to begin on 1 June of this year. California acted prematurely in deregulating their energy market in 1998. California rapidly deregulated their markets when they did not have sufficient energy supplies, transmission capacity, or public awareness.